Call for stronger alignment of efforts around sustainability disclosure
02 Jun, 2022
In a joint statement, the International Federation of Accountants (IFAC), the Principles for Responsible Investment (PRI) and the World Business Council for Sustainable Development (WBCSD) call for alignment in the sustainability disclosure standard-setting process and in key concepts, terminologies, and metrics upon which disclosure requirements are built.
The statement notes the significant efforts by the International Sustainability Standards Board (ISSB), the US Securities and Exchange Commission (SEC), and the European Commission together with the European Financial Reporting Advisory Group (EFRAG) aimed to address the need to enhance and evolve corporate reporting to include and consider sustainability information. However, it also states that a coordinated approach is needed to provide the comprehensive global baseline of sustainability disclosures needed by capital markets. Interoperability between different requirements would help meet the needs of investors who allocate capital internationally, companies who operate and raise capital across national borders, and the accounting profession that serves all consumers of corporate reporting. The statement notes:
Together, we welcome the establishment by the International Sustainability Standards Board of a working group to enhance compatibility between the global baseline and jurisdictional initiatives through a coordination mechanism. We strongly urge all involved policymakers to engage with this platform at this current historical juncture and strive towards delivering the level of alignment needed by financial markets at the global level.
Please click to access the full statement on the IFAC website.