Generally, the IFAC response to the request for information notes that IFAC supports the ISSB’s focus on high-quality implementation of IFRS S1 and IFRS S2 so that jurisdictions will more readily adopt ISSB requirements. IFAC also urges the ISSB and the IFRS Foundation to secure the resources necessary (funding, staff, volunteer expertise, etc.) to continue to move with pace in new research and standard-setting activities related to the sustainability topic areas identified in the consultation. IFAC also believes that interoperability with GRI, ESRS of the European Union, climate disclosures in the U.S. is an important starting point for a truly global system that is built upon the ISSB’s global baseline.

On the topic of integration in reporting the response states:

IFAC believes that now is the time for the ISSB and IASB to jointly develop the global baseline for a holistic, narrative analysis of how reporting entities create, preserve or erode value over time, including how sustainability disclosures are connected to financial position and performance. This framework should combine key Framework principles, concepts and content elements with the IASB’s work on Management Commentary. Based on our analysis, companies need guidance on how best to provide such narrative information in a concise, comparable and consistent manner that reinforces connectivity with the financial statements — all part of a coherent and comprehensive system of investor-focused, general purpose financial reporting that includes both sustainability-related financial information and financial statements, and addresses the drivers of value creation in the context of the external business environment, purpose, strategy, governance, business model and performance.

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