ISSB consultation on agenda priorities
Background
The International Sustainability Standards Board (ISSB) will develop and pursue its initial work plan subject to public consultation on agenda priorities.
As a first step in the project, the ISSB published a request for information to gather views on:
- the strategic direction and balance of ISSB activities;
- the suitability of proposed criteria for assessing the priority of sustainability-related matters (including topics, industries and activities) that could be added to the ISSB’s work plan; and
- a proposed list of sustainability-related matters (including topics, industries and activities) that could be added to the ISSB’s work plan.
The feedback received will inform the ISSB’s publication of its work plan for the first two years following the consultation.
Current status of the project
The agenda consultation was concluded on 24 June 2024 by releasing a feedback statement.
On the areas consulted on in the request for information, the ISSB received the following feedback and reacted by making the following decisions:
| Strategic direction and balance of the ISSB’s activities | Feedback indicated that most stakeholders viewed supporting the implementation of IFRS S1 and IFRS S2 as the highest priority for the ISSB in the next two years. The ISSB decided to place a high level of focus on supporting the implementation of IFRS S1 and IFRS S2 and to place a slightly lower level of focus on enhancing the SASB Standards and beginning new research projects. |
| Criteria for assessing sustainability reporting matters that could be added to the ISSB’s work plan | Most respondents agreed that the criteria identified by the ISSB were appropriate. A few respondents said the criteria should include considerations related to interoperability, differing concepts of materiality, global applicability and connectivity to the IASB’s work plan. The ISSB decided to make no substantive changes to six of the seven criteria proposed in the request for information and to change the criterion on how the proposed project relates to other projects to make it explicit that the ISSB will consider the work of other relevant standard-setters. |
| New research and standard-setting projects that could be added to the ISSB’s work plan | One of the two core sections of the request for information. It contained general considerations and introduced potential projects on (i) biodiversity, ecosystems and ecosystem services, (ii) human capital, and (iii) human rights. For each topic, subtopics were identified and respondents were asked to prioritise them. Respondents had mixed views on the project or set of projects the ISSB should prioritise. Most respondents supported the ISSB prioritising at least one of the proposed projects identified in the request for information, but views on the relative priority of each project were mixed. The ISSB decided to add to its work plan research projects on risks and opportunities associated with biodiversity, ecosystems and ecosystem services as well as human capital. |
| Integration in reporting |
The other core section of the request for information. While originally a joint project with the IASB on connectivity in reporting building on the IASB’s management commentary project and the Integrated Reporting Framework was envisaged, the request for information warned that such a project could be resource-intensive and asked whether such a project (joint or ISSB-only) should be part of the initial two-year work plan of the ISSB. Feedback from respondents indicated that although integration in reporting is important to many stakeholders, it is not a matter of priority for most investors. Approximately two-thirds of investors said a project on integration in reporting should be a lower priority for the ISSB or made no comment on integration in reporting and asked the ISSB to focus on other activities. In response to this feedback, the ISSB noted that it could continue to build on the significant accomplishments of IFRS S1 and IFRS S2 in providing connections in information between sustainability-related financial disclosures and financial statements and reiterated its support for the continued use and adoption of the Integrated Reporting Framework. |
Project milestones
| Date | Development | Comments |
|---|---|---|
| July 2022 | Project first discussed by the ISSB | The next expected project step is a request for information to be published in Q4 2022. |
| 4 May 2023 | Request for information published | Comments requested by 1 September 2023 |
| 24 June 2024 | Agenda consultation concluded by releasing a feedback statement |
