General Sustainability-related Disclosures

The staff recommend that the ISSB clarify that the requirement to revise comparative information to reflect updated estimates applies to current period estimates that were disclosed in prior periods (historic estimates), and does not apply to forward-looking estimates. The staff also recommend that the ISSB confirm the proposed requirement for an entity to report its sustainability-related financial disclosures at the same time as its related financial statements but introduce transitional relief for a limited period of time to permit an entity to report sustainability-related financial disclosures up to three months after the publication of its financial statements. The staff will not ask the ISSB to make a decision at this meeting on how long the transitional relief should last.

Climate-related Disclosures

At this meeting, the ISSB will consider the proposed requirements for an entity to disclose information on strategy and decision-making (including transition planning) and climate-related targets. The staff recommend that the ISSB confirm, but clarify, that an entity would be required to disclose Information about its strategy and decision-making and information about its climate-related targets. The staff also recommend that the ISSB introduce additional disclosure requirements about the assumptions made, and dependencies identified, by the entity in developing its transition plan and the implications for the entity’s transition plan if the assumptions are not met. Furthermore, they also recommend the Standard include requirements to disclose information about the scope of the target to enable users to understand whether the target applies to the entity in its entirety or to only a part of the entity (for example, specific business units or specific geographic regions).

Cross-cutting

The proposed requirements in paragraph 22 of Exposure Draft IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information ([draft] S1) and the equivalent requirements in paragraph 14 of Exposure Draft IFRS S2 Climate-Related Disclosures ([draft] S2) would require entities to disclose the effects of its sustainability-related risks and opportunities on its financial position, financial performance and cash flows for the reporting period and the anticipated effects. The staff will present a summary of the feedback received and asks the ISSB to provide feedback on some illustrative examples they have prepared. 

ISSB Taxonomy

In May 2022, the IFRS Foundation published a staff draft of a taxonomy for digital reporting representing the disclosure proposals in the two ISSB exposure drafts. The staff draft was accompanied by a Request for Feedback soliciting public feedback on staff recommendations on fundamental matters that need to be considered early to enable the ISSB to develop a Taxonomy. The purpose of this meeting is to provide a summary of the feedback obtained during the feedback period.

Our pre-meet­ing summaries is available on our November meeting notes page and will be sup­ple­mented with our popular meeting notes after the meeting.