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Global Momentum Builds for Sustainability Disclosures as Key Jurisdictions Launch Consultations on ISSB Standards

Staff Writer

As the world moves towards more sustainable business practices, key jurisdictions including Canada, Japan, and Singapore are initiating consultations on the adoption of the IFRS Sustainability Disclosure Standards (ISSB Standards). This global shift aims to establish a consistent baseline for sustainability-related financial disclosures, enhancing transparency and comparability for investors across international markets.

  1. Canada, Japan, and Singapore are in the process of consulting on the implementation of the IFRS Sustainability Disclosure Standards (ISSB Standards) into their regulatory frameworks. This step is part of a broader global shift towards standardized sustainability-related financial disclosures.

  2. Australia and Malaysia have recently concluded similar consultations, indicating a growing interest in these standards across various jurisdictions.

  3. Brazil, Costa Rica, Sri Lanka, Nigeria, and Turkey have already taken steps to adopt or use the ISSB Standards, demonstrating a widespread recognition of the need for high-quality, comparable sustainability-related information for investors.

  4. Emmanuel Faber, Chair of the ISSB, welcomed these developments, highlighting the momentum towards establishing a global baseline for sustainability-related disclosures. He emphasized the importance of proactive engagement in these consultations to ensure the effectiveness of the ISSB Standards.

Key Consultations and Proposals:

  • Canada: The Canadian Sustainability Standards Board (CSSB) has proposed the first Canadian Sustainability Disclosure Standards, based on the ISSB Standards but with additional transition reliefs. They aim for an effective date of January 2025 to meet the rising demand for consistent sustainability disclosures.

  • Japan: The Sustainability Standards Board of Japan (SSBJ) has released exposure drafts that incorporate all requirements of IFRS S1 and IFRS S2, with potential jurisdiction-specific options. Their consultation period extends until the end of July 2024.

  • Singapore: The Singapore Exchange Regulation (SGX RegCo) is consulting on how to incorporate the ISSB Standards into its sustainability reporting rules, specifically for climate-related disclosures, starting in 2025. This includes a guide to help issuers implement these standards over time.