IFRS Consultation on the International Sustainability Standards Board

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Summary

The IFRS Foundation Trustees have published an Exposure Draft that outlines proposed targeted amendments to the IFRS Foundation Constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS sustainability standards. The proposed amendments are exposed for comment until 29 July 2021.

Business case

In the context of the IFRS Foundation strategy review, the Trustees have published a consultation paper on sustainability reporting to determine:

  • whether there is a need for global sustainability standards;
  • whether the IFRS Foundation should play a role; and
  • what the scope of that role could be.

The Trustees of the IFRS Foundation published their Consultation Paper on Sustainability Reporting in September 2020.

The PRI has submitted a response to the consultation. 

Feedback to the consultation confirmed an urgent need for global sustainability reporting standards and support for the Foundation to play a role in their development. The Trustees are therefore continuing their work on the establishment of an international sustainability reporting standards board within the existing governance structure of the IFRS Foundation, as set out in the Trustees’ February announcement.

In March 2021 the Trustees issued a public statement explaining their intention to publish a feedback statement that summarises the responses received to their 2020 Consultation. Together with the feedback statement, the Trustees will publish for public comment the proposed changes to the Foundation’s Constitution necessary to formalise establishment of a new board, including its composition.

In April 2021, the Trustees published two documents in relation to their project on sustainability reporting. The first, a Feedback Statement, summarises the significant matters raised by respondents to the Consultation Paper on Sustainability Reporting. The second is an Exposure Draft that outlines proposed targeted amendments to the IFRS Foundation Constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS sustainability standards. The proposed amendments are exposed for comment until 31 July 2021. 

In parallel, the Trustees are leading various workstreams to see if certain key requirements can be met ahead of making a final determination about the creation of a new board. The Trustees aim to make a final decision about a new board before the November 2021 United Nations COP26 conference.

Collaboration details

Type
Consultation
Status
Ongoing
ESG theme
  • Disclosure
  • Environment
  • Governance
  • Social
Created on
Deadline
Geography
Global
Attachments
  • ifrs_proposed-constitution-amendments-to-accommodate-sustainability-board.pdf Download
  • ifrs_sustainability-consultation-paper-feedback-statement.pdf Download