IFRS Foundation consults on creation of ISSB

Last September, the Trustees of the IFRS Foundation launched a consultation to assess whether there is a need for global sustainability reporting standards, and the role that the Foundation could play in developing such standards.

Keywords: Mazars, Thailand, IFRS, IASB, ISSB, COP26

17 June 2021

Now, as announced in March 2021, the Trustees have published an exposure draft (available here) proposing targeted amendments to the IFRS Foundation Constitution to permit the creation of an International Sustainability Standards Board (ISSB) that would set IFRS Sustainability Standards.

The IFRS Foundation’s proposals for the governance structure of the ISSB are similar to the existing structure of the IASB (International Accounting Standards Board). Some slight differences would permit the new Board to reach an appropriate level of maturity in its standard-setting and to develop its technical expertise within the limits of the Trustees’ strategic direction.

The due process for the publication of IFRS Sustainability Standards would also be very similar to the existing due process for IFRSs published by the IASB.

Stakeholders have until 29 July 2021 to send comments to the IFRS Foundation, which will take these comments into account when deciding whether to create the new Board. If the plan goes ahead, the formation of the ISSB will be announced at the next United Nations Climate Change Conference (COP26), scheduled for November 2021.

The IFRS Foundation has also published a Feedback Statement (available here) on last September’s consultation, summarising the feedback received in the 577 comment letters.