ISSB to commence research projects about risks and opportunities related to nature and human capital
See ISSB Update here and human capital press release here.
The ISSB plans to rely on pre-existing frameworks of reference in this area, in particular the SASB (Sustainability Accounting Standards Board) standards and the CDSB (Climate Disclosure Standards Board) guidelines - both of which come under its supervision - as well as the work carried out by the TNFD (Task Force on Nature-related Financial Disclosures). Preparers are already invited to take these other reference frameworks into account when preparing their sustainability reporting on aspects other than climate in application of IFRS S1.
The ISSB also plans to continue to develop approaches that would promote interoperability between its global baseline and other standards and frameworks widely used to communicate the financial effects of risks and opportunities arising from sustainability issues.
These new research projects are therefore intended to support the standard-setting work that could in time be undertaken by the ISSB with the aim of broadening the current basis of the two initial standards – IFRS S1, General Sustainability Reporting Requirements and IFRS S2, Climate-related Disclosures - if necessary.
The other key priorities identified by the ISSB for the next two years are (i) supporting the implementation of IFRS S1 and IFRS S2, and (ii) continuing work to improve SASB standards. Resources will also be dedicated to working with the International Accounting Standards Board (IASB).
In light of the stakeholder feedback received during the public consultation, the ISSB has chosen to exclude, for the time being, research projects related to human rights and integration in reporting, while reserving the option of addressing them in the future depending on developments in these important areas. Both the ISSB and IASB will continue to support the use of the Integrated Reporting Framework. In June, the ISSB expects to publish (i) a summary of the feedback on its agenda consultation, (ii) its response to the feedback and (iii) the outcome of its deliberations through the release of its work plan for the next two years.