IOSCO Endorses ISSB Climate/ ESG Reporting Standards For Business
- Media Manager
- Jul 30, 2023
- 1 min read
Forbes
Written By: Jon McGowan
Published: July 31st, 2023
The International Organization of Securities Commissions announced their endorsement of the International Sustainability Standards Board’s recently released corporate reporting standards for sustainability and climate risk. The endorsement is a step towards broader acceptance of ESG reporting.
The European Union was the first major jurisdiction to announce a reporting scheme. The Corporate Sustainability Reporting Directive was introduced in November 2022 to be sent to the European Commission for final approval. The CSRD is being implemented in phases and was prepared to move forward when the Commission decided it needed more time. Corporate executives were concerned that the new standards, drafted by the European Financial Reporting Advisory Group were unclear, a common problem with ESG. The standards were finally adopted by the Commission on July 31, 2023.
Simultaneously, the International Financial Reporting Standards Foundation began work on its own financial reporting standards. IFRS measures for financial accounting are used in 168 jurisdictions. Notably, the U.S. is not one of those jurisdictions, relying on the Generally Accepted Accounting Principles, or GAAP, as adopted by the SEC. The IFRS Foundation created the ISSB to draft the just announced IFRS Sustainability Disclosure Standards.
