Here we highlight key recent developments in environmental, social and governance matters of relevance to public and private companies globally. For more information on this evolving business and legal landscape, we encourage you to reach out to our ESG practice website.
Key Developments
ISSB’s IFRS S1 and IFRS S2 standards continue to gain momentum.
In order to promote a global sustainability disclosure framework and avoid unnecessary duplicative reporting requirements, the International Organization of Securities Commissions has called on its 130 member jurisdictions (including Australia, China, Japan, the UK and the U.S. and members of the EU) to consider the incorporation of the ISSB standards into sustainability reporting frameworks. Jurisdictions such as the UK and Australia have already announced plans to release mandatory ISSB-aligned disclosure requirements in the coming months. Influential standard setters, such as the Financial Stability Board (which issued the TCFD framework) and CDP, are also promoting the widespread adoption of the ISSB standards by integrating the standards within existing voluntary disclosure frameworks.
EU adopts ESRS.
The European Commission has adopted the first European Sustainability Reporting Standards (“ESRS”), which are reporting standards for disclosures under the Corporate Sustainability Reporting Directive (“CSRD”). Although the ESRS requires reporting from a “double materiality” perspective whereas the ISSB standards reference a single materiality threshold, ISSB has stated that it is working with the European Commission on interoperability guidance material to assist companies that intend to apply both the ESRS and the ISSB standards.
