ESG disclosures are becoming increasingly important in the world of business, but establishing a global baseline has always been complicated. Until now. In this blog we look at the ISSB in more detail and their quest for new worldwide sustainability standards.

Who is the ISSB?

The International Sustainability Standards Board (ISSB) is a standard-setting body established between 2021 and 2023 under the IFRS Foundation. Its main purpose is to create and develop sustainability-related financial reporting standards to address the growing need for consistent and comparable sustainability reporting in response to investors' demands.

Sustainability-related disclosures have historically been a part of financial reporting, but they have not always received significant attention within the accounting and financial reporting community. However, due to increasing awareness of sustainability issues, particularly climate change, there has been a recognized need for a specific framework for sustainability-related disclosures.

The ISSB made significant strides when they released the first versions of their long-awaited sustainability disclosure standards in May, 2023. This release marked the initial step in their long-term endeavor to establish a unified global baseline for ESG disclosure. At its core, the just-published ISSB standards aim to consolidate the existing ESG disclosure standards.

What Are the Sustainability Disclosure Standards?

The Sustainability Disclosure Standards are a set of guidelines and requirements that organizations follow when reporting information about their environmental, social, and governance (ESG) practices and performance. These standards cover various aspects of sustainability reporting, including assessing sustainability risks and opportunities and disclosing specific information related to climate change. They aim to provide a structured framework for organizations to report their sustainability-related data consistently, ensuring transparency and reliability in their reporting. By adhering to these standards, organizations offer stakeholders, such as investors and the public, clear and comprehensive insights into their sustainability efforts and their impact on the environment and society.

The ISSB standards have garnered recognition and support from various stakeholders worldwide. Soon after their launch, the CEO of the Principles for Responsible Investment (PRI) urged governments to consider making these standards mandatory within the next two years. In a significant move, Singapore became the first country to take action on this front, announcing its intention to require public companies to adhere to the ISSB's climate-related standards starting in 2025.

Why Is It a Good Thing?

The introduction of these sustainability disclosure standards represents a substantial leap forward in the promotion of sustainability and responsible business practices on a global scale. Adherence to these standards not only ensures regulatory compliance but also enhances an organization's credibility and reputation. Transparent ESG reporting fosters trust among stakeholders, including investors, customers, and the public, ultimately contributing to the long-term sustainability of businesses and our planet. 

How Can ERM Libryo Help?

With our global subject matter expertise and technology, we empower organizations to efficiently adopt and adhere to the ISSB's Sustainability Disclosure Standards. We are committed to helping businesses integrate responsible practices into their day-to-day operations and ensuring they thrive in a sustainable, responsible, and compliant manner.

ERM Libryo’s leading compliance platform streamlines regulatory and standards compliance for your business. This end-to-end compliance solution is designed to assist organizations in navigating the complexities of ESG regulations, EHS regulatory requirements, standards and other requirements. 

Let's take a quick look at how it works:

• Only the sections of law and regulations that align with your organization's business activities and jurisdiction are filtered and delivered to you.
  
• Say goodbye to deciphering complex legal jargon with simplified plain-text summaries that make understanding legislation a breeze.

• Stay ahead of your regulatory changes with real-time legal update notifications at your fingertips.
  
• ERM Libryo allows you to complete your own self-assessment process, ensuring comprehensive and continuous compliance.
  
• Effortlessly navigate and complete required tasks with our user-friendly interface.
  

With ERM Libryo, you can confidently identify applicable regulations, prioritize working toward compliance for your highest risk legal obligations. You can count on us as your partner for ESG compliance and achieving your sustainability goals. For more information or a demonstration of the platform, reach out to our team today.

Together, let’s navigate ESG disclosures for a sustainable future!