Global sustainability reporting standards drafts released

Chartered Accountants ANZ (CA ANZ) has welcomed the release of proposed climate and sustainability standards, which are designed to harmonise sustainability reporting across the globe.

The two draft standards were released by the International Sustainability Standards Board (ISSB). The first covers the general disclosure of sustainability-related investment information, whereas the second specifically covers climate-related disclosures. Generally speaking, the standards being drafted provide a framework so that information about sustainability and climate are easily accessible to potential and current investors, lenders and creditors.

“Climate and sustainability disclosures have become key requirements for most businesses, but the lack of a globally accepted reporting framework has caused confusion and even opportunities for greenwashing,” said CA ANZ Business Reform Leader Karen McWilliams.

“The formation of the ISSB at COP26 delivered an organisation to lead this work on sustainability standards.

“These proposals are the vital next step towards harmonising this complex and fragmented sustainability reporting landscape and creating the comprehensive global baseline that investors need to make the best possible decisions.”

If adopted, the standards would require the disclosure of sustainability-related risks and opportunities that a financial organisation is exposed to in a similar manner to other financial reporting requirements.

The ISSB is seeking feedback on the proposed standards until 29 July, and expects to have them finalised by the end of the year.

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