The International Sustainability Standards Board (ISSB), a branch of the IFRS Foundation, is steering a new course towards enhancing corporate disclosures on biodiversity and human capital. The ISSB builds on several key initiatives which include the Sustainability Accounting Standards Board (SASB) Standards, the Task Force for Climate-related Financial Disclosures (TCFD) Recommendations, the Integrated Reporting Framework, and the Climate Disclosure Standards Board (CDSB) Framework. These integrations and expansions are designed to create a unified approach to sustainability reporting.
Here’s what you need to know about ISSB’s fresh focus
Expanding Disclosure Horizons: The ISSB is exploring new standards to provide clear pictures of how natural and human resources impacts company value.
Building on Foundations: The move follows the introduction of general sustainability and climate reporting standards (IFRS S1 and IFRS S2) that set the stage for global disclosure practices.
Why Biodiversity and Human Capital?
Beyond Climate: While climate remains a priority, the ISSB recognizes the need to broaden sustainability discussions to include natural ecosystems and the workforce. This shift aligns with recent regulatory changes in Europe, where the inclusion of biodiversity and human capital in disclosure requirements has been emphasized through frameworks like the Corporate Sustainability Due Diligence Directive (CSD). This directive mandates that European companies ensure their operations on supply chains are free from environmental harm and respect human rights.
Future Plans
Enhanced Guidelines: The ISSB plans to refine industry-specific standards and ensure they connect with broader financial disclosures.
Stakeholder Engagement: Ongoing discussions with global stakeholders will help shape the practical implementation of these new standards.
Global Integration: Efforts will aim to align with other international standards, such as those proposed by the Task Force on Nature-related Financial Disclosures (TNFD).
This development signifies an important step toward how businesses report and manage their interaction with nature and their employees.
Harmony Analytics and Your Business
As these new standards evolve, staying informed and adaptable is key. Harmony Analytics offers tools and services to help businesses understand and integrate these emerging requirements into their strategic planning. For detailed support in navigating these changes and leveraging your analytics capabilities, visit our website and discover how we can assist you in staying ahead in the evolving landscape of corporate disclosures.
