ISSB announces moves to consolidate reporting of emissions and transition plans

July 3, 2024|Written by |International Sustainability Standards Board

The International Sustainability Standards Board (ISSB) has announced new initiatives to help standardise the disclosure of company transition plans and greenhouse gas emissions as part of its drive to consolidate environmental reporting regimes around the world. 

Under the ISSB’s new two-year work plan, the board said it had signed a deal to work with the Greenhouse Gas (GHG) Protocol on ensuring that the two organisations’ standards remain compatible.

And in another key development, the International Financial Reporting Standards (IFRS) Foundation, whose trustees formed the ISSB three years ago, will take charge of materials developed by the UK’s Transition Plan Taskforce, which was launched in 2022 to develop the “gold standard for private sector transition plans”. 

The moves, announced last week on the sidelines of London Climate Action Week, are the latest steps towards a consolidation of the huge array of international sustainability reporting regimes via the IFRS Foundation and ISSB, with the aim of improving comparability for investors, regulators and other stakeholders alike. 

The ISSB said that taking over “responsibility for the disclosure-specific materials developed by the Transition Plan Taskforce” will facilitate the implementation of its climate reporting standards, known as IFRS S2, which require companies to reveal any plans they have in place to transition to a lower-carbon economy.  

“Companies developing and disclosing transition plans need clear and consistent guidance,” Amanda Blanc, co-chair of the Transition Plan Taskforce, said in the ISSB statement. 

“Today’s announcement that the International Sustainability Standards Board will look to use the resources we have developed in the Transition Plan Taskforce is brilliant news and an important step towards greater consistency and clarity.”

Since IFRS S2 requires greenhouse gas emissions to be measured in accordance with GHG Protocol standards, the new deal signed between the ISSB and GHG Protocol is meanwhile aimed at ensuring the ISSB is kept involved in any updates to GHG Protocol rules. 

Alexander Bassen, chair of the GHG Protocol’s independent standards board, described the cooperation as “a momentous step in standardising GHG reporting globally”. 

Other initiatives under the ISSB’s new two-year work plan include the development of partnerships with CDP, formerly the Carbon Disclosure Project, and the Global Reporting Initiative.

According to the ISSB, more than 20 jurisdictions around the world have already decided to use its standards as part of their legal or regulatory frameworks, or are on the path to doing so. “Together, these jurisdictions account for nearly 55% of global gross domestic product (GDP) and more than 40% of global market capitalisation,” the board said. 

This page was last updated July 3, 2024

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