IIGCC welcomes the publication of the International Sustainability Standards Board (ISSB) standards as an important step towards establishing a ‘global baseline’ for climate-related disclosures
The standards will provide a useful foundation which jurisdictional standards will need to build on to ensure investors can reorient capital in line with net zero
Crucial that the ISSB standards are interoperable with wider national and regional reporting regimes, including the EU’s sustainability disclosure standards developed by the European Financial Reporting Advisory Group (EFRAG)
Today the ISSB published its standards, which will help to enhance the comparability and reliability of climate-related reporting. These standards build on the TCFD framework, which is already well understood and used widely by investors and corporates to assess climate-related risks and opportunities.
We welcome the use of the standards as part of a ‘building blocks’ approach, where they can serve as a global baseline on which jurisdiction-specific reporting frameworks can build with additional disclosures. With many investors setting ambitions to be Paris-aligned, the need to move beyond looking at individual company balance sheet impacts, by capturing the impact of investors’ holdings on the climate (e.g. ‘double materiality’), is critical. This will help to ensure investors have access to all the information they need to inform investment decisions and reorient capital in line with net zero.
The ISSB standards will reduce the fragmentation we see across the international reporting landscape. Interoperability of the standards with jurisdictional frameworks is vital to support cross-border comparability and consistency of climate disclosures is a significant step forward.
IIGCC welcomes the ongoing dialogue between the ISSB and EFRAG to ensure coherency between EU and international standards and we encourage this to continue. In addition, we want to see proportionality embedded at the heart of the framework to support the widespread and timely adoption across both developed and emerging markets. For example, this could be achieved by providing implementation guidance and distinguishing between baseline and advanced requirements.
IIGCC is proud to have fed into the development of the standards and we look forward to continuing our engagement with the ISSB to ensure they meaningfully contribute to the net zero transition.
Stephanie Pfeifer, CEO of IIGCC: “We welcome the publication of the ISSB standards as a basis for more consistent and comparable climate reporting globally. We need to build on the standards with jurisdictional reporting that captures the impact of companies’ activities and investments on the climate, and which capture the spectrum of physical and transition-related risks and opportunities presented by climate change in more granular detail.”
Faith Ward, Chair of IIGCC and Chief Responsible Investment Office of Brunel Pension Partnership: “The publication of international sustainability and climate reporting standards is a landmark moment for companies, investors and policy makers. It is, however, just the start. The standards create a globally consistent baseline that we must build upon both globally and locally to meet the evolving needs of business, investors and civil society – being Paris-aligned. I look forward to continuing to support the ISSB team in this vital piece of work”
NOTE: This response was developed in collaboration with a number of IIGCC members but does not necessarily represent the views of the entire membership, either individually or collectively.
IIGCC brings the investment community together to work towards a net zero and climate resilient future. We create change the world needs by unlocking investor action on climate change.
Our work supports investors in generating returns for clients and beneficiaries, which in turn provides financial wellbeing for future generations. We work with our members to address climate risk and ensure they are well positioned to make the most of investment opportunities offered by climate mitigation and adaptation efforts, ensuring that their investments contribute towards a better world for us all to live in.
Our team supports investors to create practical solutions that can make a real difference in tackling climate change – providing guidance and support on investment practices, policies and corporate behaviours that have real impact and deliver change that the world needs. For more information visit www.iigcc.org and @iigccnews
Ross Gillam, Head of Media Relations, IIGCC
T: +44 (0)7388 506013
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