In a move towards greater sustainability, nations across continents are laying the groundwork for a new era of financial transparency.
Leading the charge, Canada, Japan, and Singapore have recently announced consultations aimed at incorporating the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, commonly known as the ISSB Standards, into their respective regulatory frameworks.
This global initiative marks a significant step towards a uniform baseline of sustainability-related disclosures, ensuring investors are equipped with high-quality, comparable information critical for informed decision-making. The ISSB’s Chair, Emmanuel Faber, has lauded these efforts, emphasizing the consultations’ role in accelerating the adoption of these standards. “We welcome consultations by jurisdictions around the world including most recently in Canada, Japan and Singapore. The consultations demonstrate the momentum towards a global baseline of sustainability-related disclosures so that investors have access to high-quality, comparable information. We encourage stakeholders to engage proactively with these consultations, as the ISSB continues to work with jurisdictions on their journeys to adoption or other use of our Standards,” Faber noted.
In Canada, the Canadian Sustainability Standards Board (CSSB) has put forth proposals for the nation’s inaugural Sustainability Disclosure Standards, mirroring the ISSB Standards with certain adaptations. The CSSB is targeting a January 2025 effective date, highlighting the growing demand for consistent sustainability disclosure standards globally and the potential impact on investment decisions and Canada’s appeal to international investors.
Meanwhile, the Sustainability Standards Board of Japan (SSBJ) is advancing with exposure drafts that integrate the core requirements of the ISSB’s IFRS S1 and IFRS S2 standards, supplemented by jurisdiction-specific options where deemed necessary. This move underscores Japan’s commitment to enhanced sustainability reporting.
Singapore’s SGX RegCo is also in the fray, consulting on the integration of the ISSB Standards into its sustainability reporting rules, specifically for climate-related disclosures. This approach indicates a phased adoption strategy, with immediate emphasis on climate disclosures while encouraging broader reporting aligned with the ISSB Standards on a voluntary basis.
These consultations represent a concerted effort towards aligning global financial markets with sustainable practices, heralding a future where financial disclosures are not just about numbers but about the impact on our planet.
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