ISSB Takes the Lead on Global Sustainability Disclosure Standards – Will the U.S. Follow?
Highlights
• In response to stakeholder demands for more consistent, comparable, and reliable information, the ISSB has issued a comprehensive set of sustainability-related financial and climate disclosure requirements
• The ISSB standards have substantial international support, and are widely viewed as paving the way for convergence on a single global sustainability disclosure standard
• The close collaboration between the ISSB and the EU to maximize the interoperability of their respective standards exemplifies how far the world has come in such a short time; and provides a roadmap for others, including the U.S., to adapt and adopt uniform disclosure requirements
One of the more vexing issues limiting the adoption of and reliance on mandatory environmental, social and governance (ESG) disclosures has been the lack of common standards or consistent methodologies for collecting and reporting verifiable and reliable data, measuring performance, or comparing performance within or across sectors. The absence of such a consistent framework – indeed the proliferation of literally hundreds of widely varying approaches – has led to widespread confusion with companies gravitating toward the framework that puts them in the best light.
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