ESRS-ISSB Standards interoperability guidance has been released today! ESRS preparers are able to report on climate, also in compliance with ISSB Standards, only with a very limited number of points to consider, clearly identified in Section 3 of this document. ESRS preparers are able to utilize ESRS to comply with ISSB Standards to report on matters beyond climate. Time to celebrate for the high level of alignment! #EFRAG #ESRS #ISSB #interoperability Patrick de Cambourg Sven Gentner  Sue Lloyd Tom Dodd  Sam Prestidge  Richard Barker  Kerstin Lopatta  Christoph Töpfer  Pedro Santiago Faria  Erik Van Der Plaats  Eric Duvaud Catherine DeKeizer Sylvie Leger Laura Girella Caroline Clark-Maxwell Roberta Ravelli Dania Merla Abigail Levrau

IFRS Foundation's new guide empowers companies to apply ISSB standards voluntarily! The IFRS Foundation has released a new guide to help companies voluntarily implement International Sustainability Standards Board (ISSB) Reporting Standards (IFRS S1 and IFRS S2). This guide offers businesses a structured approach to communicating sustainability-related financial information and aligning with global disclosure standards. Here are some key insights: -Transitional reliefs: Companies can apply the ISSB Standards in phases, taking advantage of transition reliefs to simplify initial compliance. -Proportionality mechanisms: The guide introduces support mechanisms that allow companies to disclose information based on available resources without undue cost or effort. -Global Alignment: It encourages consistency and comparability in ESG reporting, helping companies meet growing investor and stakeholder demands. This is a significant step by IFRS to simplify the complexity of ISSB reporting standards for transparency in the corporate sustainability journey! Access the the complete guide below #Sustainability #ESG #ISSB #CorporateResponsibility #IFRSS1 #IFRSS2

The sustainability reporting interoperability guidance that we've all been waiting for... just how tricky is it to comply with both the new European Sustainability Reporting Standards (ESRS) and the International Sustainability Standards Board (ISSB) Standards... this guidance reassures and provides a clear mapping between the standards. The guidance is also useful as it sets out how ESRS disclosures are much more comprehensive, and are in effect ISSB disclosures + impact disclosures. Interesting times! And be careful - not all "Sustainability reports" are made the same way.

EFRAG just published the interoperability guidance for ESRS - ISSB ⬇️

On May 2, 2024, the IFRS Foundation and European Financial Reporting Advisory Group (EFRAG) unveiled joint guidance on aligning the International Sustainability Standards Board (ISSB) Standards with the European Sustainability Reporting Standards (ESRS). This important material offers clarity on interoperability for climate-related sustainability disclosures, a critical step for entities navigating the complexities of global sustainability standards.   While the ESRS and ISSB Standards share many common requirements, entities aiming for dual compliance must navigate their nuances. Multinational corporations, in particular, face the challenge of adhering to ESRS in certain jurisdictions and ISSB Standards in others.   A key point of convergence is the definition of materiality in IFRS S1, which echoes the financial materiality concept in ESRS, both centered on investor decision-usefulness. However, ESRS extends this with a double materiality assessment, capturing what is significant for investors and other stakeholders alike.   Read the PDF to know more about the alignment between the ISSB Standards and ESRS.   #SustainabilityReporting #ClimateDisclosures

Around 1,000 companies, investors, regulators and more than key stakeholders from over 50 jurisdictions are meeting at the IFRS Sustainability Symposium taking place in New York City to exchange insights on the introduction of the ISSB Standards globally.    Jurisdictions around the world are already taking steps to adopt or otherwise use the ISSB Standards in their legal and regulatory frameworks to support the provision of globally consistent and comparable sustainability-related information for capital markets.    To support regulators as they design and plan their journey to adopt the ISSB Standards, ISSB Chair Emmanuel Faber opened the IFRS Sustainability Symposium 2024 with the launch of the Preview of the Inaugural Jurisdictional Guide for the adoption or other use of ISSB Standards.    Click here to find out more and download the Preview: https://lnkd.in/e74-VdqP    #IFRSSustainability24 

Great introduction today from the International Sustainability Standards Board (ISSB) chair, Emmanuel Faber, at today's Symposium. He highlighted a few tipping points for action, to ensure adoption of a common sustainability language, which is so critical to activating capital markets to fund sustainable transition. 👉 need to move from fragmentation to one language for pricing sustainability risks and opportunities by financial markets 👉 global capital can then be mobilized to finance local climate resilience and transition 👉 but in doing so, we must avoid going from a voluntary alphabet soup of ratings to a mandatory one... We need data to make good decisions, and as sustainability science is still evolving, it's critical that we agree and align on what data and information we need, how to assure it's quality, and how to use it in a way that drives better choices... As a long-time sustainability practitioner I'm very happy to see such attention to financial impacts of sustainability risks/opportunities, and the ongoing efforts of harmonization and standardization towards one global language.

Interoperability ACHIEVED (on climate) between International Sustainability Standards Board (ISSB) and EFRAG. Huge thanks to both teams for the willingness to converge. And great news for EU and non-EU preparers and users to avoid double reporting work in the EU for incoming firms and outside the EU in all jurisdictions endorsing ISSB standards. Now, ISSB needs to expand its standards toward nature and social, to broaden interoperability to the whole ESG scope.

This welcome interoperability guidance material from EFRAG and the IFRS will be helpful to those trying to navigate new best-practice standards for corporate ESG reporting and disclosure whether voluntarily or as mandated by the CSRD. There has been much talk of alignment and "reducing the reporting burden" but this document (finally) spells out more specifically what that looks like in practice by demonstrating the required additions from both starting points to achieve cross-compliance. As I have previously argued, ESG reporting and disclosure should be an important part of any organisation's sustainability journey, but it is important not to loose focus on 1) using it to showcase your performance to date and 2) highlighting your gaps and next steps both internally and to your wider business stakeholders. Anything which simplifies the process then is welcome! How is your organisation using ESG reporting to drive its sustainability journey? #esg; #corporatereporting;#EFRAG; #IFRS; #ISSB; #ESRS; #sustainability

The ESRS-ISSB Standards Interoperability Guidance launched today in a joint event by EFRAG and IFRS Foundation gives me hope. The document in itself (the structure, the concise content) is the proof at a very high level of the fact that whenever we, humans, manage to listen to each other, understand the position of the other, and think together, we manage to create the greatest of things. In the world of #sustainabilityreporting, the guide is such a great(est) thing. #sustainabilityreporting #sustainabilitystandards #EFRAG #IFRS