ISSB and global standardisation of sustainability reporting

Abstract

Chapter 13 explores the role of the International Sustainability Standards Board (ISSB) in shaping global sustainability reporting standards, focusing on IFRS S1 General Requirements for Sustainability-Related Financial Disclosures and IFRS S2 Climate-Related Disclosures. It begins by outlining the need for global standardisation, emphasising the ISSB's goal of creating a unified reporting framework to enhance transparency and comparability. The chapter then delves into the ISSB's relationship with existing frameworks, such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the European Sustainability Reporting Standards (ESRS), addressing efforts to align financial materiality-focused ISSB standards with impact materiality approaches. Furthermore, the chapter discusses implementation challenges, including data collection complexities, interoperability issues with regional standards like ESRS and critiques of financial materiality emphasis. The chapter concludes by evaluating the effectiveness, limitations and future trajectory of the ISSB's sustainability reporting framework within the evolving global regulatory landscape.