Looking forward - The ISSB’s next focus for sustainability reporting

The International Sustainability Standards Board (ISSB) recently announced its intention to commence research into its next two areas of focus:

• Biodiversity, ecosystems and ecosystem services
• Human capital.

Informed by recent consultation on priorities, this process will allow the ISSB to build on its global baseline of sustainability-related financial disclosures and ultimately support organisations to take a step closer to meeting the requirement of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information in disclosing all sustainability-related risks and opportunities.

The project is intended to collate and understand the common information required by report users (namely investors), as well as the reasonable impacts of the identified risks and opportunities on a company’s performance.

Existing frameworks in these areas are expected to inform the process, with the ISSB likely following a similar process to that of developing IFRS S1 and IFRS S2 Climate-related Disclosures. Key considerations already under the ISSB’s jurisdiction are the Sustainability Accounting Standards Board (SASB) Standards and Climate Disclosure Standards Board (CDSB) guidance.

Externally, the work of the Task Force on Nature-related Financial Disclosures (TNFD), which is strongly aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework IFRS S2 is built on, is expected to play a part. Unsurprisingly, the TNFD is supportive of the announcement, and playing a role in shaping this work. Undoubtedly, the Global Reporting Initiative’s (GRI) updated Biodiversity Standard, GRI 101: Biodiversity 2024, issued in January 2024, will also contribute to the process.

More information

Please refer to the ISSB website for more information.

How BDO can help

If your organisation is looking to understand what this might mean for you, our sustainability reporting experts can help.

Contact us today.