There is a great deal of work going on to align the various sustainability reporting frameworks, which will improve consistency and comparability in the disclosures provided by organisations. It is significant that the International Organization of Securities Commissions (IOSCO) has endorsed these ISSB standards, meaning that mandatory adoption at a global level is on the way. When IOSCO’s endorsement was announced, the Chair of the IFRS Foundation stated: “ Financial statements and sustainability disclosures were once separate entities. Today, they are two sides of the same coin.
This stresses how interconnected financial reporting and sustainability reporting have become. There are local regulations too. For example, the EU has endorsed European Sustainability Reporting Standards (ESRS), and the regulators are looking to align these reporting standards with the ISSB standards as far as possible. In the EU, as part of the Corporate Sustainability Reporting Directive (CSRD), which is expected to impact 49,000 reporting entities, there is also a requirement for limited assurance on sustainability reporting for the largest companies from 2024.
SUSTAINABILITY ASSURANCE | THE REPORTING FRAMEWORKS
12
Made with FlippingBook Digital Publishing Software