"The 2023's new and the fresh": the International Sustainability Disclosure Standards
DOI:
https://doi.org/10.46793/ICEMIT23.205ZKeywords:
sustainability reporting, ISSB, IFRS Sustainability Disclosure StandardsAbstract
The manuscript briefly overviews the newly published ISSB Sustainability Disclosure Standards in June 2023. Critical matters leading to the historical publication of the ISSB Standards are elaborated, including the IFRS's International Sustainability Standards Board (ISSB) positioning in the ecosystem for sustainability reporting in ESG accordance. The Board published two groundbreaking International Sustainability Disclosure Standards. We elaborate on a few fundamental concepts behind the ISSB Standards and their general requirements. Nevertheless, the awareness of the ISSB Standards and its disclosure requirements is at an early stage. The latter could have an impact on its worldwide endorsement. It is challenging for different jurisdictions to embed sustainability reporting into their reporting system.
References
Abela, M. (2022). "A new direction? The "mainstreaming" of sustainability reporting", Sustainability Accounting, Management and Policy Journal, 13(6), 1261–1283. https://doi.org/10.1108/SAMPJ-06-2021-0201
Abhayawansa, S. (2022). Swimming against the tide: Back to single materiality for sustainability reporting. Sustainability Accounting, Management and Policy Journal, 13(6), 1361–1385. https://doi.org/10.1108/SAMPJ-07-2022-0378
Accountancy Europe. (2019). Interconnected Standard Setting for Corporate Reporting. https://www.accountancyeurope.eu/wp-content/uploads/191220-Future-of-Corporate-Reporting.pdf
Accountancy Europe. (2020). Follow-up Paper: Interconnected Standard Setting for Corporate Reporting. https://www.accountancyeurope.eu/wp-content/uploads/200615-Follow-up-paper-Interconnected-standard-setting.pdf
Adams, C. A., & Mueller, F. (2022). Academics and policymakers at odds: the case of the IFRS Foundation Trustees' consultation paper on sustainability reporting. Sustainability Accounting, Management and Policy Journal, 13(6), 1310–1333. https://doi.org/10.1108/SAMPJ-10-2021-0436
Afolabi, H., Ram, R., & Rimmel, G. (2023). Influence and behaviour of the new standard setters in the sustainability reporting arena: implications for the Global Reporting Initiative's current position. Sustainability Accounting, Management and Policy Journal, 14(4), 743–775. https://doi.org/10.1108/SAMPJ-01-2022-0052
Albu, N., Albu, C. N., Dumitru, M., & Dumitru, V. F. (2013). Plurality or convergence in sustainability reporting standards? Amfiteatru Economic Journal, 15(7), 729–742.
Ali, I., Fukofuka, P. T., & Narayan, A. K. (2023). Critical reflections on sustainability reporting standard setting. Sustainability Accounting, Management and Policy Journal, 14(4), 776–791. https://doi.org/10.1108/SAMPJ-01-2022-0054
Baboukardos, D., Gaia, S., Lassou, P., & Soobaroyen, T. (2023) The multiverse of non-financial reporting regulation. Accounting Forum, 47(2), 147–165. https://doi.org/10.1080/01559982.2023.2204786
Bushman, R., & Landsman, W. R. (2010). The pros and cons of regulating corporate reporting: A critical review of the arguments. Accounting and Business Research, 40(3), 259–273. https://doi.org/10.1080/00014788.2010.9663400
CDP, Climate Disclosure Standards Board (CDSB), the Global Reporting Initiative (GRI), the International Integrated Reporting Council (IIRC), the Sustainability Accounting Standards Board (SASB). Statement of Intent to Work Together Towards Comprehensive Corporate Reporting. Summary of Alignment Discussions among Leading Sustainability and Integrated Reporting Organisations CDP, CDSB, GRI, IIRC and SASB. (2020). https://integratedreporting.org/resource/statement-of-intent-to-work-together-towards-comprehensive-corporate-reporting/
Christensen, H. B., Hail, L., & Leuz, C. (2021). Mandatory CSR and sustainability reporting: economic analysis and literature review. Review of Accounting Studies, 26, 1176–1248. https://doi.org/10.1007/s11142-021-09609-5
Clarkson, P. M., Fang, X., Li., Y., & Richardson, G. (2013). The relevance of environmental disclosures: Are such disclosures incrementally informative? Journal of Accounting and Public Policy, 32(5), 410–431. https://doi.org/10.1016/j.jaccpubpol.2013.06.008
Climate Disclosures Standards Board (CDSB). (2023). Consolidation of CDSB. https://www.cdsb.net/
de Villiers, C., & Dimes, R. (2023). Will the formation of the International Sustainability Standards Board result in the death of integrated reporting? Journal of Accounting & Organizational Change, 19(2), 279–295. https://doi.org/10.1108/JAOC-05-2022-0084
Department for Business, Energy, & Industrial Strategy (United Kingdom). (2020, October). Frameworks for Standards for Non-Financial Reporting Final Report. https://www.gov.uk/government/publications/frameworks-for-standards-for-non-financial-reporting
Durocher, S., Fortin, A., & Côté, L. (2007). Users' participation in the accounting standard-setting process: A theory-building study. Accounting, Organisations and Society, 32(1–2), 29–59. https://doi.org/10.1016/j.aos.2006.03.004
Eccles, R. G. (2022). A Personal Message To The Cantankerous Critics Of The International Sustainability Standards Board. Forbes. https://www.forbes.com/sites/bobeccles/2022/02/19/a-personal-message-to-the-cantankerous-critics-of-the-international-sustainability-standards-board/?sh=9eaba9b5054a
European Financial Reporting Advisory Group (EFRAG). (2021). Final Report: Proposals for a Relevant and Dynamic EU Sustainability Reporting Standard-Setting. European lab—Project Task Force on Preparatory Work for the Elaboration of Possible EU Non-financial Reporting Standards. https://www.efrag.org/Assets/Download?assetUrl=%2Fsites%2Fwebpublishing%2FSiteAssets%2FEFRAG%2520PTF-NFRS_MAIN_REPORT.pdf
Ho, V. H. (2017). Comply or explain and the future of nonfinancial reporting. Lewis & Clark Law Review, 21, 317–355.
Hoogervorst, H., & Prada, M. (2015). Working in the Public Interest: The IFRS Foundation and the IASB. https://www.ifrs.org/content/dam/ifrs/about-us/who-we-are/working-in-the-public-interest.pdf
IFRS Foundation. (2020). Consultation Paper on Sustainability Reporting. https://www.ifrs.org/content/dam/ifrs/project/sustainability-reporting/consultation-paper-on-sustainability-reporting.pdf
IFRS Foundation. (2022). ISSB at COP27: Financial Reporting Council of Nigeria to adopt IFRS Sustainability Disclosure Standards. https://www.ifrs.org/news-and-events/news/2022/11/issb-at-cop27-frc-of-nigeria-to-adopt-ifrs-sustainability-disclosure-standards/
IFRS Foundation. (2023a). About the International Sustainability Standards Board. https://www.ifrs.org/groups/international-sustainability-standards-board/
IFRS Foundation. (2023b). Integrated Reporting Framework. https://www.ifrs.org/issued-standards/ir-framework/
IFRS Foundation. (2023c). SASB Standards. https://www.ifrs.org/issued-standards/sasb-standards/
IFRS Foundation. (2023d). ISSB describes the concept of sustainability and its articulation with financial value creation, and announces plans to advance work on natural ecosystems and just transition. https://www.ifrs.org/news-and-events/news/2022/12/issb-describes-the-concept-of-sustainability/
IFRS Foundation. (2023e). ISSB: Frequently Asked Questions. https://www.ifrs.org/groups/international-sustainability-standards-board/issb-frequently-asked-questions/
IFRS Foundation. (2023f). IFRS Foundation announces International Sustainability Standards Board, consolidation with CDSB and VRF, and publication of prototype disclosure requirements. https://www.ifrs.org/news-and-events/news/2021/11/ifrs-foundation-announces-issb-consolidation-with-cdsb-vrf-publication-of-prototypes/
IFRS Foundation. (2023g). Project Summary. IFRS Sustainability Disclosure Standards. https://www.ifrs.org/content/dam/ifrs/project/general-sustainability-related-disclosures/project-summary.pdf
IFRS Foundation. (2023h). IFRS Sustainability Disclosure Taxonomy. https://www.ifrs.org/projects/work-plan/ifrs-sustainability-disclosure-taxonomy/
IFRS Foundation. (2023i). ISSB Consultation on Agenda Priorities. https://www.ifrs.org/projects/work-plan/issb-consultation-on-agenda-priorities/
IFRS Foundation. (2023j). The need for a global baseline for capital markets. https://www.ifrs.org/use-around-the-world/why-a-global-baseline-for-capital-markets/
IFRS Foundation. (2023k). IFRS Sustainability Disclosure Standards endorsed by international securities regulators. https://www.ifrs.org/news-and-events/news/2023/07/issb-standards-endorsed-by-iosco/
IFRS Foundation. (2023l). Effects Analysis. IFRS Sustainability Disclosure Standards. https://www.ifrs.org/content/dam/ifrs/project/general-sustainability-related-disclosures/effects-analysis.pdf
IFRS Foundation. (2023m). IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information. https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/ifrs-s1-general-requirements.html/content/dam/ifrs/publications/html-standards-issb/english/2023/issued/issbs1/#standard
IFRS Foundation. (2023n). Who uses IFRS Accounting Standards? https://www.ifrs.org/use-around-the-world/use-of-ifrs-standards-by-jurisdiction/
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 International Scientific Conference on Economy, Management and Information Technologies
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.