Leading ESG Disclosure Standard-Setters to Merge, Publish Prototype Requirements

In response to the worldwide call by investors and regulators for disclosure of environmental, social and governance—as well as climate-specific—information, the Value Reporting Foundation and the Climate Disclosure Standards Board will be consolidated into the newly-formed International Sustainability Standards Board. The London-based ISSB will issue standards that are expected to represent global baselines that will then be applied by agencies and governments in local jurisdictions.

As indicated in the recently-issued FSOC report on climate-related financial risk, ISSB standards will likely be highly influential as the Securities and Exchange Commission prepares to propose ESG disclosure guidance by the end of the year.

Taking material from the VRF’s Sustainability Accounting Standards Board standards and the CDSB standards, the ISSB has also issued a prototype climate-related disclosure standard that is expected to be targeted as the first point of discussion by the ISSB as it commences operations later this year.

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