ABA urges proper implementation of new ISSB climate standard

The American Bankers Association last week urged the International Sustainability Standards Board to focus on the development of resources and coordination of industry-specific activities related to implementing recently released corporate disclosure standards on general sustainability and climate-related issues.

The ISSB in May asked for public feedback on potential research and standards-setting projects focusing on sustainability-related risks and opportunities. Already approved as the required disclosure regime in some countries, ISSB standards are expected to have a significant influence on the SEC, which is expected to issue climate-related disclosure rules in the near future.

In its comments, ABA said that given the growing stakeholder interest in the standards, combined with the novel practice of reporting sustainability- and climate-related information relative to other corporate reporting practices, “it would serve the ISSB well to dedicate the necessary resources, time and focus to facilitate the successful implementation of its standards.” The association also said the ISSB should be cautious in leveraging existing initiatives—such as the Corporate Sustainability Reporting Directive—to form the basis for the development of a common standard on nature.

“These frameworks are yet to be market tested and their primary focus may not always align with the provision of financially material information for an investor audience,” ABA said.