In supporting the International Sustainability Standards Board on its clarification to exclude estimates of greenhouse gas emissions relating to derivative instruments and certain investment banking activities from its climate disclosure standard, ABA warned that proposed alternatives to disclose amounts of related activities would be costly and also not provide useful information. ABA addressed its concerns and recommendations in a letter sent today to the ISSB.
ISSB standards, intended to provide a global baseline for sustainability disclosure, are growing in influence among state legislators nationwide, being explicitly referred to within California’s landmark climate disclosure laws.
In addition to California, for example, five states are currently debating similar laws for companies of various sizes. Among other recommendations, ABA also recommended flexibility in how commercial loan exposures and emissions are categorized by industry.