The IIF submitted a comment letter to the IFRS Foundation Exposure Draft on Proposed Targeted Amendments to the IFRS Foundation Constitution to Accommodate an International Sustainability Standards Board to Set IFRS Sustainability Standards.

In the letter, the IIF expresses its support for the IFRS Foundation’s initiative in the field of sustainability report and, more specifically, welcomes the IFRS Foundation’s plan to create an International Sustainability Standards Board (ISSB) as a global standard setter for sustainability reporting. 

In the letter, we welcome the IFRS Foundation’s intention to build upon the work of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). We also appreciate that the IFRS Foundation will consider the prototype proposed by the alliance of leading sustainability and integrated reporting organizations, including CDP, Climate Disclosure Standards Board (CDSB), Global Reporting Initiative (GRI), and the Value Reporting Foundation.

We welcome the IFRS Foundation’s decision to introduce a ‘building blocks’ approach by providing a globally consistent and comparable sustainability reporting baseline that still leaves flexibility to go beyond and capture wider sustainability impacts. We acknowledge the IFRS Foundation’s decision to take an investor focus for enterprise value as well as an (initial) focus on climate-related information; however, we do express our view that, in due course, covering ESG matters comprehensively will be key to achieving the greatest possible impact.

This letter builds on our IIF response letter to the IFRS Foundation Consultation Paper on Sustainability Reporting.