Creating standards to save the planet

December 2021

A new accountancy standard setting body to improve sustainability standards has been created by the IFRS Foundation – the International Sustainability Standards Board (ISSB).

The ISSB is tasked with issuing global standards for corporate disclosures around sustainability, and many believe this will help bring accountants to the forefront of combatting climate change and global warming. The creation of the ISSB, a sister body to the IASB, should also help put sustainability reporting on an equal footing to financial reporting.

ACCA said the formation of the new board was ‘a historic and vital next step in clarity for corporate reporting’. CEO Helen Brand said: “This development means we now have a once in a lifetime opportunity to help shape global reporting standards for the benefit of investors, economies and the public good.”

CIMA felt the move will enable the necessary evolution for corporate reporting standards to take place and ensure corporate reporting remains fit for purpose in the post pandemic world.
Meanwhile, ICAS CEO Bruce Cartwright warned: “Global threats require global solutions. The International Sustainability Standards Board must hit the ground running and deliver the high-quality standards that will serve the public interest.”

Cartwright stressed: “Whilst its initial primary focus must be to look to achieve greater international consistency in relation to reporting on the impact of climate change, it must also look to set consistent requirements in other key areas of sustainability including biodiversity and nature loss.”