In 2024, The IFRS Foundation’s International Sustainability Standards Board (ISSB) will take over responsibility for monitoring the progress of companies’ climate-related disclosures from the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures (TCFD).
The transfer of responsibilities marks a significant step in the ongoing consolidation of sustainability reporting standards, following the publication last month of the ISSB’s global standards for sustainability and climate reporting–IFRS 1 and IFRS 2.
The IFRS Foundation said in a statement that the standards mark “the culmination of the work of the TCFD”, which was established in 2017 at the request of the Financial Stability Board.
The ISSB is working to support effective implementation of IFRS S1 and IFRS S2, which provide for a global baseline of sustainability-related disclosures worldwide, including capacity building and monitoring progress towards the broad use of high-quality disclosures.
Emmanuel Faber, Chair, ISSB, said, “The ISSB has built from and consolidated the market-leading investor-focused sustainability-reporting initiatives to deliver the ISSB Standards, with the TCFD recommendations at the heart of this. As such, the ISSB welcomes the FSB’s request to transfer the TCFD’s monitoring responsibilities to the ISSB from 2024 and the opportunity to build on TCFD’s legacy. This announcement provides yet further clarification of the so-called ‘alphabet soup’ of ESG initiatives for companies and investors.”
The ISSB is currently consulting on future standard-setting priorities beyond these inaugural Standards.
