Unlocking Synergy: EFRAG-ISSB Joint Event Highlights Interoperability Guidance

Unlocking Synergy: EFRAG-ISSB Joint Event Highlights Interoperability Guidance

By Prathamesh 3 June, 2024

EFRAG and the International Sustainability Standards Board (ISSB) hosted a joint event in Brussels exploring the importance of interoperability between the IFRS Sustainability Disclosure Standards and European Sustainability Reporting Standards (ESRS).

The webinar emphasised the benefits of interoperability between ISSB and ESRS standards. By identifying and aligning common disclosures, companies can reduce duplication and complexity, improving the comparability and usefulness of sustainability information. This collaboration underscores the commitment to establishing a global baseline for sustainability disclosures, supported by international policymakers.

Key highlights from the event included guidance on aligning general requirements and climate-related disclosures between the two standards. The guidance detailed practical support for companies to efficiently comply with both sets of standards and demonstrated the high level of alignment achieved. Specific sections of the guidance provided insights on materiality, presentation, and detailed analysis of climate-related disclosures, making it easier for companies to navigate and apply both ISSB and ESRS standards.

Sue Lloyd, ISSB Vice-Chair, and Chiara Del Prete, EFRAG SR TEG Chair, highlighted the importance of aligning sustainability reporting frameworks to reduce barriers to comparability and enhance decision-useful data. This alignment is expected to simplify the reporting process and ensure consistency across different reporting frameworks.

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