ISSB to Commence Research Projects About Risks and Opportunities Related to Nature and Human Capital

ISSB to Commence Research Projects About Risks and Opportunities Related to Nature and Human Capital

By Prathamesh 2 May, 2024
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The International Sustainability Standards Board (ISSB) will commence projects to research disclosure about risks and opportunities associated with:
– biodiversity, ecosystems and ecosystem services
– human capital.

The research projects will focus on the common information needs of investors in assessing whether and how these risks and opportunities could reasonably be expected to affect a company’s prospects.

As with the approach to the ISSB’s inaugural Standards, the ISSB will look at how it might build from relevant pre-existing initiatives. This includes those already under its purview—the SASB Standards and CDSB guidance—and, additionally, relevant aspects of the work of the Task Force on Nature-related Financial Disclosures (TNFD).

Disclosure of material information about all sustainability-related risks and opportunities is already required under IFRS S1, with companies asked to refer to sources of guidance—including the SASB Standards—to provide appropriate disclosures beyond climate. These projects will enable the ISSB to embark on its own standard-setting work in key areas needed to establish more specific disclosures to build out the global baseline of sustainability-related financial disclosures.

Through the research projects, the ISSB will assess and define the limitations with current disclosure in these areas, identifying possible solutions and decide whether standard setting is required.

To find out more details please visit : https://www.ifrs.org/