Global ESG reporting standards are settling, with final days of comment periods at hand
A consultation by the ISSB (the International Sustainability Standards Board, launched in November at the UN’s COP26), on corporate sustainability reporting, closes this Friday July 29th. Its two “Exposure Drafts” (EDs) address companies’ (1) disclosure of sustainability-related financial information and (2) climate-related disclosures. Among the comments submitted are those from EU financial regulator ESMA, which recommended that the ISSB consult closely with the separate GRI standards (established by the Global Sustainability Standards Board) as well as with EFRAG (the European Financial Reporting Advisory Group).
For its part, EFRAG has launched a public consultation for its own EDs, which ends on Monday August 8th. These EDs relate to proposed European Sustainability Reporting Standards (ESRS), mandated under the EU’s proposed Corporate Sustainability Reporting Directive (CSRD). (Last month, the European Parliament and Council reached a provisional political agreement on the CSRD, under which corporate sustainability reporting requirements will be phased-in starting on 1 January 2024.) Recently, ESMA’s Securities Markets Stakeholder Group provided advice to ESMA on EFRAG’s consultation, which may offer insight on how these disclosure standards could change before becoming final.