Launch of ISSB’s global sustainability disclosure norms to improve corporate transparency, attract investments

Name: World likely to breach 1.5°C global warming threshold sooner than we think, meteorologists warn
Uploaded: 2023-06-26T09:00:11.000Z
Duration: 2 min 34 s
Description: World likely to breach 1.5°C global warming threshold sooner than we think, meteorologists warn

The ISSB’s rules aim to meet rising demand for consistent understanding of how climate change and sustainability factors affect companies’ prospects

As the ISSB does not have the right to mandate companies to adopt the standards, it has left it to regulators to decide

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The ISSB standards’ launch comes as global efforts to contain global warming to 1.5 degrees Celsius to avert disastrous social and economic consequences is falling short of the stated ambition. Photo: AFP

Eric Ng

Published: 5:00pm, 26 Jun 2023

The International Sustainability Standards Board (ISSB) has launched two sets of disclosure standards for companies on climate and sustainability-related risks and opportunities to make the information globally comparable and enhance capital allocation efficiency.

The ISSB, set up by the international financial reporting standards body IFRS Foundation during the COP26 global climate summit in Glasgow in 2021, published the standards on Monday after receiving 1,400 responses during a three-month consultation exercise.

The standards aim to set a global baseline for disclosures to meet rising demand for consistent understanding of how climate change and sustainability factors affect companies’ prospects, the ISSB said in a statement.

“The ISSB standards have been designed to help companies tell their sustainability story in a robust, comparable and verifiable manner,” said ISSB chair Emmanuel Faber. “We have consulted closely with the market to ensure the standards are proportionate and will result in disclosures that are relevant for investment decision-making.”

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World likely to breach 1.5°C global warming threshold sooner than we think, meteorologists warn

The standards’ launch comes as global efforts to contain global warming to 1.5 degrees Celsius to avert disastrous social and economic consequences are falling short of their stated ambition. The world was headed for 2.5 degrees of warming above pre-industrial levels by 2100 even if all committed policies are fully implemented, the United Nations said in a report last October.