Collaboration and coordination are also important between sustainability disclosure initiatives and financial accounting standard-setting.Ī globally consistent, comparable, reliable, and assurable corporate reporting system is indispensable in providing all stakeholders with a clear and accurate picture of an organisation’s ability to create sustainable value over time. However, current draft standards and initiatives are not technically compatible in terms of concepts, terminologies, and metrics.Īs these proposed sustainability-related disclosure requirements are refined and finalised, we call for each initiative to pointedly avoid regulatory and standard setting fragmentation by aligning key concepts, terminologies, and metrics on which disclosure requirements are built.Ī coordinated approach is needed to provide the comprehensive global baseline of sustainability disclosures needed by capital markets. Significant efforts by the International Sustainability Standards Board (ISSB), the US Securities and Exchange Commission (SEC), and the European Commission together with the European Financial Reporting Advisory Group (EFRAG), all aim to address the need to enhance and evolve corporate reporting to include and consider sustainability information.Īs financial market participants representing over 200 companies, 4,902 investors with US $121.3 trillion in assets under management, and more than 3 million professional accountants – WBCSD (World Business Council for Sustainable Development), PRI (Principles for Responsible Investment), and IFAC (International Federation of Accountants) collectively welcome and support these efforts. Financial market regulators should seize this historical and fast-closing window of opportunity to get it right by ensuring compatible standards. Investors, companies, and the accountancy profession all benefit from simplicity and alignment, serving the public interestĬlear, comprehensive and comparable disclosure of sustainability-related information is one of the foundational building blocks of a well-functioning global financial system.
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