Global sustainability disclosure standards for companies to provide to investors were unveiled yesterday by the International Sustainability Standards Board (ISSB).
The standards tie companies’ financial statements to report on their global sustainability and climate impact. By including climate disclosure standards in companies’ financial statements, “we are opening the box and the horizons” of those statements, ISSB Chairman Emmanuel Faber said.
The two standards “will help to improve trust and confidence in company disclosures about sustainability to inform investment decisions,” the ISSB said in a press release.
Investors welcomed the sustainability disclosure standards, saying they provide a critical common language on sustainability disclosure.
ISSB Investor Advisory Group leaders said the data generated by the standards will support price discovery and capital formation, while also helping companies communicate sustainability data to their investors.
ISSB officials will meet in July to set an effective date for the voluntary standards.
Requirements will include disclosures of greenhouse gas emissions—including Scope 3 financed emissions—and scenario analysis of climate-related risks.
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