Accountancy Europe welcomes the IFRS Foundation’s progress in addressingsustainability reporting. We support creating the International Sustainability Reporting StandardsBoard to set sustainability reporting standards material to enterprise value, within the structures of theIFRS Foundation.
However, we believe that some points we describe hereinafter merit further consideration by the IFRS
Foundation. The International Sustainability Standards Board The International Sustainability Standards Board (ISSB) could mirror the International Accounting Standards Board’s (IASB) work in its inception and work towards consolidating international and coordinating with jurisdictional initiatives. This would help achieve legitimacy of its sustainability reporting standards.
Accountancy Europe supports an interconnected approach to standard-setting. Therefore, we suggest
adding ‘collaborate and consult with the other Board to ensure interconnected standards’ as a role to
both the IASB and ISSB.
However, it is necessary to clarify the remits and scope of works of these boards, particularly on projects that have both financial and sustainability aspects. In addition, we suggest requiring a qualified majority from the ISSB to publish sustainability reporting standards and their respective Exposure Drafts, similarly to the IASB.
Furthermore, we suggest adopting a staged approach to move from a minority of part-time members allowed in the ISSB to only three, as is currently the case for the IASB. We agree that geographical balance is necessary to properly reflect the ambition for global application of sustainability reporting standards and should always be prioritised. In the short-term, the 4 members to be appointed from any region could be selected from regions more advanced and committed to the agenda of the ISSB to speed up the process.
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