A new global ESG standard! ISSB publishes "General Requirements for Sustainability-Related Financial Information Disclosures IFRS S1" and "Climate-Related Disclosures IFRS S2" standards
概要
On June 26, after more than a year of global opinion collection and revision, the International Sustainability Standards Board (ISSB) officially released "International Financial Reporting Sustainability Disclosure Standard No. 1: General Requirements for Disclosure of Financial Information Related to Sustainability abilityable Development" IFRS S1" (hereinafter referred to as: General Requirements) and "International Financial Reporting Standards for Sustainable Disclosure No. 2: Climate-related Disclosures IFRS S2" (hereinafter referred to as: Climate-related Disclosures) are two ESG disclosure standards.
ISSB Chairman Emmanuel Faber will present the standard in a keynote address at the 2023 IFRS Foundation Annual Meeting later today. In addition, the ISSB publishes accompanying guidelines, rationale for conclusions, effects analysis, project summaries, and feedback st aments. The official release of These Two sustainability-related disclosure guidelines will come into effect on January 1, 2024.
The two documents can be downloaded after registration on the IFRS official website. The download link is: https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/
Overview of the core content of "General Requirements IFRS S1"
"International Financial Reporting Standards on Sustainability Disclosure No. 1 - General Requirements for Disclosure of Sustainability-related Financial Information" proposes a set of core content (Core Content) for the disclosure of sustainability-related financial information, and determines the comprehensiveness of sustainability- related financial information. benchmark. Its objective is to require an entity to disclose information about its material sustainability-related risks and opportunities that would help key users of general purpose financial reporting assess the value of the business and make decisions about whether to provide resources to the entity.
The standard stipulates that a reporting entity should disclose material information about all material sustainability-related risks and opportunities it faces. The assessment of materiality should be made when the information users of general purpose financial reports need to assess the value of the enterprise is available. An entity's general purpose financial reporting should include a complete, neutral and accurate description of its sustainability-related financial information.
The standards require that the sustainable development-related financial information disclosed by the entity should be centered on the four core contents of governance, strategy, risk management, indicators and objectives used to measure, monitor and manage major sustainability- related risks and opportunities. This approach is consistent with the TCFD four-element framework and extends the TCFD framework to all risks and opportunities related to sustainable development.
Overview of the core content of IFRS S2 on climate-related disclosures
IFRS 2 – Climate-related Disclosures was developed in response to requests from users of general-purpose financial reports for more consistent, complete, comparable and verifiable information.
The goal of this standard is to require the entity to disclose information about its major climate-related risks and opportunities, so that users of general-purpose financial reports can: 1) evaluate the impact of climate-related material risks and opportunities on the entity's corporate value; 2) Understand how the entity uses resources and the corresponding inputs, activities, outputs, and results to support the entity's response measures and management strategies for major climate-related risks and opportunities; 3) Assess the entity's adjustment of its planning for major climate-related risks and opportunities , business model and operational capabilities.
The standard requires entities to apply the standard when preparing and disclosing climate-related information in accordance with IFRS 1 - General Requirements for Sustainability-Related Financial Disclosures. The standard basically refers to the TCFD framework, requiring entities to disclose cl imate-related financial information from the perspectives of governance, strategy, risk management, indicators and goals.And based on the industry classification in the SASB industry standard, it simultaneously provides disclosure indicators that include additional requirements for different industries.The standard also pro videos consistent metrics and standardized narrative disclosures.
The Impact of the Two Documents on ESG Standards in China
On November 3, 2021, at the COP26 conference, the International Financial Reporting Standards Foundation (IFRS Foundation) officially announced the establishment of the International Sustainability Standards Board (ISSB), which is the same as the International Accounting Standards Board (IASB). The The foundation is organized to develop a comprehensive global benchmark for sustainable development disclosure standards in the public interest to meet the information needs of global investors (investors) on climate and other sustainable development matters.
Previously, when the ISSB issued a draft of the new standard for comments, it was clearly stated, "These proposals are in response to the needs of the main users of general-purpose financial reports (investors, lenders and other creditors), who need more consistent and complete , comparable and verifiable sustainably relevant financial information to assist them in assessing the entity’s business value”. It can be seen that the establishment of the new standard is to supplement the information contained in the entity's financial statements to make it more complete, so that investors can make decisions on whether to provide resources to the entity.
On June 19, 2023, at the unveiling class of the be use office of the interior finance reporting state, zhu zhongming, Vice minister of finance Stated That China Foundts the Works of the Foundation and the Formulation of International Sustainable Disclosure Standards.
Article source: Sina News
