CDSB welcomes IFRS statement on sustainability standards

A welcome pace as IFRS Trustees take further steps towards a global approach to sustainability standards.

Continuing at a refreshing pace, the IFRS Foundation Trustees today released their views on the strategic direction of a potential new sustainability standards board, setting out the next planned steps in their work as they continue deliberations to a possible announcement in advance of Novembers COP26 in Glasgow.

“The trajectory outlined in today’s IFRS Statement confirming next steps in the Trustees strategic direction follows a familiar path to the evolution of CDSB since it's inception in 2007, which started with financially material climate risk reporting and then moved to cover environmental and social issues more recently ” notes Ravi Abeywardana, CDSB Technical Director, “ and as such with our close alignment to both IFRS and TCFD are well placed to support the Trustees in developing a globally consistent and comparable baseline for reporting sustainability information”.

Given the urgent demand and need the continued momentum of the IFRS Trustees is welcome, along with the strategic direction of a new board that will build in the well-established work of the leading standards setters focussed on enterprise value, including the recent climate prototype released by the Group of 5 standards setters in December 2020.

“Often we see companies ‘down tools’ so to speak when something new is being proposed, waiting to see what it will recommend. This announcement is a clear signal to the report preparers that any future global standard will address material climate related financial risks and opportunities and build off existing frameworks and standards such as CDSB and TCFD. We are already at risk from missing key deadlines for keeping climate emissions below 1.5 degrees and meeting the ambitious goals of the SDG’s, and don’t have the luxury of time to stop and wait for the IFRS Foundation and the Sustainability Standards Board (SSB) – I suggest all listed companies make sure they are preparing relevant climate and environmental information in accordance with the existing financially material standards in preparation for a global approach under the SSB” states CDSB’s Managing Director, Mardi McBrien.

CDSB looks forward to responding to the upcoming consultation on the proposed changes to the Foundations constitution and remains ready to support the IFRS Foundation and Trustees with this important work and will continue to work with the Group of 5 in harmonization efforts.