6 April – The International Sustainability Standards Board (ISSB) has introduced the Jurisdictional Roadmap Development Tool, a strategic resource designed to assist regulators and policymakers in implementing ISSB’s sustainability reporting standards. This initiative aims to streamline the adoption process and enhance transparency in corporate sustainability disclosures.
Strengthening Sustainability Reporting Frameworks
The ISSB was established in November 2021 during the COP26 climate summit with the goal of developing IFRS Sustainability Disclosure Standards. These standards provide investors and stakeholders with reliable and comparable information on companies’ sustainability-related risks and opportunities.
In June 2023, ISSB introduced its inaugural reporting frameworks, IFRS S1 and IFRS S2, which have since gained traction in over 35 jurisdictions worldwide. Recognizing the complexities of adoption across different regulatory environments, ISSB’s new roadmap tool provides a structured approach for authorities to navigate the integration process.
Key Features of the Roadmap Tool
The Jurisdictional Roadmap Development Tool is designed to address four critical areas in the sustainability reporting adoption process:
- Regulatory Process – Helps authorities determine how ISSB standards can be adopted within their national legal frameworks.
- Scope of Application – Identifies which entities, such as publicly listed companies or large private firms, should comply with sustainability reporting requirements.
- Disclosure Content – Assists in defining the specific sustainability-related disclosures needed to align with ISSB standards.
- Implementation Timelines – Provides guidance on phased adoption strategies to ensure a smooth transition.
To further support regulators, the IFRS Foundation has also released jurisdictional case studies that illustrate different approaches to implementation, ensuring a flexible and adaptable framework.
Driving ESG and Sustainable Finance
ISSB Chair Emmanuel Faber emphasized that the roadmap tool will empower jurisdictions to make informed decisions regarding sustainability reporting. This initiative is expected to drive greater ESG compliance, improve investor confidence, and foster sustainable economic growth by ensuring transparency in corporate environmental and social impacts.
With global momentum building around climate-related and sustainability disclosures, ISSB’s roadmap tool represents a significant step towards harmonizing ESG reporting frameworks across markets. It provides regulators with the necessary structure to align with international standards, helping businesses transition toward more accountable and sustainable operations.
Conclusion
The ISSB’s Jurisdictional Roadmap Development Tool is a pivotal development in the global sustainability reporting landscape. By providing structured guidance on regulatory processes, disclosure requirements, and phased adoption, ISSB aims to make sustainability reporting more accessible and standardized across jurisdictions.
Sources:
ESG Today
