IFRS Sustainability Disclosure Standards (GDA Revisori Indipendenti Spa)
Business OpportunitiesJanuary 12, 2022 - Gda Revisori Indipendenti Spa
This is a thought leadership article from PrimeGlobal member firm GDA Revisori Indipendenti Spa in Italy. The article looks at the new International Sustainable Standard Board (ISSB) and their incoming Environmental, Social, and Governance (ESG) Standards.
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In 2020, the trustees of the International Financial Reporting Standards (IFRS) Foundation published a consultation document to assess the market’s request for ESG reporting standards (sustainability reporting).
The trustees of the IFRS Foundation asked various stakeholders what their opinion was on the need for global sustainability standards. This consultation defined the possible options for the IFRS Foundation as:
- maintain the status quo;
- facilitate existing initiatives;
- create a Sustainability Standards Board (SSB) and become a standard-setter who works with existing initiatives and builds on their work.
On November 3 2021, the IFRS Foundation announced the creation of a new committee for defining and creating a full set of ESG standards, the International Sustainable Standard Board (ISSB). The aim of these standards is to provide the capital market with information on the risks and opportunities associated with the sustainable development of the economic world. In this way, financial operators will be able to make informed decisions on the sustainability of companies.
The ISSB will develop these ESG principles in relation to the IFRS accounting principles. The ISSB also consolidates three previous initiatives: Sustainability Accounting Standards Board (SASB), International Integrated Reporting Council (IIRC) and Climate Disclosure Standard Board (CDSB). This means that the ISSB can count on an important heritage of work from the start. In particular, it will immediately use the industry-specific ESG standards created by the SASB.
The ISSB will also develop IFRS Sustainability Disclosure Standards, including disclosure requirements that address the impacts of companies on sustainability issues relevant to assessing corporate value and making investment decisions.
The ISSB will also work with the International Accounting Standards Board (IASB) on these standards. The two Boards will be independent of each other but will be connected and collaborate in order to ensure the complementarity of accounting and information standards.
Once the standards have been formally enacted, companies that, for the purposes of preparing the financial statements and the sustainability report, adopt international accounting and information standards will be able to be fully evaluated by investors and capital providers.
Gda Revisori Indipendenti Spa
GDA Revisori Indipendenti Spa is an audit company that was incorporated on March 24, 1987. GDA concentrates it's activities on auditing services and accounting organisation, and for this reason, we guarantee a maximum degree of independence with regard to our own clients. The head office is located in Milan, while five secondary offices are operating in Rome, Piacenza, Florence, Treviso and Pescara. Continuous monitoring of marketing and legal framework and our never-ending effort to adapt our structure and our services to the clients needs, allow us to offer our clients a wide range of services.Learn more