The International Sustainability Standards Board (ISSB) has published the IFRS Sustainability Disclosure Taxonomy (ISSB Taxonomy), fulfilling a promise to enable investors and other capital providers to analyse sustainability-related financial disclosures efficiently. Use of the taxonomy by companies will enable investors to search, extract and compare sustainability-related financial disclosures as the ISSB continues to establish its global baseline of standards, it said. The taxonomy reflects IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, and IFRS S2 Climate-related Disclosures and accompanying guidance. It was developed mainly to support dialogue between companies and investors, and neither introduces new requirements nor affects compliance with the standards. In addition, it was designed to be consistent with the IFRS Accounting Taxonomy, so companies can provide a holistic digital financial reporting package to investors. “As jurisdictions around the world are considering the adoption or other use of ISSB standards, the publication of the ISSB Taxonomy only a few months after the effective date of our inaugural standards is critical to support capital market transparency and efficiency, and…to digitally process sustainability-related financial disclosures,” said ISSB Chair Emmanuel Faber. In May, the IFRS Foundation will publish a webcast to further expand on the role of the ISSB Taxonomy and its benefits.
