Preparations continue for international sustainability reporting board

The movement toward global sustainability accounting standards took a step forward Monday when the IFRS Foundation trustees announced the formation of a new working group.

By the end of September, the trustees are scheduled to decide whether to form an international sustainability reporting standards board under the IFRS Foundation’s governance.

The new working group will undertake technical preparations for the proposed new board and will seek to accelerate convergence in global sustainability reporting standards focused on enterprise value. The working group’s technical recommendations will provide a potential basis for the proposed new board to build on existing initiatives to develop standards for climate-related reporting and other sustainability topics.

Chaired by the IFRS Foundation with participation from the International Accounting Standards Board, the working group will include participants from:

• The Financial Stability Board’s Task Force on Climate-Related Financial Disclosures.
• The Value Reporting Foundation, which represents the intended merger of the International Integrated Reporting Council and the Sustainability Accounting Standards Board.
• The Climate Disclosure Standards Board.
• The World Economic Forum.
• The International Organization of Securities Commissions, as an observer.

The working group will also work closely with the Global Reporting Initiative and CDP.

— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.