Changes to ESG reporting

 

As an ESG Consultant in Dubai in 2020, there were several noteworthy consolidations of ESG reporting foundations. The International Financial Reporting Standards (IFRS) Foundation announced the creation of the International Sustainability Standards Board (ISSB) at the COP22 climate conference in November 2020. The IFRS Foundation Trustees, who also manage the International Accounting Standards Board, will be in charge of the ISSB (IASB). The ISSB was established and structured such that the IFRS Substance would treat financial accounting and sustainability accounting equally.

 



As an ESG Consultant in Dubai the Sustainability Accounting Standards Board (SASB) standards, which are shareholder-focused and industry-specific, are expected to be accepted by the ISSB. The ISSB used and combined most of the well-known ESG standards and frameworks while creating the new international standards; thus, they did not start from zero.

 

The ISSB is also consolidating administrations and employees in addition to standards. By June 2021, the Value Reporting Foundation (VRF) and the Climate Disclosure Standards Board (CDSB) will have combined into the IFRS Foundation. The SASB and the International Integrated Reporting Council were succeeded by the VRF (IIRC). When the SASB and IIRC joined in June 2020, the VRF was created.

We believe as a ESG Consultant in Dubai which the fact that the information revealed in ESG reporting is frequently neither highly relevant nor similar across organizations has been a problem. Large public companies frequently employ a variety of standards and frameworks for their ESG strategy. This is so that businesses can select the ESG standard or framework they want to apply to their ESG strategy. Additionally, it is typical for businesses working in the same sector to release their ESG reports at various intervals and in various reporting formats, metrics, and accounting systems. Since the ISSB's standards are projected to be the dominant ESG standards focused on innovativeness value or shareholders, the creation of the ISSB is expected to address these differences and improve the comparability of ESG information.

The VRF advises businesses to succumb ESG data now rather than waiting for the full ISSB guidelines to be published. While the ISSB standards are being developed, companies are urged to continue using the existing ESG strategy.

Existing ESG Frameworks & Standards

We believe as a ESG Consultant in Dubai that three essential ESG standards and outlines used are the Global Reporting Initiative (GRI) Standards, Task Force on Climate-related Monetary Disclosures (TCFD), and SASB Standards.

Location: Dubai - United Arab Emirates

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