IFAC Welcomes IFRS Foundation Constitutional Amendments to Establish a New ISSB

Urges global accountancy profession support

Jul 22, 2021 | English

In The Way Forward roadmap toward a global system for reporting on sustainability-related information, IFAC called on the IFRS Foundation to establish a new International Sustainability Standards Board (ISSB). Today we reiterate our support. With its independence, good governance, and track record of due process, the IFRS Foundation is uniquely positioned to establish an independent ISSB within existing IFRS governance—comprised of the Monitoring Board, IFRS Foundation Trustees, and IFRS Advisory Council. The proposed multi-stakeholder expert consultative committee will also be crucial to bringing the right stakeholders to the table in support of the standard-setting activities of the new Board.

IFAC’s response strongly supports the four-point strategy put forth in the Trustees’ proposals:

The ISSB will have an investor focus on enterprise value
The ISSB will prioritize climate-related reporting first
The ISSB will build on the work of existing initiatives
The ISSB will take a Building Blocks Approach

IFAC CEO Kevin Dancey said, “Agility and flexibility in the organizational arrangements supporting the establishment of the new ISSB are needed for the IFRS Foundation to move with speed—making as much progress as possible in the shortest amount of time, while remaining focused on high-quality outcomes. In our analysis, the proposed amendments appropriately incorporate this imperative, which underlies all other criteria for success. As comments from key global stakeholders come in, it is great to see such widespread and broad support for the ISSB initiative.”