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.”

Read more about IFAC’s views.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

IFAC, the International Federation of Accountants, which comprises 180 member and associate organizations and represents over 3 million professional accountants globally, continues its work in support of high-quality audits and effective corporate governance.

In its response to the UK Department for Business, Energy & Industrial Strategy (BEIS) consultation on restoring trust in audit and corporate governance, IFAC emphasized high-level themes that should govern any future reforms, including the importance of a well-functioning ecosystem, a clear focus on audit quality, and an appreciation for the global context.

IFAC’s response draws on its previously published framework for Achieving High-Quality Audits—based on the right process, the right people, the right governance, the right regulation, and the right measurement.

IFAC CEO Kevin Dancy said, “We urge policymakers in the UK and elsewhere to pursue reforms with an unwavering view to enhancing audit quality above all else. As the UK is a leader in audit and corporate governance, any changes enacted there are likely to have an impact beyond its borders. The success of a company, the quality of its reporting, and the quality of its audit all depend on a functioning ecosystem of participants. This is why the holistic approach taken in the Consultation is so important."

See IFAC’s response to the BEIS consultation.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.