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TAC Public Meeting July 2024 Paper 6: July general reporting update
AGENDA PAPER 6
Executive summary
| Date | 15 July 2024 |
|---|---|
| Paper reference | TAC-Update-July |
| Project | Monitoring |
| Topic | July General Reporting Update |
Objective of the paper
This paper provides key updates since the update paper provided at the June TAC meeting.
This includes a summary of the ISSB meetings and developments, in addition to jurisdictional developments in relation to the adoption of IFRS Sustainability Disclosure Standards to date.
The information in this paper is provided as at 5 July 2024 and does not include any developments after this date.
Decisions for the TAC
There are no decisions required. This paper is for information only.
Appendices
Appendix 1 - Jurisdictional developments
This paper has been prepared by the Secretariat for the UK Sustainability Disclosure Technical Advisory Committee (TAC) to discuss in a public meeting. This paper does not represent the views of the TAC or any individual TAC member.
Context
1The objective of this paper is to inform the TAC of international and jurisdictional developments in sustainability-related reporting. This paper is for information only and does not ask the TAC to make any decisions.
2The TAC will be provided with an update of UK-specific, international and jurisdictional developments on sustainability-related reporting at each of its meetings.
UK developments
3There is no update this month on UK developments.
International Sustainability Standards Board
4The following paragraphs provide a summary of updates from the International Sustainability Standards Board (ISSB).
June 2024
5The ISSB met on 12 June 2024 to discuss its approach to enhancing the SASB Standards. The ISSB was not asked to make any decisions. Instead, the ISSB's feedback is to be used to guide the staff in providing the ISSB with further analysis and recommendations regarding which SASB Standards enhancements should be prioritised. The ISSB will continue to discuss how to enhance the SASB Standards.
Other ISSB updates
6The IFRS Foundation's annual conference, coinciding with London Climate Action Week, was held in London on 24-25 June 2024. At the conference the ISSB announced its new two-year work plan and published the Feedback Statement on its Consultation on Agenda Priorities.
7The ISSB also announced developments in strategic relationships between ISSB and each of the Transition Plan Taskforce (TPT), GHG Protocol, CDP, Taskforce on Nature-related Financial Disclosures (TNFD) and Global Reporting Initiative (GRI). The developments are as follows:
7.1The IFRS Foundation will assume responsibility for the disclosure-specific materials developed by the TPT, whose disclosure framework and related guidance draws on components identified by the Glasgow Finance Alliance for Net Zero (GFANZ)1. The disclosure-specific materials will be housed on the IFRS Sustainability Knowledge Hub. The ISSB expects to use these materials to develop education materials—ensuring they do not change and are consistent with the requirements in IFRS S2—and over time the ISSB will consider whether to use these materials to enhance the application guidance in IFRS S2.
7.2The IFRS Foundation and GHG Protocol have signed a Memorandum of Understanding to put in place governance arrangements so that the ISSB is actively engaged in updates and decisions made in relation to the GHG Protocol standards and guidance. This includes the appointment of a representative of the ISSB as an observer on the GHG Protocol Independent Standards Board.
7.3As per the significant announcement between the IFRS Foundation and GRI in May 2024, the ISSB and GRI's Global Sustainability Standards Board (GSSB) have committed to jointly identify and align common disclosures that address information needs under the distinct scopes and purposes of their respective standards, for both thematic and sector-based standard-setting.
7.4As set out in the ISSB's Feedback Statement, the ISSB will look at how it might build from relevant initiatives to meet the information needs of investors as it embarks on its research project on biodiversity, ecosystems and ecosystem services. The ISSB has agreed that in undertaking this research, it will consider how to build upon the recommendations of the TNFD published in September 2023.
7.5On June 27th 2024, the International Finance Corporation (IFC), a member of the World Bank Group, and the IFRS Foundation signed a Memorandum of Understanding agreeing their strategic partnership to strengthen sustainable capital markets by improving sustainability and climate reporting in emerging markets and developing economies (EMDEs).
Jurisdictional developments
8The following paragraphs provide a summary of updates (since the last TAC meeting) from other jurisdictions in relation to sustainability-related reporting.
9Appendix 1 contains the summary tables of the different jurisdictional decisions relating to the IFRS Sustainability Disclosure Standards. The tables have been updated since the last TAC meeting to reflect the most recent developments.
Australia
10In its meeting on the 26 June 2024, the Australian Accounting Standards Board (AASB) decided to align its standards as closely as possible to the IFRS Sustainability Disclosure Standards. The AASB draft standards had removed references to 'sustainability' and replaced them with ‘climate' in ASRS 1 (the jurisdictional version of IFRS S1). However, based on feedback during the consultation, the AASB has decided to revert back to 'sustainability-related risks and opportunities' and to make ASRS 1 a voluntary standard.
Brazil
11The consultation by the Comitê Brasileiro de Pronunciamentos de Sustentabilidade (CBPS, Brazilian Committee of Sustainability Pronouncements) closed on 13 June 2024. The consultation was on two exposure drafts for sustainability disclosures standards based on IFRS S1 and IFRS S2.
12The Superintendence of Accounting and Auditing Standards (SNC) of the Brazilian Securities and Exchange Commission (CVM) consultation on mandatory reporting requirements is still open for comment until 11 July 2024.
China
13The Ministry of Finance and People's Republic of China consultation on the exposure draft of Chinese Sustainability Disclosure Standards for Business Enterprises—Basic Standard and Explanation of the Drafting closed on 24 June 2024.
Appendix 1 – Jurisdictional developments
G20 jurisdictions committed to adopting IFRS Sustainability Disclosure Standards
Table 1 summarises the status of G20 jurisdictions publicly committed to adoption or other use of the IFRS Sustainability Disclosure Standards.
Table 1: G20 jurisdictions summary as at 5 July 2024
| Jurisdiction | Current status | Both IFRS S1 & IFRS S2? | Reporting commencing from | Companies in scope |
|---|---|---|---|---|
| African Union: Kenya | Publicly committed | - | - | - |
| African Union: Morocco | Publicly committed | - | - | - |
| African Union: Nigeria | Consultation closed | Both | 2028-2030 | Listed & unlisted |
| African Union: Zimbabwe | Publicly committed | - | - | - |
| Argentina | Publicly committed | - | - | - |
| Australia | Consultations closed | Both | 2024 | Listed & unlisted |
| Brazil | Open consultation | Both | 2026 | Listed |
| Canada | Consultation closed | Both | 2025 | To be confirmed |
| China | Consultation closed | Both | 2026-2030 | Listed & unlisted |
| India | Consultation closed | IFRS S2 only | 2025-2029 | Banking & finance |
| Japan | Open consultation | Both | - | Listed |
| South Korea | Open consultation | Both | 2026-2030 | Listed |
| Turkey | Endorsed | Both | 2024 | Regulated banks & large |
Other jurisdictions committed to adopting IFRS Sustainability Disclosure Standards
Table 2 summarises the status of non-G20 jurisdictions publicly committed to adoption or other use of the IFRS Sustainability Disclosure Standards.
Table 2: Other jurisdictions summary as at 5 July 2024
| Jurisdiction | Current status | IFRS S1 & IFRS S2? | Reporting commencing from | Companies in scope |
|---|---|---|---|---|
| Bangladesh | Endorsed | Both | 2024-2027 | Banking & finance |
| Costa Rica | Endorsed | Both | 2025-2026 | Listed & unlisted |
| Hong Kong | Consultation closed | IFRS S2 only | 2025 | Listed |
| Malaysia | Consultation closed | Both | 2025-2027 | Listed & unlisted |
| Panama | Publicly committed | - | - | - |
| Pakistan | Consultation closed | Both | 2025-2027 | Listed & unlisted |
| Philippines | Consultation closed | Both | 2025 | Listed |
| Singapore | Consultation closed | IFRS S2 only | 2025-2027 | Listed |
| Sri Lanka | Endorsed | Both | 2025 | To be confirmed |
| Switzerland | Open consultation | Both | - | - |
| Taiwan | Publicly committed | - | - | - |
G20 jurisdictions not publicly committed to adopting IFRS Sustainability Disclosure Standards
Table 3 summarises the status of G20 jurisdictions not publicly committed to adoption or other use of the IFRS Sustainability Disclosure Standards.
Table 3: G20 jurisdictions not publicly committed to adopting ISSB as at 5 July 2024
| Jurisdiction | Current status | Topics | Reporting commencing from | Companies in scope |
|---|---|---|---|---|
| European Union (EU) | European Sustainability Reporting Standards (ESRS) & Corporate Sustainability Reporting Directive (CSRD) | Ten topical standards including a general and climate change standard | 2024-2028 | Listed & unlisted |
| Indonesia | Unconfirmed | - | - | - |
| Mexico | Unconfirmed | - | - | - |
| Russia | Unconfirmed | - | - | - |
| Saudi Arabia | Unconfirmed | - | - | - |
| South Africa | Unconfirmed | - | - | - |
| United States of America (USA) | Climate disclosure rules by the US Securities and Exchange Commission (SEC); Californian climate-related disclosure regulations adopted (SB 253 and SB 261) | Climate | SEC: 2025-2033 (currently on hold) | Listed |
| California: 2026 | Listed & unlisted |
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GFANZ has developed a global transition plan framework to support firms undertaking transition planning. The Transition Plan Taskforce has drawn on components of GFANZ's work to develop an aligned set of transition plan disclosure guidance. ↩