Sustainability reporting continues to develop at a fast pace. Today, three sets of proposed standards are open for comment: from the International Sustainability Standards Board (ISSBTM Board), the US Securities Exchange Commission (SEC) and the European Financial Reporting Advisory Group (EFRAG). 

The aim of the ISSB Board proposals is to create a global baseline for investor-focused sustainability reporting that local jurisdictions (e.g. the US and the EU) can build on. 

Over the coming weeks, companies have the opportunity to help shape the future of sustainability reporting.

Mike Boonen

Partner | Audit

KPMG in Belgium


What’s the issue?

There is commonality among each of the proposals issued by the ISSB Board, SEC and EFRAG – including that the TCFD1 framework forms a shared input.

However, there are also areas where they are not aligned, which may create practical challenges for companies trying to design coherent and consistent reporting that meets the needs of both global investors and jurisdictional requirements.

In addition to points of detail, this includes the greater scope and scale of the EFRAG proposals with their wider stakeholder focus.

What’s the impact?

The proposals are ambitious and would have a significant impact on companies.

For multi-nationals and others needing to apply multiple frameworks, the challenges will be magnified if the requirements are not compatible. A key practical consideration is aligning calculation methodologies – minimising the different data requirements.

Achieving a global baseline will support companies in applying the standards, as well as drive consistent reporting across jurisdictions – reporting that is internationally comparable, but also meets local needs.

What’s next?

Read our guide (PDF 1.4 MB) to gain further insight on some of the practical challenges you may encounter as you prepare for the new sustainability reporting standards.

  1. Understand where similarities and differences exist between the proposals that may affect you.
  2. Share your views with the ISSB Board, EFRAG and the SEC.
  3. Identify what you will be required to report vs what you may choose to adopt.
  4. Prepare for fast adoption, which may be soon after the requirements are finalised.

1 Task Force on Climate-related Financial Disclosures

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