Interoperability Guidance on ESRS and ISSB standards

On 2 May 2024, the European Financial Reporting Advisory Group (EFRAG), together with the International Financial Reporting Standards Foundation (IFRS Foundation), published guidance to illustrate the high level of consistency between the IFRS Sustainability Disclosure Standards of the International Sustainability Standards Board (ISSB) and the European Sustainability Reporting Standards (ESRS), including a detailed analysis of consistency in climate-related disclosures.

The guide provides guidance to companies on how to comply with both frameworks (the ESRS, which are mandatory in the EU, and the ISSB standards, which are not yet mandatory in the EU).

The guidance

• describes the corresponding general requirements of both frameworks, including in relation to key concepts such as materiality, presentation and disclosure for non-climate-related sustainability topics; and
• provides information on the alignment of climate-related disclosures and what a company starting with one of the two sets of standards must additionally consider in order to comply with both frameworks.

The guidance can be downloaded from this link.