Comparing sustainability reporting proposals Comparing sustainability reporting proposals Comparing sustainability reporting proposals

9 June 2022 (Updated 30 November 2022)¹

Global IFRS Institute | Sustainability reporting

• What’s the issue?
• What’s the impact?
• What’s next? Read our guide on how the proposals compare

Sustainability reporting continues to develop at a fast pace. 2022 saw publication of three sets of proposed standards: from the International Sustainability Standards Board (ISSB), the US Securities Exchange Commission (SEC) and the European Financial Reporting Advisory Group (EFRAG).

The aim of the ISSB^TM 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. 

There is commonality among each of the proposals issued by the ISSB, SEC and EFRAG – including that the TCFD² 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 European Sustainability Reporting Standards (ESRSs) with their wider stakeholder focus.

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

For multi-nationals and others needing to apply multiple frameworks, the challenges would 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 would support companies in applying the standards, as well as drive consistent reporting across jurisdictions – reporting that is internationally comparable, but also meets local needs.

Read our guide (PDF 1 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. Identify what you will be required to report vs what you may choose to adopt.
3. Prepare for fast adoption of all of the requirements that may affect your company, 

See our responses to the consultations from the ISSB, SEC and EFRAG on their respective proposals.

Our dedicated Sustainability reporting page will keep you up to date with the latest developments in this area.

Our Sustainability reporting resource centre provides practical guidance to help you get ready for the new IFRS^® Sustainability Disclosure Standards. These resources capture the latest thinking together with our insight.