The government also introduced transition plan requirements for companies to meet the UK’s 2050 net zero target.
By Paul A. Davies, Michael D. Green, and James Bee
On 3 November 2021, the International Financial Reporting Standards (IFRS) Foundation Trustees Chair, Erkki Liikanen, announced the long-awaited formation of the International Sustainability Standards Board (ISSB). The ISSB aims to address to one of the key issues that companies and investors have faced in relation to environmental, social, and governance (ESG)-related corporate reporting over recent years — the wide variety of different reporting frameworks and a lack of an authoritative market leader.
Liikanen also announced the consolidation of two of the leading sustainability disclosure organisations into the ISSB by June 2022, and introduced prototype climate and general disclosure requirements (the Prototypes), which the ISSB will consider as the basis of its work.