The ISSB has issued a ‘jurisdictional rationale guide’, setting out the benefits of adopting or using its sustainability reporting standards (IFRS S1 and S2).
Based on engagements with international organisations and jurisdictions, the report highlights three commonly cited advantages of ISSB adoption:
- Informing investors’ capital-allocation decisions
- Enhancing efficiencies for companies
- Jurisdictional benefits – supporting policy goals, enhancing sustainable finance architectures, and improving global trade competitiveness
The international standard-setter has also published a ‘jurisdictional rationale tool’, which sets out the key considerations and decision-points for jurisdictional authorities that are considering adopting IFRS S1 and S2.