The G7 finance ministers and central bank governors has issued a communique following its meeting in Germany this week, calling on the International Sustainability Standards Board (ISSB) to continue its work on sustainability reporting standards beyond climate, such as nature and social issues.
In March, The ISSB launched a consultation on its first two proposed standards. One sets out general sustainability-related disclosure requirements and the other specifies climate-related disclosure requirements.
The ISSB approach of 'climate first and the rest later', seems to have been well received by corporates, who have been critical of the EU's broader approach publishing 14 standards covering all ESG aspects.
The ISSB told Corporate Disclosures in response to the G7 communique, that it will "consult stakeholders in the second half of the year to help determine its next priorities/future work plan".
The G7 communique praised the ISSB for seeking to establish a global baseline of sustainability disclosures.
"We urge the ISSB and national and regional standard-setters as well as other reporting initiatives to actively cooperate in the process of elaborating the baseline with the aim of reaching standards that can be implemented globally," the communique read. "The baseline should be practical, flexible and proportionate and ultimately suitable for small- and medium-size enterprises and enable jurisdictions to implement the baseline and a more extensive approach to supplement the baseline."
The G7 encouraged countries to prepare or continue to prepare the ground for usage of the baseline, "aim to ensure interoperability of national and regional standards and the global baseline in order to minimise fragmentation of reporting requirements, reduce reporting burdens, and enable the availability of consistent sustainability information for users".
In response, Emmanuel Faber, chair of the ISSB, said: "We are encouraged by the G7's endorsement of our work to deliver a global baseline of sustainability disclosures for the capital markets. We reaffirm our commitment to work in close cooperation with jurisdictions and market participants, both on development and adoption of the global baseline and its interoperability with broader jurisdictional requirements."
Companies:ISSB
People:Emmanuel Faber