Share

Centri’s Mihir Jhaveri Featured in Accounting Today: Inside the ISSB

Mihir Jhaveri, Managing Director and ESG Practice Leader, is featured in an article by Accounting Today: Inside the ISSB.

The International Sustainability Standards Board (ISSB) is working towards establishing global standards for organizations to disclose their impact on the climate. It aims to combat “greenwashing” by companies that selectively adhere to sustainability standards. The ISSB, established in November 2021, brings together various standard-setters under the International Financial Reporting Standards Foundation. It rolled out the finalized versions of S1 General Requirements for Disclosure of Sustainability-related Financial Information and S2 Climate-related Disclosures on June 26^th 2023.

Beyond climate, the board intends to expand into other areas such as biodiversity, human capital, human rights, and integration in reporting. The ISSB’s proposed standards align with the widely used framework of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures.

The Securities and Exchange Commission (SEC) is also expected to finalize its own climate-related disclosure rule in October 2023. Companies will need to navigate compliance with both the SEC rule and ISSB standards. Adoption of ISSB standards by jurisdictions will require coordination with officials globally, and talks have been initiated with various countries and continents. The ISSB is seeking to provide high-quality, globally comparable information on sustainability-related risks and opportunities to meet investor needs.

Mihir stated, “I can tell you that over 90% or 95% of Fortune 100 companies are doing some kind of sustainability reporting. It’s all voluntary. There is no mandate from anyone. That’s what the SEC proposal is all about… The whole purpose of why the ISSB was even established is to provide that standardization to the investors and the other shareholders, especially of large companies, to make sure that there’s comparability between what companies are reporting.”

How Centri Can Help

Statements and reports published by companies regarding their ESG goals, targets, and achievements are attracting increased scrutiny from stakeholders and regulators alike. With the SEC rule changes on the horizon, companies should act now to adapt to the anticipated regulatory requirements.

Whether your business has an ESG program in place or is in the process of developing an ESG strategy, or if you are a Board Member, Head of Sustainability, or Finance personnel in charge of ESG initiatives at your company, our team will provide you the guidance to confidently move forward with your ESG journey. Contact us to learn more.