Take Note: Recent Updates on the CSRD, ISSB and TNFD Reporting Frameworks
November has been a busy month for regulatory developments. Here are some of the most significant developments we’ve been tracking.
The International Sustainability Standards Board (ISSB)
On November 1, the International Sustainability Standards Board (ISSB) confirmed that companies will be required to use climate-related scenario analysis to support analysis of their climate resilience when reporting against the ISSB’s IFRS Sustainability Disclosure Standard S2 – Climate-related Disclosures. Reporting businesses will also be required to use climate-related scenario analysis to identify climate-related risks and opportunities.
On November 3, the ISSB announced that under its IFRS S1 general sustainability requirements, reporting companies must consider Sustainability Accounting Standards Board (SASB) Standards when identifying which sustainability matters to report on and in developing appropriate disclosures.
On November 8, the ISSB and non-profit sustainability disclosure platform provider CDP announced that CDP will integrate the ISSB’s IFRS S2 Climate-related Disclosure standards into the CDP’s disclosure platform.
Taskforce on Nature-Related Financial Disclosures (TNFD)
On November 4, the Taskforce on Nature-Related Financial Disclosures (TNFD) published an updated draft framework—the third iteration—to help companies report on their risks and impacts related to nature. The draft also provides disclosure requirements and guidance for establishing science-based targets.
European Sustainability Reporting Standards (ESRS)
On November 15, the Sustainability Reporting Board of the European Financial Reporting Advisory Group (EFRAG) agreed on the first set of draft European Sustainability Reporting Standards (ESRS) to be submitted to the European Commission. The ESRS standards are part of the EU Corporate Sustainability Reporting Directive (CSRD).