Latest news with #ISSB
Business Times
a day ago
- Business
- Business Times
Global convergence of sustainability disclosure standards – what boards need to know
SUSTAINABILITY disclosures have finally begun to align globally after a long, winding journey spanning three decades. What originated in the 1980s as voluntary environmental-related disclosures by companies have today evolved into mandatory disclosure regulations across environment, social and governance (ESG) factors adopted by more than half the stock exchanges worldwide – and for good reason. These standards are necessary because they offer a clear, transparent and comparable framework for companies to report their ESG impacts, risks and opportunities – factors that are financially material and directly influence a company's enterprise value. Investors want to understand how businesses are addressing pressing issues such as climate change risks, gender diversity and supply chain vulnerabilities, all of which can materially affect future cash flows and risk profiles. By providing high-quality, decision-useful information about sustainability-related financial risks and opportunities, these standards empower investors and capital providers to make smarter decisions and enhance the comparability of data for investment analysis. For companies preparing these reports and the board directors overseeing them, the past couple of decades have often felt like navigating an alphabet soup of varying standards, from the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) to the Task Force on Climate-related Financial Disclosures (TCFD). Investors want to understand how businesses are addressing pressing issues such as climate change risks, which can materially affect future cash flows and risk profiles. PHOTO: AFP As someone who regularly trains boards and management teams, I frequently hear business leaders express, both privately and candidly, their frustration that these efforts seem like a 'waste of time'. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up There was therefore a global sense of palpable relief when the International Sustainability Standards Board (ISSB) was established in November 2021 at the United Nations Climate Change Conference in Glasgow, creating a global baseline of sustainability disclosures tailored to capital market needs. Speaking recently in Singapore at a Singapore Institute of Directors (SID) event, ISSB vice-chair Sue Lloyd acknowledged that the current landscape is 'very fragmented, not investor-focused, and confusing'. The ISSB's mission is to cut through this complexity by providing investors with high-quality information to better allocate capital and understand sustainability-related risks and opportunities. This convergence means that companies adopting the ISSB's first two standards, S1 and S2, can now cover what was previously addressed by TCFD, SASB, and the Climate Disclosure Standards Board. This streamlines reporting for companies and enhances comparability for investors, enabling better decisions about how companies manage risks. Countries around the world are progressively adopting these standards. Singapore is among a pioneer cohort of 21 jurisdictions, with Asia-Pacific countries interestingly making up the majority at 12. The Singapore Exchange requires listed companies to report on Scope 1 and Scope 2 greenhouse gases and incorporate IFRS Sustainability Disclosure Standards. PHOTO: YEN MENG JIIN, BT The Singapore Exchange adopted the standards from FY2025, requiring listed companies to report on Scope 1 and Scope 2 greenhouse gases and incorporate IFRS Sustainability Disclosure Standards. Lloyd shared that more than a thousand companies have referenced the ISSB standards in their reports, and 30 jurisdictions are actively working to embed these standards in their legal frameworks. What do these developments mean for board directors? First, the shift from voluntary to mandatory reporting demands greater oversight and expertise. Directors must grasp the technical details of such disclosures, especially under IFRS S2, which requires companies to disclose both qualitative and quantitative financial impacts of climate-related risks and opportunities. While the qualitative aspect of such disclosures are relatively straightforward, many directors find the quantitative disclosures challenging. The methodologies of arriving at such figures – often using long-term and wide-ranging climate scenarios – are still nascent and sometimes lack precision. Lloyd acknowledged that these figures 'don't have to be perfect' but should provide a reasonable basis for understanding risk hot spots, and be transparently explained. The ISSB is cognizant of balancing the usefulness of information with the pace of progress, especially in emerging areas such as nature-related disclosures, which are harder to quantify. Another critical area for directors is the linking of financial statements to material sustainability information. The S1 and S2 standards require these disclosures to be integrated for investment decisions to be meaningful. Directors also face challenges managing data volume, ensuring data credibility, and obtaining external assurance for such disclosures. ' The ISSB is cognizant of balancing the usefulness of information with the pace of progress, especially in emerging areas such as nature-related disclosures, which are harder to quantify. ' ISSB member Verity Chegar, speaking at the same event, highlighted that this integration requires bringing together finance and sustainability functions – 'a significant change management exercise' that ultimately leads to more robust reporting and a greater understanding of value drivers. One ongoing debate that is often raised is the ISSB's single-materiality approach, which focuses on sustainability-related risks and opportunities that are material to a company's financial performance and prospects, rather than broader societal and environmental impacts. Some market observers have advocated for the ISSB to adopt the double-materiality approach, which considers both financial materiality and impact materiality (impact on society and the environment) of sustainability-related matters. This approach is adopted by the GRI framework as well as the European Sustainability Reporting Standards. The latter's Corporate Sustainability Reporting Directive applies to large companies with an annual turnover of more than 150 million euros (S$220 million) in the European Union (EU), and it includes parent companies with operations in the EU, even if they are located outside the jurisdiction. Boards of such companies will be required to have full view and oversight of both approaches in its disclosures. The ISSB, however, has maintained that its investor-focused scope ensures global comparability and usability in capital markets. It has also emphasised that it works closely with European standard setters to align definitions where possible to help companies streamline reporting and use ISSB disclosures as part of their European compliance requirements. The American elephant in the room The American factors add complexity. Given the global uncertainty triggered by the Trump administration since the start of the year and its multifaceted attack on ESG principles and governance, one key question playing on the minds of boards has been: Will we see an increasingly divergent disclosures landscape even as global standards are harmonising? The US Securities and Exchange Commission (SEC) has declined to recognise the ISSB standards as an alternative reporting framework, and its own set of climate disclosure rules were dropped in March following significant political opposition. California, which experienced major wildfires this year, is among the US states that explicitly permit the use of ISSB standards. PHOTO: AFP Given the US market's size and influence – it accounts for 70 per cent of the MSCI World Index and has more than 5,000 listed companies – this non-participation complicates the global ambition of achieving a level playing field and interoperable data across markets. Still, Chegar pointed out that US companies are still required to provide material information to investors, and even if there is less guidance from the SEC, investors continue to demand material sustainability-related financial information. ISSB standards can serve as helpful guidance for these companies, and some states, such as California, explicitly permit the use of ISSB standards. Thinking ahead Looking ahead, despite near-term challenges, the momentum towards global convergence and harmonisation is clear. The ISSB standards represent a major milestone in advancing a standardised, investor-centric approach to sustainability reporting. For board directors, mastering these standards – their philosophy, operational challenges and strategic implications – is crucial for effective oversight and ensuring their companies' long-term value creation and success. The writer is CEO of Eco-Business, SID senior accredited director, and independent non-executive director of various listed company and government boards
Cision Canada
28-05-2025
- Business
- Cision Canada
Socialsuite Unveils First-of-Its-Kind AI-Driven Double Materiality Software for CSRD Compliance
AUSTIN, Texas, May 28, 2025 /CNW/ -- Socialsuite, a leader in sustainability risk management technology, announces the launch of its groundbreaking AI-driven double materiality software —an end-to-end solution designed to help organizations navigate the complexities of the Corporate Sustainability Reporting Directive (CSRD) with confidence. This first-of-its-kind platform combines stakeholder engagement data capabilities with AI-powered benchmarking enabling compliance alignment with ESRS and ISSB standards to revolutionize the mandated double materiality assessment process. "As organizations face increasing regulatory pressure, they need a solution that not only ensures compliance but also streamlines and enhances their materiality risk assessments," said Seth Forman, CEO of Socialsuite. "Our new platform combines cutting-edge AI with collaborative project management tools, helping companies reduce the time and cost of conducting a double materiality assessment by up to 80%." "Socialsuite's platform is filling a major ESG tech stack gap. Its ability to map dependencies, business activities, and relationships across the value chain and digitally connect flexibly score IROs truly sets it apart from other providers" said Jeffrey Crawford, Managing Director of Azuri. Key Benefits and Features End-to-End Management: Eliminate spreadsheets with a structured, collaborative approach that centralizes stakeholder engagement, materiality data, and documentation into one auditable, intuitive platform. AI-Driven Insights: Uses intelligent benchmarking to identify industry trends, assess impacts, risks, and opportunities, and guide strategic decision-making. Compliance Made Simple: Built-in alignment with CSRD and IFRS standards ensures confident and credible reporting. Trusted by Industry Leaders Industry leaders, including in-house sustainability teams and consultants, already recognize the value of Socialsuite's technology in strengthening their double materiality assessments and sustainability strategies. "Socialsuite has been a game-changer for us. Their platform and expertise made our materiality assessment so much smoother and faster. We got deeper insights from stakeholders, which really strengthened our reporting and strategy. Thanks to Socialsuite, we're raising the game in sustainability for our industry." – Renata Lopes, Head of Sustainability at Tabcorp "Socialsuite's combination of innovative technology and expert advisory support helped us navigate the complexities of sustainability in our sector. The materiality assessment process gave us clear insights into the priorities of our stakeholders, eliminating the guesswork and providing us with a strategic roadmap for the future." – Kai Martin, Chief Sustainability Officer at The Pasha Group As organizations worldwide prepare for CSRD mandates, Socialsuite provides a practical, efficient, and scalable solution to one of sustainability reporting's biggest challenges. To learn more about the Socialsuite double materiality software, visit
Yahoo
28-05-2025
- Business
- Yahoo
Socialsuite Unveils First-of-Its-Kind AI-Driven Double Materiality Software for CSRD Compliance
AUSTIN, Texas, May 28, 2025 /PRNewswire/ -- Socialsuite, a leader in sustainability risk management technology, announces the launch of its groundbreaking AI-driven double materiality software —an end-to-end solution designed to help organizations navigate the complexities of the Corporate Sustainability Reporting Directive (CSRD) with confidence. This first-of-its-kind platform combines stakeholder engagement data capabilities with AI-powered benchmarking enabling compliance alignment with ESRS and ISSB standards to revolutionize the mandated double materiality assessment process. "As organizations face increasing regulatory pressure, they need a solution that not only ensures compliance but also streamlines and enhances their materiality risk assessments," said Seth Forman, CEO of Socialsuite. "Our new platform combines cutting-edge AI with collaborative project management tools, helping companies reduce the time and cost of conducting a double materiality assessment by up to 80%." "Socialsuite's platform is filling a major ESG tech stack gap. Its ability to map dependencies, business activities, and relationships across the value chain and digitally connect flexibly score IROs truly sets it apart from other providers" said Jeffrey Crawford, Managing Director of Azuri. Key Benefits and Features End-to-End Management: Eliminate spreadsheets with a structured, collaborative approach that centralizes stakeholder engagement, materiality data, and documentation into one auditable, intuitive platform. AI-Driven Insights: Uses intelligent benchmarking to identify industry trends, assess impacts, risks, and opportunities, and guide strategic decision-making. Compliance Made Simple: Built-in alignment with CSRD and IFRS standards ensures confident and credible reporting. Trusted by Industry Leaders Industry leaders, including in-house sustainability teams and consultants, already recognize the value of Socialsuite's technology in strengthening their double materiality assessments and sustainability strategies. "Socialsuite has been a game-changer for us. Their platform and expertise made our materiality assessment so much smoother and faster. We got deeper insights from stakeholders, which really strengthened our reporting and strategy. Thanks to Socialsuite, we're raising the game in sustainability for our industry." – Renata Lopes, Head of Sustainability at Tabcorp "Socialsuite's combination of innovative technology and expert advisory support helped us navigate the complexities of sustainability in our sector. The materiality assessment process gave us clear insights into the priorities of our stakeholders, eliminating the guesswork and providing us with a strategic roadmap for the future." – Kai Martin, Chief Sustainability Officer at The Pasha Group As organizations worldwide prepare for CSRD mandates, Socialsuite provides a practical, efficient, and scalable solution to one of sustainability reporting's biggest challenges. To learn more about the Socialsuite double materiality software, visit Media Contact: Kate Smith Senior Marketing Associate Socialsuite kate@ View original content: SOURCE Socialsuite
Yahoo
27-05-2025
- Business
- Yahoo
ICAEW calls for alignment with ISSB in ESRS
The Institute of Chartered Accountants in England and Wales (ICAEW) has called for the European Sustainability Reporting Standards (ESRS) to align with and build from the International Sustainability Standards Board's (ISSB) standards. With more than 6,500 ICAEW members situated in the European Economic Area and various UK companies potentially subject to these standards, the organisation emphasised the need for clarity and alignment in sustainability reporting. ICAEW expressed its support for the ambitions of the European Green Deal and the provisions outlined in the Corporate Sustainability Reporting Directive. However, the institute highlighted that the ESRS development in an accelerated manner led to flaws that could weaken the Green Deal objectives. The organisation expressed concerns regarding the principal purpose and objectives of ESRS, which are not easily understood. According to ICAEW, the prescribed information often lacks value for decision-making, and there are contradictions and ambiguities within the standards. Other concerns highlighted by the organisation include the overly detailed requirements which it says are not in line with public messaging on interoperability, and a lack of clarity over important aspects of the double materiality requirements. The European Financial Reporting Advisory Group's (EFRAG) standard-setting process has been unduly rushed, leaving insufficient time to properly consider stakeholder feedback. ICAEW's head of corporate reporting, audit and assurance Nigel Sleigh-Johnson said full alignment with ISSB standards would remove duplication of effort in standard-setting and allow the EFRAG time to focus on addressing the most challenging provisions. Incorporating the ISSB's work could simplify the development of standards applicable beyond the EU, according to Sleigh-Johnson. He also emphasised the importance of aiming for equivalence rather than mere interoperability to foster stakeholder trust in global sustainability reporting. Sleigh-Johnson said: 'We therefore support calls for the European Commission to prioritise the work needed to enable equivalence to be possible.' While acknowledging the pressure on the EFRAG to expedite the workplan, ICAEW insists on due process procedures that ensure quality and stakeholder engagement. These procedures should include a full public consultation and careful consideration of feedback, crucial for the success and credibility of the reporting standards. "ICAEW calls for alignment with ISSB in ESRS" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Muscat Daily
22-05-2025
- Business
- Muscat Daily
Ominvest publishes third Sustainability Report
Muscat – Ominvest announced the release of its third Sustainability Report for the fiscal year 2024, marking a transformative year of progress across its sustainability journey. This report underscores the Group's deepened commitment to responsible investing practices, transparent disclosure, and alignment with international recognized ESG standards. The 2024 report details key strategic milestones, including the alignment of Ominvest's ESG strategy with MSX and relevant global frameworks. Notably, Ominvest integrated ESG due diligence into its investment process, conducted its first double materiality assessment, and completed a comprehensive review of its sustainability strategy and related policies. The company also launched its first recycling partnership, and implemented Group-wide ESG training and ISSB capacity-building initiatives, reinforcing its commitment to fostering a sustainability-conscious organization. Abdulaziz al Balushi, Group CEO of Ominvest, commented, 'The publication of our third Sustainability Report marks a significant step forward in Ominvest's ongoing sustainability journey. This report reaffirms our steadfast commitment to responsible investing, transparent disclosure, and alignment with global ESG benchmarks. The milestones achieved in 2024 reflect our proactive approach to cultivating a more sustainable and resilient future for all our stakeholders.' Waleed al Yarubi, Chief People, Corporate Communication and Sustainability Officer at Ominvest, added, 'Our achievements in 2024 underscore Ominvest's ambitions to establish new standards for ESG excellence within the region, and demonstrate the effectiveness of cross-functional collaboration across the Group. From preparing for ISSB adoption to refining our policies, we are building a more agile and accountable ESG foundation, with the objective of driving positive impact and sustainable growth throughout our portfolio and beyond.' As the sustainability landscape continues to evolve, Ominvest remains committed to lead the drive towards sustainable investment and setting benchmarks for the regional investment ecosystem — further reinforcing its role as a responsible investor and corporate leader.
