The International Sustainability Standards Board (ISSB) announced the publication of its IFRS Sustainability Disclosure Taxonomy (ISSB Taxonomy). The launch is a vital step in empowering investors and capital providers to navigate and analyze sustainability-related financial information more efficiently.
The ISSB Taxonomy, which is informed by extensive market feedback, aligns with the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, including their associated guidance. It aims to enhance dialogue between companies and investors, ensuring that sustainability information is tagged consistently if prepared using ISSB Standards.
Although the taxonomy does not introduce new reporting obligations, it supports compliance with existing standards by providing a framework that integrates with the IFRS Accounting Taxonomy. This integration allows companies to offer comprehensive digital financial reporting packages, thus promoting greater transparency and comparability in capital markets.
The ISSB Taxonomy can help facilitate interoperability with other taxonomies when necessary—for example, to facilitate interoperability with the taxonomy being developed by EFRAG—enabling all companies and investors to immediately more effectively identify disclosures required by the ISSB. This strategic initiative is expected to facilitate enhanced digital engagement between companies and their stakeholders, ensuring that sustainability data is both accessible and actionable.
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