The International Financial Reporting Standards Foundation unveiled an IFRS Sustainability Knowledge Hub to encourage use of the International Sustainability Standards Board frameworks for disclosing climate risks, in conjunction with Climate Action Day at the United Nations’ COP28 climate change conference in Dubai.
The hub hosts content developed by the IFRS Foundation and more than 100 resources developed by third-party organizations. The foundation, which oversees both the ISSB and the International Accounting Standards Board, plans to add more materials over time in response to market needs and emerging practices.
The hub was designed to help companies prepare their ISSB disclosures, but the foundation also sees it as a useful repository for auditors, investors, regulators and other stakeholders who want to advance their understanding of the ISSB sustainability and climate standards, which take effect in January. Among the resources on the hub are an introduction to the ISSB standards, a guide for transitioning from the Taskforce on Climate-related Financial Disclosures recommendations to ISSB standards, and a set of frequently asked questions.
The debut of the hub coincides with an update to the IFRS Foundation’s FSA Credential Level 1, which now reflects the work of the ISSB. The paid credential leads to a two-hour exam that tests understanding of the principles and practices of sustainability disclosure, as a way to advance a common language of sustainability disclosures.
The IFRS Foundation hopes to build support for implementation of the ISSB standards by working with outside partners to advance its work. Among them is the UN Sustainable Stock Exchange Initiative, which counts 134 stock exchanges as members, and has developed a training program to guide companies through a four-step process of preparing, aligning, implementing and communicating sustainability-related information. It includes practical steps to build the necessary skills to identify and disclose climate and sustainability-related risks and opportunities.
The Association of Chartered Certified Accountants is also developing an array of resources, including freely available guides and learning resources and CPD initiatives, to build capacity among its 247,000 members. The ISSB standards will be added to the ACCA’s syllabus for the ACCA Qualification from next year to build knowledge within the next generation of accountants. A series of video explainers prepared by ACCA about IFRS S1 and IFRS S2 is already available on the IFRS Foundation’s new IFRS Sustainability knowledge hub.
The Pan African Federation of Accountants, the United Nations Development Programme and the International Federation of Accountants also stressed their ongoing commitment to deliver educational initiatives to support use of ISSB standards. IFAC ‘s International Panel on Accountancy Education has begun a Sustainability Reporting Project to consider, among other matters, the implications of the ISSB standards on IFAC’s own International Education Standards.
Also on Climate Action Day, the ISSB participated in the launch of the Global Capacity Building Coalition for Climate Finance established by the Glasgow Financial Alliance for Net Zero as a coalition of organizations that will offer climate-related capacity-building to support emerging markets and developing economies. The coalition will support uptake of emerging global best practices and standards, including ISSB standards.
