ISSB

The International Sustainability Standards Board (ISSB) is an international body that plays a crucial role in developing global standards for sustainability disclosure. Its primary goal is to provide a standardized and transparent framework that enables companies to report on their environmental, social, and governance (ESG) impacts.

What is the ISSB?

The International Sustainability Standards Board (ISSB) was launched in November 2021 by the IFRS Foundation (International Financial Reporting Standards). This body was established to create global standards that allow companies to disclose sustainability-related information in a consistent, comparable, and reliable manner.

The ISSB seeks to consolidate and harmonize multiple existing frameworks, such as the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD), into a unified approach.

The creation of the ISSB responds to the growing demand from investors, regulators, and stakeholders for clear and standardized information on how companies manage sustainability-related risks and opportunities. A key focus of these standards is the carbon footprint and greenhouse gas (GHG) emissions reporting.

ISSB’s role in carbon footprint measurement

One of the ISSB’s most relevant contributions is its role in the measurement and disclosure of carbon footprints. A company’s carbon footprint is a key metric for assessing environmental impact, as it quantifies the total GHG emissions generated directly or indirectly by its activities.

The ISSB is working to establish clear and precise standards that help companies report on these emissions in alignment with recognized frameworks like the GHG Protocol. This not only enhances transparency but also helps organizations identify opportunities to reduce emissions and advance toward decarbonization.

The importance of standardization in sustainability reporting

The lack of standardized sustainability disclosure has been a major challenge for companies and investors. Without a common framework, it is difficult to compare environmental performance across organizations or assess progress toward climate neutrality goals.

This is where the ISSB plays a crucial role.

By establishing global standards, the ISSB not only improves transparency but also fosters trust among stakeholders. According to a World Bank report (2021), adopting standardized sustainability disclosure can accelerate the transition to a low-carbon economy by providing investors with the data needed for informed decision-making.

The ISSB and international regulations

The ISSB is also aligned with international regulatory initiatives aimed at addressing climate change.

For instance, in the European Union, the Corporate Sustainability Reporting Directive (CSRD) requires companies to disclose detailed information about their environmental impact, including GHG emissions. The ISSB’s standards can serve as a foundation for compliance with these regulations, facilitating harmonization across different jurisdictions.

Additionally, the ISSB collaborates with other international organizations, such as the Intergovernmental Panel on Climate Change (IPCC), to ensure that its standards are based on the latest climate science. This is particularly important in carbon footprint measurement, where accuracy and consistency are essential.

How companies can benefit from ISSB Standards

Adopting ISSB standards offers multiple benefits for businesses, including:

- Improved transparency: Clear and consistent reporting on carbon footprint and other sustainability indicators builds trust among investors and stakeholders.
- Risk and opportunity identification: Detailed emissions measurement helps companies identify key areas for cost reduction and efficiency improvements.
- Regulatory compliance: ISSB standards help businesses meet environmental regulations in different jurisdictions.
- Access to sustainable financing: Transparent ESG disclosure can improve access to investment funds prioritizing sustainability.

The future of ISSB and corporate sustainability

The ISSB represents a major step toward global standardization of sustainability disclosure. As more companies adopt its standards, this is expected to drive greater transparency and accountability in managing environmental impacts.

Additionally, the integration of advanced technologies, such as artificial intelligence and data analytics, will continue to play a crucial role in carbon footprint measurement and management.

Ultimately, the ISSB’s success will depend on collaboration among companies, regulators, and stakeholders. By working together, we can move toward a more sustainable and resilient future, where carbon footprint measurement becomes a key tool in combating climate change.