A coalition of over 120 investors from across the world has urged policymakers to make ISSB-aligned sustainability reporting mandatory globally by 2025. They claim that this is needed for the transition to a net zero economy.
The coalition includes the London Stock Exchange Group, the Pakistan Stock Exchange, many US and European pension funds and numerous asset managers and corporations.
The sustainability reporting standards published by the International Sustainability Standards Board (ISSB), known as IFRS S1 and S2, are considered a reference for voluntary reporting to investors – and are already being adopted into mandatory reporting frameworks.
The coalition argues that governments have an essential role to play in harmonising the sustainability data reported by companies, as over 40% of the world’s 4,000 largest listed firms still did not disclose their Scope 1 and 2 emissions in 2022.
“Ensuring disclosure frameworks use or incorporate these new standards to deliver the ISSB’s global baseline is a natural next step to build on existing progress and prompt companies to report material information on climate and other sustainability-related risks and opportunities,” the investors wrote.
Adopting ISSB standards globally would reduce the reporting burden for multinational companies and help them attract international capital, they add.