A roadmap for the adoption of ISSB Standards

In the face of increasing regulatory fragmentation and the growing need for consistent sustainability disclosures, the time to ensure a robust and globally aligned approach to the adoption of the International Sustainability Standards Board (ISSB) Standards is now. A harmonised sustainability reporting framework is essential to enhancing transparency, comparability, and trust in corporate sustainability disclosures.

The International Regulatory Strategy Group (IRSG), together with Clifford Chance, strongly support efforts, both domestic and international, to achieve this goal. This report explores key regulatory and legislative considerations for effective adoption of ISSB Standards, aiming to prevent major jurisdictional divergence and ensure a coherent global implementation strategy.

The report sets out several key recommendations that we believe will support the successful adoption of ISSB Standards. These include the need for clear alignment of local standards with ISSB requirements to minimise fragmentation, the importance of transition reliefs, particularly regarding Scope 3 emissions, and phased implementation approaches to balance investor needs with preparers' capacity.

Last but not least, the report includes recommendations on the implementation of a clear regulatory timetable and the introduction of appropriate liability protections to encourage transparent and decision-useful disclosures. In the long term, establishing a globally consistent sustainability reporting system will be fundamental in driving sustainable finance and facilitating informed investment decisions worldwide.

The report was launched virtually on 27 March. Watch the on-demand webinar.

Annex of the report can be found here.