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BY
Seneca ESG
- May 25, 2023
G7 leaders have pledged to support the International Sustainability Standards Board’s (ISSB) and its efforts to develop standards for general reporting on sustainability (IFRS S1) and for climate-related disclosures (IFRS S2) at a summit held in Hiroshima, Japan, as reported by Fintech Global on May 22. The leaders made several announcements during the summit, demonstrating the commitment to the goals of the Paris Agreement, particularly the aim of limiting global temperature rise to 1.5°C. They called for an end of construction of new unabated coal-fired power plants and advocated for initiatives to enhance climate transition finance for developing countries. The leaders also emphasized the importance of mobilizing finance to facilitate emissions reductions and climate-resilient development, with a specific focus on encouraging private investments in clean technologies and activities.
The G7’s endorsement of the ISSB follows their previous approval of mandatory climate-related financial disclosures during a meeting in Germany. The ISSB was established by International Financial Reporting Standards (IFRS) Foundation at the COP26 summit in November 2021. The ISSB’s objective is to develop IFRS Sustainability Disclosure Standards, providing a global baseline of disclosure requirements. During the recent G7 summit, the leaders stated in their communique that they will support ISSB creating globally interoperable sustainability disclosure frameworks. They also recognized the importance of corporates undertaking net-zero transitions aligned with the Paris Agreement. In February 2023, the ISSB announced that its initial IFRS Sustainability Disclosure Standards, IFRS S1 and S2, will come into effect from January 2024.
Sou****rces:
https://www.esgtoday.com/g7-leaders-support-development-of-global-sustainable-disclosure-standards/
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