Stockholm (NordSIP) – Given the continued demand for sustainable financial products, and following a Consultation Paper on Sustainability Reporting, the IFRS Foundation published proposed amendments to its Constitution to facilitate the creation of a new International Sustainability Standards Board (ISSB) at the end of April.
On the same occasion, the IFRS also published a comprehensive Feedback Statement that summarises responses to the feedback received regarding the consultation on sustainability reporting conducted between September and December 2021.
“In their responses to the Consultation Paper, many stakeholders said that a new board would benefit from the Foundation’s existing three-tier governance structure. In particular, respondents commented that its three-tier structure provides legitimacy; they also observed that the public authorities represented on the Monitoring Board provide a direct link to governments and that the Trustees provide robust oversight,” the proposal states in its introduction. “However, there was a broad understanding among respondents that the governance structure would need to be amended sufficiently to accommodate a new board, and many stakeholders requested an opportunity to provide further input into potential changes to the Foundation’s governance structure.”
The trustees are particularly keen to hear from commentators on “whether the proposed governance structure would provide legitimate oversight of the standard-setting by a new board; and whether the proposed amendments are proportionate to the Foundation’s strategy in relation to the potential work of the new board.”
Recognising recent statements of support for a new sustainability board from the Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO), the Trustees reiterated their goal of announcing the new board at the November 2021 United Nations COP26 conference.
The consultation is open for comment for 90 days and closes on 29 July 2021.