Investors have a new tool for analyzing sustainability disclosures

By Steve Kerch

May 16, 2024

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2 min read

The International Sustainability Standards Board has created a new tool for investors and portfolio managers that will allow them to better analyze sustainability-related financial disclosures from companies in more than 140 countries that adhere to International Financial Reporting Standards.

Once companies begin using the new tool, investors will be able to search, extract and compare sustainability-related financial disclosures. The tool can be used with other platforms so that companies will be able to provide a holistic digital reporting package to investors.

“As jurisdictions around the world are considering the adoption or other use of ISSB standards, the publication of the ISSB Taxonomy … is critical to support capital-market transparency and efficiency and enable companies and investors to digitally process sustainability-related financial disclosures,” ISSB Chair Emmanuel Faber said in a post on the board’s web site.

The taxonomy for the new tool reflects input from two international standards: “General Requirements for Disclosure of Sustainability-related Financial Information” and “Climate-related Disclosures,” as well as their accompanying guidance.

Investors and advisers can find the tool here: IFRS Sustainability Disclosure Taxonomy and supporting information. You must be a registered user to access the content. The new digital financial reporting page includes educational material that aids understanding and supports the use of the IFRS digital taxonomies.

The IFRS Foundation is a not-for-profit, public interest organization established to develop high-quality, understandable, enforceable and globally accepted accounting and sustainability disclosure standards. In 2021 the foundation created the ISSB, which operates alongside the International Accounting Standards Board. The ISSB develops IFRS Sustainability Disclosure Standards, designed to deliver a global baseline of sustainability disclosures to inform capital markets.

Steve Kerch

Steve is a member of Equities Staff editorial team. He brings 22 years of investment publishing experience to the table having worked at MarketWatch most of his career. He is an experienced editor, writer, columnist, TV host and radio commentator with an extensive background in digital and print journalism. Steve is a proven digital traffic generator and an innovator who has developed specialized digital and print content for local and national audiences.

Investors have a new tool for analyzing sustainability disclosures

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