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In brief: ISSB frameworks could be ‘a landmark in sustainable finance’

Two draft ESG reporting frameworks focused on climate-related and ‘general’ sustainability disclosures are available for public review.

The International Sustainability Standards Board revealed two draft reporting frameworks last week. The two proposals, focused on climate-related and “general” sustainability disclosures, are now available for a 120-day public review period.

The frameworks “builds upon the recommendations” of previous ESG reporting initiatives, according to a statement from the International Financial Reporting Standards Foundation, which announced the launch of ISSB last November during COP26. The ISSB frameworks “set out requirements for the disclosure of material information” and draw from initiatives including the Task Force on Climate-Related Financial Disclosures and the Sustainability Accounting Standards Board, the statement said.

“Endorsement of the final standards once these are issued by the ISSB would be a landmark in sustainable finance,” Martin Moloney, secretary general of International Organization of Securities Commissions, told affiliate publication Responsible Investor in an interview.

ISSB released the draft frameworks amid efforts in the EU, the US, and other global markets to establish regulatory regimes governing the mandatory disclosure of ESG and climate-related reporting. The review period ends on 29 July, and ISSB aims to unveil the final frameworks by the end of the year.