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ISSB releases digital sustainability taxonomy

April 30, 2024

The International Sustainability Standards Board published its Sustainability Disclosure Taxonomy on Tuesday.

The new taxonomy will help investors analyze sustainability-related financial disclosures efficiently and provide a framework to consistently tag information prepared using ISSB Standards. The taxonomy reflects IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, IFRS S2 Climate-related Disclosures, and their accompanying guidance. It does not introduce or affect a company's compliance with the standards.

"As jurisdictions around the world are considering the adoption or other use of ISSB Standards, the publication of the ISSB Taxonomy only a few months after the effective date of our inaugural Standards is critical to support capital market transparency and efficiency and enable companies and investors to digitally process sustainability-related financial disclosures provided through use of the ISSB Standards," Emmanuel Faber, ISSB chair, said in a statement.

"We have taken steps to ensure the ISSB Taxonomy can help facilitate interoperability with other taxonomies when necessary — for example, to facilitate interoperability with the taxonomy being developed by EFRAG — enabling all companies and investors to immediately more effectively identify disclosures required by the ISSB," Faber continued.

The International Financial Reporting Standards Foundation will publish a webcast explaining the role of the taxonomy and its benefits in May.

[Accounting Today]

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