Sustainability
The International Sustainability Standards Board (ISSB) is easing sustainability reporting requirements as stakeholders have highlighted some application challenges. The ISSB has proposed amendments to its IFRS S2 climate-related disclosures standard, which will not reduce disclosures but will make them more practical, it says. They include relief from measuring and disclosing ‘scope 3 category 15’ indirect greenhouse gas (GHG) emissions associated with derivatives and some financial activities; sometimes freeing S2 users from having to use the Global Industry Classification Standard when disclosing disaggregated financed emissions information; clarifying when reporters can use GHG measurement methods other than the Greenhouse Gas Protocol; and allowing reporters to use global warming potential values other than those mandated by the UN Intergovernmental Panel on Climate Change.
The IFRS Foundation, the Inter-American Development Bank and multilateral investment bank IDB Invest have forged a strategic partnership to promote the adoption and implementation of ISSB sustainability disclosure standards across Latin America and the Caribbean. They have devised an action plan including knowledge sharing, capacity building and policy engagement.
The Global Reporting Initiative (GRI) has advised the European Financial Reporting Action Group (EFRAG) to use GRI standards when simplifying the European Sustainability Reporting Standards (ESRS). EFRAG has been told to cut ESRS disclosures by the European Commission under its planned ‘Omnibus’ reforms to the Corporate Sustainability Reporting Directive. GRI said that removing ESRS data points not covered by GRI standards would reduce disclosures by at least 30%, while maintaining report quality.
Environmental disclosure system CDP has unveiled the accredited software solutions providers running its Disclosure API programme this year, helping to collect and organise environmental data, transferring it directly to the CDP portal. Vendors include the AMCS Group, Benchmark Digital Partners, Novisto, Pulsora, Salesforce, Watershed, Gravity Climate, MioTech, Workiva, Diligent, Nossa Data, NTT Data, Wastebox and Cority.
The International Accreditation Forum (IAF) and the United Nations Industrial Development Organisation (UNIDO) are strengthening collaboration, integrating IAF CertSearch, the global database of accredited management system certifications, into UNIDO’s Quality Infrastructure for Sustainable Development (QI4SD) Index. It assesses the readiness of economies to support the UN’s Sustainable Development Goals. By incorporating IAF CertSearch data, the index will enhance its reliability and comprehensiveness.
Reporting standards
The International Federation of Accountants (IFAC), the International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) have agreed at a joint summit to work more closely together to further adoption of IESBA and IAASB standards. That includes boosting transparency through effects analysis of new or revised standards; post-implementation reviews of significant new or revised standards, generally within five years; and using narrow-scope amendments to resolve identified problems, with more consideration of user engagement and feedback.
The move comes as the IAASB/IESBA Stakeholder Advisory Council discussed the importance of effective strategic positioning to address key trends impacting reporting. These include deregulation and fragmentation, technology (such as artificial intelligence and digital assets), continued demand for sustainability information, and talent attraction and retention.
Assurance
The IAASB has withdrawn its ISAE standard 3410 on assurance engagements on GHG statements, which will be replaced by its ISSA 5000 standard on general requirements for sustainability assurance engagements.
Public sector accounting
IFAC will use US$1m from the multilateral health agency Global Fund to work with the Pan African Federation of Accountants to strengthen public sector accountancy in Burkina Faso, Ghana, Tanzania and Togo. This follows a successful pilot capacity-building initiative in Burkina Faso and Ghana.
Tax planning
IESBA has released a questions-and-answers note on the adoption and implementation of the IESBA ‘tax planning and related services standards’ for professional accountants in public practice and business when providing planning or tax planning activities.
More information
Watch Adam Deller’s series of videos explaining the fundamentals of IFRS Accounting Standards
Read our article on the IESBA’s global ethics sustainability standards
