Implications for agribusiness of ESG reporting of the new International Sustainability Standards Board
ARE seminar by Dr. Julian Roche, UWA
Abstract
With the announcement of the International Sustainability Standards Board (ISSB) at COP26, the world of sustainability reporting took a major step. The disparate frameworks and alternative Standards from different organisations are being replaced by an integrated ISSB reporting framework consistent with IFRS and both thematic and industry sustainability reporting Standards. The ISSB initiative is in turn being examined closely by the jurisdictions and Exchanges worldwide that are introducing mandatory sustainability reporting. Agribusinesses worldwide may therefore be able to look forward to consolidating their sustainability reporting through the adoption of a set of largely internationally consistent industry Standards, their format and content indicated in the ISSB prototypes already published. But the future may not be as rosy as it seems. The new Standards are resolutely focused on identifying material risks to the providers of capital, not to the environment or people more widely. They are also as yet much clearer about where there is widespread global agreement, on environmental issues, than for social or governance disclosures where there is not, and the risk is emerging that they may remain so. It is certain that the ISSB is a major step – but in which direction?
