In a surprising turn of events, climate change is finally under control, the war in Ukraine is over and authoritarian governments are collapsing around the world. By now you know this is just an April Fools message, but it is nice to dream.
Building on the momentum from last week’s historic proposal from the US Securities and Exchange Commission (SEC) aiming to integrate climate disclosures into financial reports, this week brought more major news about the development of international standards for disclosure of ESG information.
ISSB drops two new draft standards and aligns with SASB
The International Sustainability Standards Board (ISSB) published two draft standards for consultation. The exposure drafts on climate and general sustainability-related financial disclosures will be available for comment until July 29th, 2022. The ISSB aims to release the final standards by the end of this year. This is a huge step forward in bringing the alphabet soup of sustainability reporting standards under one unified standard.
The ISSB also announced plans to build on the Sustainability Accounting Standards Board (SASB) industry-based Standards and leverage SASB’s industry-based approach for its own standards development. This was no surprise to industry watchers as it had been previously announced that SASB (now merged into the Value Reporting Foundation) would merge with ISSB this summer.
A few of the unanswered questions are:
How does this week’s announcement that the ISSB will build on SASB’s approach square with last week’s announcement that ISSB will work with the Global Reporting Initiative’s (GRI) standards board which has a very different approach?
How will the ISSB standards work with EU’s sustainability standards that are also under development? The EFRAG (European Financial Reporting Advisory Group) - the body developing these standards -
How is the ISSB doing all this work before it has named its Board members and established its standards development process?
If your head is spinning you are not alone. Sadly, these overlapping announcements and consultations seem to be creating more confusion than clarity.
Those who are tired of the constant drumbeat of bad news are instead sharing positive climate news and communicating how people can take action. Some climate advocates call this more positive climate stance “OK Doomer” - a reference to the ‘OK Boomer’ label that Gen Z’ers and millennials use to criticize older generations.
This NYT article highlights some of this positive climate action through eco influencers like Alaina Wood who relays climate wins and is debunking extreme climate fatalism on TikTok. Another climate advocate under the “eco-tok” group, which has over 200 million views, is using his 1.4 million follower platform on TikTok to promote environmental and climate action as fun.
This climate optimism and passion for driving change among today's youth is not restricted to social media posts. The ‘OK Doomer’ cadre are also seeking careers that help tackle climate change. And, while some seek careers with meaning, students in seven continents marched against climate inaction in the first Fridays for Future action since COP26.
Missed our latest edition of ESG & Climate News? Check it out now and stay in the know: March 18, 2022.
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Persefoni is the leading Climate Management & Accounting Platform (CMAP). The company’s Software-as-a-Service solutions enable enterprises and financial institutions to meet stakeholder and regulatory climate disclosure requirements with the highest degrees of trust, transparency, and ease. As the ERP of Carbon, the Persefoni platform provides users a single source of carbon truth across their organization, enabling them to manage their carbon transactions and inventory with the same rigor and confidence as their financial transactions.