Britain says global sustainability disclosures need phasing in

By Huw Jones

LONDON – Proposed world sustainability disclosure guidelines want simplifying and phasing in to keep away from fragmenting how firms report on the impression of local weather change on their enterprise, Britain’s authorities mentioned on Monday.

The brand new Worldwide Sustainability Requirements Board (ISSB) was arrange final yr to write down world baseline guidelines for firms to reveal the dangers and alternatives from local weather change to assist crack down on greenwashing or firms exaggerating their inexperienced credentials.

However the European Union and the US have their very own guidelines, elevating considerations amongst worldwide companies about fragmenting disclosures and terminology.

Martin Callanan, a junior UK minister, mentioned he strongly welcomed the ISSB proposals, however that some will initially show difficult for even the biggest UK firms with a protracted historical past of sustainability reporting.

They might be even more durable for firms in rising and growing markets with no such expertise in areas reminiscent of placing a financial determine on dangers and alternatives from local weather change, he mentioned.

Britain plans to introduce the ISSB requirements for listed firms, however Callanan mentioned that a number of the proposals could show difficult if made necessary right away.

“We help an ISSB commonplace that's complete, however we should additionally mitigate towards the danger that it will show too difficult to undertake in full for some jurisdictions and organisations, at the least initially, which may result in additional disclosure fragmentation,” mentioned enterprise minister Martin Callanan in a letter to the ISSB.

The ISSB might want to say which components may apply initially and which of them could possibly be phased in, Callanan mentioned.

Extra exact definitions, language or ideas may be vital, Callanan mentioned, echoing calls from EU regulators.

The ISSB is contemplating suggestions from its public session earlier than finalising the brand new norms.