The ISSB and FRS, Setting Global Sustainability Standards

The Foundation for Reporting Sustainability (FRS) is a collaborative effort among various stakeholders, including international organisations, standard-setting bodies, regulators, businesses, investors, and civil society groups. Its primary objective is to address the growing demand for consistent, comparable, and reliable sustainability reporting by establishing globally recognised standards.

The FRS aims to achieve this goal by bringing together expertise from diverse sectors to develop a comprehensive framework for sustainability reporting. This framework covers a wide range of environmental, social, and governance (ESG) factors that are increasingly considered crucial indicators of a company’s long-term performance and value creation.

One of the key components of the FRS is the establishment of the International Sustainability Standards Board (ISSB). The ISSB operates as an independent standard-setting body responsible for developing and maintaining a set of globally applicable sustainability reporting standards. These standards are designed to help companies disclose relevant ESG information in a consistent and comparable manner, thereby enhancing transparency and accountability.

The ISSB’s standards cover various aspects of sustainability reporting, including climate change, biodiversity, human rights, labour practices, supply chain management, and diversity and inclusion. By providing clear guidance on how to report on these issues, the ISSB aims to support companies in integrating sustainability considerations into their decision-making processes and fostering more sustainable business practices.

The ISSB collaborates with other standard-setting bodies, regulatory authorities, and industry stakeholders to ensure alignment and harmonisation with existing reporting frameworks and initiatives. This collaborative approach helps to avoid duplication of efforts and promotes convergence towards a globally accepted set of sustainability reporting standards.

The establishment of the ISSB as part of the Foundation for Reporting Sustainability represents a significant step towards advancing the integration of sustainability into corporate reporting practices and promoting more sustainable and responsible business conduct on a global scale.