ISSB Climate Standards Should Adjust to Diverse Landscape – FCA

The International Sustainability Standards Board (ISSB) should adjust the exposure drafts of its general and climate-related disclosure requirements to account for existing variations in corporate reporting requirements, according to the UK’s Financial Conduct Authority (FCA). The drafts, published by the ISSB in March, were welcomed by the regulator as a “critical milestone” on the path to a globally consistent baseline of sustainability disclosures. But the FCA said the ISSB should take further steps to recognise “the different levels of familiarity with and maturity” in climate- and sustainability reporting across corporates in different jurisdictions. Specifically, the UK’s financial watchdog said the standards-setter should consider refining certain definitions, developing guidance to improve the consistency of implementation by preparers and providing for “limited flexibilities and scaling and phasing of requirements”, while upholding the welcome ambition of the proposals. The standards are now open to feedback until 29 July and will be finalised by the end of this year.  

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