ISSB to Absorb TCFD  

The Financial Stability Board (FSB) has transferred responsibility for monitoring of the Task Force on Climate-related Disclosures (TCFD) to the IFRS Foundation following the publication of its inaugural ISSB Standards. The FSB said the standards marked “the culmination of the work of the TCFD”, which was established in 2017 under the leadership of then-FSB chair Mark Carney. The new ISSB Standards – IFRS S1 (sustainability-related risks and opportunities) and IFRS S2 (climate-related disclosures to be used with IFRS S1) – fully incorporated the recommendations of the TCFD and would take over responsibility for it from 2024. ISSB Chair Emmanuel Faber said: “The TCFD has been a trailblazer in raising the practice and quality of climate-related disclosures, providing much-needed information to investors about climate-related risks and opportunities. The ISSB has built from and consolidated the market-leading investor-focused sustainability-reporting initiatives to deliver the ISSB Standards, with the TCFD recommendations at the heart of this. As such, the ISSB welcomes the FSB’s request to transfer the TCFD’s monitoring responsibilities to the ISSB from 2024 and the opportunity to build on TCFD’s legacy. This announcement provides yet further clarification of the so-called ‘alphabet soup’ of ESG initiatives for companies and investors.” 

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