On Tuesday, United Kingdom announced that Britain will be one of the first countries to implement corporate sustainability disclosure rules set by a new worldwide board that will be introduced soon.
The IFRS Foundation which is based in London is due to launch a new International Sustainability Standards Board (ISSB) in the run-up to next month’s United Nations’ Climate Change Conference (COP26) in Glasgow, Scotland.
It aims to replace a patchwork of climate-related company disclosure regulations with a unified set of global guidelines, which investors say will make it easier to compare companies from different countries.
Martin Callanan, British business minister said at an event hosted by the Institute of Chartered Accountants of England and Wales (ICAEW), that the government firmly supports the development and hopes to be among the first countries to embrace them for use by domestic enterprises.
According to officials at the IFRS Foundation, the ISSB is expected to produce its first set of disclosure guidelines next year, which currently controls the IASB, a global accounting rules-setting group.
The business ministry is formulating suggestions for ISSB disclosure standards endorsement and adoption and will consult on them next year, Callanan said in a statement.
He added that the UK would be a ‘fantastic home’ for the ISSB. The finance minister of Britain, Rishi Sunak has stated that the United Kingdom will assist the new agency regardless of where it is situated.
Germany, Switzerland, Japan, and Canada have also agreed to host the ISSB.