Accounting Standards

IFRS reveals new strategic direction after sustainability consultation

Trustees of the IFRS Foundation met last week to analyse feedback received from their sustainability reporting consultation

The trustees of the International Financial Reporting Standards (IFRS) Foundation have announced its new strategic direction after meeting last week (2-4 March) to analyse feedback received from their sustainability reporting consultation.

Feedback confirmed there was an “urgent need” for an overhaul in financial reporting to become more sustainable, according to the foundation.

In February, the foundation’s trustees welcomed the International Organization of Securities Commission’s (IOSCO) commitment to assisting the IFRS Foundation in setting up sustainability reporting standards that meet the needs of capital markets.

Based on feedback from the consultation, the foundation has released a series of proposals to meet its target.

The new strategic direction includes having an investor focus on enterprise value, prioritising climate and ESG matters in reporting, building on existing climate-related frameworks and having a “building blocks” approach in coordinating reporting requirements.

Following this announcement, the trustees intend to publish a feedback statement that summarises the responses received to their consultation in 2020.

The foundation remains “determined” to make a final decision on a new board ahead of the November 2021 United Nations COP26 conference.

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