The International Financial Reporting Standards (IFRS) Foundation has found just 2-3% of companies reported in line with all 11 Task Force on Climate-related Financial Disclosures (TCFD) recommendations during the 2023 fiscal year. A survey sampled 3,814 public firms, with 82% of companies disclosing in line with at least one of the 11 TCFD recommended disclosures, while 44% of companies disclosed against at least five. The IFRS Sustainability Disclosure Standards are developed and maintained by the International Sustainability Standards Board (ISSB), with IFRS S2 focusing on specifically climate-related disclosures. The IFRS Foundation subsumed the TCFD in July 2023, incorporating the taskforce’s 11 recommendations into the ISSB’s standards. According to the report, as of September 2024, 30 jurisdictions already have or plan to introduce ISSB Standards in their legal or regulatory frameworks. These jurisdictions collectively represent 57% of global gross GDP, more than 40% of global market capitalisation, and more than half of global greenhouse gas emissions. Between October 2023 and March 2024, more than 1,000 companies have referenced the ISSB in their reports, the study found. “Investors are still not receiving the information they need to assess and price appropriately climate and other sustainability-related risks and opportunities,” said Emmanuel Faber, Chair of the ISSB. “The introduction of sustainability-related disclosure requirements into regulatory frameworks through the adoption or other use of ISSB Standards, building on the strong foundations laid through the TCFD recommendations and progressing towards a more comprehensive and assurable set of requirements, is of vital importance for the healthy functioning of capital markets around the world.”
A new report published by the #IFRS Foundation sets out global progress towards both mandated and voluntary corporate climate-related disclosures.
Find out more below or read the full report: https://t.co/A5MIPYFohc#ISSB pic.twitter.com/8FXiFLnHMf
— IFRS Foundation (@IFRSFoundation) November 12, 2024
