Jenny Bofinger-Schuster, member of the International Sustainability Standards Board (ISSB), discusses the disclosures of anticipated financial effects of sustainability-related risks and opportunities required by ISSB Standards and the interoperability with the corresponding disclosure requirements in the European Sustainability Reporting Standards (ESRS).
Because the ISSB does not typically meet in August, it is a good time to pause for reflection on some of the questions companies have about ISSB Standards. Although disclosing information about sustainability-related risks and opportunities is becoming increasingly common, and the connection of such information with financial statements is increasingly established, one topic that has surfaced in my recent discussions with companies is the disclosure of information about anticipated financial effects. Inspired by these conversations, this article aims to provide some deeper insights on the subject.
