How sustainability disclosures are evolving and the prospects for convergence

In this episode, the speakers discuss what we can expect from the ISSB and how it will impact the future of ESG disclosures for businesses.

The current global nonfinancial disclosures landscape is highly fragmented with a variety of different bodies evolving reporting frameworks. Will the new ISSB standards accelerate their convergence into mandatory globally accepted ESG reporting standards?

In the final episode of the miniseries on disclosures, host Bruno Sarda is joined by Terence Jeyararetnam, EY Asia-Pacific Leader and Partner, Climate Change and Sustainability Services at Ernst & Young (the Partnership), and a member of the ISSB’s Technical Reference Group.

The discussion begins with the analysis of the different frameworks already in existence from the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and others. Many businesses have already adopted these, but there is pressure from regulators, investors and other stakeholders for frameworks to be standardized and mandated. Voluntary reporting is not taking businesses far enough to reduce their impact on climate and nature.

The ISSB has an important role in accelerating this, and the hosts discuss whether the aggressive timeline for introducing the ISSB standards is realistic, what resistance is likely and what the prospects are for global acceptance. They also talk about how the new standards from the US SEC and the EU CSRD frameworks will fall into the picture.

Companies should prepare for a potential new reality, where ESG reporting could be as rigorous and mandated as financial reporting. Bruno and Terence discuss the need for culture change and the key role of the CFO in gathering and managing the ESG data.

Key takeaways:

  • The current nonfinancial disclosures landscape is fragmented with a variety of voluntary frameworks.
  • A unified globally accepted standard for ESG reporting is necessary, as the current voluntary reporting environment is not working fast enough to address the impacts on nature and climate.
  • Demand for convergence is coming from investors, governments and other stakeholders.
  • The ISSB aims to produce globally accepted standards, starting with climate, but extending to biodiversity as well.
  • Businesses can prepare by building on existing reporting and evolving its culture and learning.
  • The CFO is expected to play a key role, expanding their responsibility to include ESG data.

You can also listen to this podcast on Apple and Spotify.

For your convenience, full text transcript of this podcast is also available. Read the transcript.

Presenters

Bruno Sarda
Principal, Climate Change & Sustainability Services, Ernst & Young LLP
Terence Jeyaretnam
EY Asia-Pacific Climate Change and Sustainability Services Leader

Podcast

Season 4, Episode 10

Duration 27m 57s

In this series

Series overview
(Event List - Manual)

How can TNFD bring transparency on a path to save biodiversity?

In the second episode of the sustainability disclosures miniseries, Bruno Sarda and guests discuss the importance of biodiversity, the Taskforce on Nature-related Financial Disclosures (TNFD) and potential impacts on businesses.
Podcast

Season 4, Episode 9

Duration
34m 31s

Presenters

Bruno Sarda

Principal, Climate Change & Sustainability Services, Ernst & Young LLP

Alexis Gazzo

EY Europe West Sustainability Co-Leader; EY France Climate Change and Sustainability Services Leader

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Podcast

Season 4, Episode 8

Duration
27m 57s

Presenters

Bruno Sarda

Principal, Climate Change & Sustainability Services, Ernst & Young LLP

Elodie Timmermans

EY Americas Climate Change and Sustainability Services, Nonfinancial Reporting Assurance and Advisory Leader

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In the latest episode of the Sustainability Matters podcast, Bruno Sarda and guests discuss the new COP27 initiatives from the perspective of the Africa and Latin American regions.
Podcast

Season 4, Episode 7

Duration
34m 04s

Presenters

Bruno Sarda

Principal, Climate Change & Sustainability Services, Ernst & Young LLP

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Podcast

Season 4, Episode 6

Duration
25m 41s

Presenters

Bruno Sarda

Principal, Climate Change & Sustainability Services, Ernst & Young LLP

Dr. Matthew J. Bell

EY UK&I Climate Change and Sustainability Services Leader

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Podcast

Season 4, Episode 5

Duration
21m 11s

Presenters

Bruno Sarda

Principal, Climate Change & Sustainability Services, Ernst & Young LLP

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In this episode of the Sustainability Matters podcast, Bruno Sarda speaks to Jennifer Leitsch and Cynthia Curtis about the challenges and opportunities of achieving net zero.
Podcast

Season 4, Episode 4

Duration
26m 19s

Presenters

Bruno Sarda

Principal, Climate Change & Sustainability Services, Ernst & Young LLP

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The Sustainability Matters podcast welcomes its new host, Bruno Sarda, highlighting the issues that will likely inform ESG matters in the coming year and outlining his vision for the series.
Podcast

Season 4, Episode 3

Duration
22m 58s

Presenters

Bruno Sarda

Principal, Climate Change & Sustainability Services, Ernst & Young LLP

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In this episode of the Sustainability Matters podcast, Steve Varley – EY Global Vice Chair of Sustainability – discusses the impact, outcomes and importance of actioning key COP26 takeaways.
Podcast

Season 4, Episode 2

Duration
28m 28s

Presenters

Steve Varley

EY Global Senior Advisor