István Szabó

The IFRS Foundation and EFRAG have released guidance material showcasing the remarkable alignment between the International Sustainability Standards Board (ISSB)'s IFRS Sustainability Disclosure Standards and the European Sustainability Reporting Standards (ESRS). This comprehensive document offers detailed insights into how companies can effectively implement both sets of standards, particularly in climate-related disclosures, aiming to streamline processes and enhance transparency globally. By leveraging this guidance, companies can streamline data collection, governance, and decision-making, ultimately fostering greater transparency, comparability, and accountability in sustainability reporting. (ref: https://lnkd.in/gtm9h-Uj) #IFRSFoundation #EFRAG #SustainabilityStandards #ISSB #ESRS #ClimateDisclosure #Transparency #Comparability #Accountability #SustainabilityReporting #GuidanceMaterial

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“Just transition is relevant for [companies] to consider in relation to disclosures on transition plans for climate change mitigation.” Yes, well said European Financial Reporting Advisory Group - we agree! Check out EFRAG's newly released draft implementation guidance related to transition plans for climate change mitigation. This guidance, when finalised, will provide support for companies implementing transition plans as mandated by the European Sustainability Reporting Standards (ESRS). Flip to page 15 for the report's section on just transition in the context of transition plans 📖 Link to report: https://lnkd.in/emvahmHp

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📢 𝐍𝐞𝐰 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭: ESRS–ISSB Standards Interoperability Guidance has been published! The complexity of sustainability reporting standards has long posed challenges for organisations worldwide, with variations across frameworks adding another layer of complexity. However, this collaboration between the IFRS Foundation, EFRAG, and International Sustainability Standards Board (ISSB) marks a significant milestone in standardising practices. The newly released guidance material on ESRS–ISSB Standards Interoperability offers insights into navigating these complexities, paving the way for more streamlined reporting. #EFRAG #ISSB #ESRS #Interoperability #SustainabilityReporting

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New Q&A explanations on the ESRS released by EFRAG👇 EFRAG has released 23 new explanations to support stakeholders in implementing the European Sustainability Reporting Standards (ESRS). This update expands the Compilation of Technical Explanations to 93 in total, covering January to July 2024. 👉 Key highlights: - Categorized by Cross-cutting, Environment, Social, and Governance - Hyperlinks to ESRS texts for easy navigation - Appendix log for questions already addressed The updated compilation also includes more entity-specific scenarios to help companies apply the ESRS effectively. Stay tuned for more updates as EFRAG continues to release further explanations! #EFRAG #ESRS #ESGreporting

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More collaborations to celebrate that will foster consistent, comparable & decision-useful disclosures for organizations & their stakeholders! Global Reporting Initiative (GRI) & IFRS Foundation continue to build on the collaboration agreement signed in 2022 to provide a seamless, global, comprehensive #SustainabilityReporting system for companies looking to meet the information needs of both #investors & a broader range of internal & external #stakeholders. The complimentary use of these 2 global standards enables organizations to disclosure their #impacts, risks & Oppurtunites. Learn more: https://bit.ly/3KeybjV #Sustainability #ISSB #GRI #GSSB #GRIStandards #Impact #ImpactReporting #ESG #ESGReporting #DoubleMateriality #Transparency

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Tremendous work by the IFRS Foundation, International Sustainability Standards Board (ISSB), GROUPE CONSULTATIF SUR L'INFORMATION FINANCIERE EUROPEENNE - EUROPEAN FINANCIAL REPORTING ADVISORY GROUP to drive alignment of standards and interoperability! The closer the alignment, the greater utility to investors and other users of the information reported, and the less burden for reporting companies. Well done! #sustainability #sustainabilityreporting #globalstandards

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Today, the IFRS Foundation and EFRAG released interoperability guidance showcasing the high level of interoperability between the International Sustainability Standards Board (ISSB)'s IFRS Sustainability Disclosure Standards S1 and S2 and the European Sustainability Reporting Standards (ESRS). ❓ What does this mean? The guidance helps confirms that companies reporting in alignment with the ESRS will in turn be closely aligned to IFRS S1 and S2 since the ESRS and IFRS Sustainability Disclosure Standards have matching definitions for financial materiality. The double materiality approach required by the ESRS not only aligns with, but also fulfills, the financial materiality requirements outlined in the IFRS S1 and S2. To view the guidance document, click here: https://lnkd.in/dE9ERjKW

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In addition to yesterday’s post, there were also two major ISSB announcements in the past few weeks: On 30 April the ISSB published its digital taxonomy. The IFRS Sustainability Disclosure Taxonomy reflects IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. You can access the taxonomy here:  https://lnkd.in/dmpZ2HJA On 23 April, the ISSB announced that it will prioritise the enhancement of the SASB Standards for the next 2 years. The SASB Standards are industry-based Standards covering 77 industries. They contain quantitative metrics as well as some qualitative disclosures with the aim of producing comparable and decision-useful data for investors. Companies applying the IFRS S1 Standards are required to consider the SASB Standards to identify their sustainability-related risks and opportunities and provide disclosures beyond climate-related information. Read more on the announcement here: https://lnkd.in/eC4i44mG See the February publication to learn more about using the SASB Standards to meet the IFRS S1 requirements here: https://lnkd.in/edsFfg5R #issb #ifrs #sasb #esg #nossadata

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International Accounting Standards Board (IASB) consults on #Climate reporting, with board looking to answer #investor demand for enhanced information and greater consistency in #financial statements and aiming to bolster confidence. Comments from Nick Anderson (International Accounting Standards Board (IASB)). Read more of Jack Grogan-Fenn's news piece here: https://lnkd.in/dzMZchsq

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#ESRS–#ISSB #Interoperability #Guidance: The International Sustainability Standards Board (ISSB) and the European Commission services, together with EFRAG, have worked together during the development of the European Sustainability Reporting Standards (ESRS)1 and the IFRS Sustainability Disclosure Standards (ISSB Standards) to achieve a high degree of alignment of the respective standards, with a specific focus on climate‑related reporting. Consequently: -  the definition of financial materiality in ESRS is aligned with the definition of materiality in IFRS S1 General Requirements for Disclosure of Sustainability‑related Financial Information -  the two sets of standards include common defined terms; and -  there is a high degree of alignment of the climate-related disclosures in the two sets of standards and, in particular, almost all the disclosures in ISSB Standards related to climate are included in ESRS. This joint interoperability guidance describes the alignment of disclosure requirements and information that an entity starting with each set of standards needs to know to enable compliance with both sets of standards, ensuring interoperability between them. Regardless of whether it starts with ESRS or ISSB Standards, an entity can comply with the climate requirements of both sets of standards by following the content of this interoperability guidance.

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EFRAG just published the interoperability guidance for ESRS - ISSB ⬇️

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🏹 - What if a new ESG reporting for Businesses, from the European Union was created ? #CSRD 🔝 - And ... What if... an FAQ document was issued based on Business most pressing queries ? 🌐 - What if said document was already available on our chat #GPT chatbot here : https://lnkd.in/e9NwZjFy - Why don't you try it and let us know what do you think of it ?? 🥤 #ESG #ESGAI #EU #Tech #Data #Analysis #Reporting #QHSE ⚡

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The sustainability reporting interoperability guidance that we've all been waiting for... just how tricky is it to comply with both the new European Sustainability Reporting Standards (ESRS) and the International Sustainability Standards Board (ISSB) Standards... this guidance reassures and provides a clear mapping between the standards. The guidance is also useful as it sets out how ESRS disclosures are much more comprehensive, and are in effect ISSB disclosures + impact disclosures. Interesting times! And be careful - not all "Sustainability reports" are made the same way.

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📊🔄 Enhancing Sustainability Reporting: WSBI-ESBG enthusiastically supports interoperability initiative 📑Today, the IFRS Foundation and EFRAG have jointly released guidance material illustrating the high level of alignment achieved between the International Sustainability Standards Board (ISSB) IFRS Sustainability Disclosure Standards and the European Sustainability Reporting Standards (ESRS). 🔍 This guidance provides valuable insights for companies on efficiently applying both sets of standards, including a detailed analysis of alignment in climate-related disclosures. Key points include the definition of financial materiality, common defined terms, and a high degree of consistency in climate-related #disclosures. 🤝 The joint interoperability guidance ensures that entities starting with either ESRS or ISSB Standards can comply with climate requirements from both sets, facilitating interoperability between the standards. 💼 WSBI-ESBG fully endorses this crucial initiative, in view of: 1. Simplifying reporting frameworks to lighten European Union companies' burdens 2. Enhancing investor insight for smarter capital allocation 3. Championing global sustainability through best practices Together, let's pave the way for a more sustainable future! Read the full guidance here: https://rb.gy/f5hhqi #SustainabilityReporting #Interoperability #Alignment #guidance #frameworks

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Civil society’s recent call for EFRAG to uphold robust sustainability standards underscores the critical need for transparency and accountability in Europe’s green transition. The integrity of frameworks like the ESRS is non-negotiable for driving meaningful action and fostering trust among stakeholders. #Sustainability #ESRS #EFRAG #GreenTransition #Leadership

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🌍 Aligning GRI with ESRS Reporting: A Path to Enhanced Sustainability Reporting 🌍 For companies in the EU market, the #CSRD increases the relevance of #GRIreporting. Most large companies, in the EU and elsewhere, already report with GRI, thus making it easier to also report using the #ESRS. Given GRI and EFRAG’s continued collaboration, GRI reporters can be assured they will be best prepared to meet future EU #SustainabilityReporting rules. Here are some steps to align GRI with ESRS reporting: ➡Understand the Frameworks: Familiarize yourself with both GRI Standards and ESRS requirements to identify commonalities and differences. ➡Map the Standards: Create a mapping document to align GRI disclosures with ESRS requirements, highlighting areas of overlap. ➡Integrate Reporting Processes: Streamline your reporting processes to ensure data collected for GRI can be easily adapted for ESRS. ➡Leverage Existing Data: Utilize existing GRI data to fulfill ESRS requirements, reducing duplication of efforts. ➡Engage Stakeholders: Communicate with stakeholders about the alignment process and its benefits for transparency and accountability. Find out more in the post below 👉 Global Reporting Initiative (GRI) FAQs #Sustainability #Reporting #ESRS #GRI #CorporateResponsibility #EURegulations

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🌍 New Research on EU Sustainability Reporting Standards Need for companies to enhance their sustainability reporting practices Frank Bold's latest report assesses the readiness of 100 companies across high-impact sectors for the upcoming EU Sustainability Reporting Standards (ESRS). Key findings highlight both challenges and emerging good practices: ⚠ Double Materiality: Only 15% of companies specified their material impacts, while 53% detailed sustainability-related risks. ⚠ Climate Transition Plans: 53% of companies have net-zero commitments, with 42% presenting comprehensive transition plans. ⚠ GHG Emissions: 89% disclosed Scope 1 and 2 emissions, but transparency on Scope 3 emissions remains insufficient. ⚠ Sustainability Due Diligence: 43% claim to have due diligence processes, yet only 6% link these to their materiality assessments. ⚠ Biodiversity: Reporting on biodiversity impacts is limited, with only 24% addressing these in their disclosures. If you are in a hurry 🏃‍♂️ - Read Page 8 - 10 ! What This Means: These findings highlight the need for companies to enhance their sustainability reporting practices. Focused, meaningful disclosures are crucial for meeting ESRS requirements and driving impactful change. Companies, auditors, and policymakers must collaborate to ensure effective implementation and avoid box-ticking compliance. My Message: As we move towards a more sustainable future, it's important that businesses align with the ESRS. This report provides valuable insights and recommendations to help companies manage complexities of sustainability reporting and make a real difference. #Sustainability #ESG #CorporateReporting #ClimateAction #FrankBold #CSRD #lessonslearnt

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