ISSB and ESRS standards interoperability confirmed

How can companies comply with both ISSB and ESRS standards? Previously announced at the end of 2023, the IFRS foundation and EFRAG have confirmed its interoperability project with the publication a detailed practical guide. This completes the tools available for issuers, following the announcement of high interoperability between the GRI and ESRS standards in November 2023.

ISSB taxonomy confirmed

On April 30, the IFRS announced the provision of a first version of the ISSB taxonomy with its two standards S1 and S2. Digital standards will help investors effectively analyze sustainability data in company disclosures. These standards concern companies on an international scale.

ESRS standards almost finalized

On the European side, the first twelve ESRS standards were published at the end of last year: A first version of the ESRS taxonomy was also communicated by EFRAG for a consultation closed on April 8. The final XBRL taxonomy should be submitted during the summer of 2024 to the European Commission and ESMA (European Securities and Markets Authority). Based on this taxonomy, ESMA will develop the draft RTS for tagging sustainability reports.

Aligned taxonomies

Both international and European standards can thus benefit from correspondences which have been revealed in a detailed guide.

To conclude

All companies present, both on a European regulated market and internationally, will therefore be able to comply with the ISSB and the ESRS in a single report. This is enough to reassure certain companies which will free themselves from double publication. To complete the publication of the detailed guide, EFRAG will hold a webinar on May 23 to clarify this interoperability and their practical application.