Suz Mac Cormac spoke to Agenda about the International Sustainability Standards Board (ISSB) releasing its highly anticipated sustainability- and climate-related disclosure standards, creating for the first time a global set of guidelines related to ESG disclosures that experts are hoping can provide clarity for companies.
According to Suz, the ISSB standards will provide a uniform policy for companies across the world to look toward when discussing climate information.
She noted that investors are seeking uniform disclosures on ESG metrics that are material based on the industry, and in the absence of Generally Accepted Accounting Principles in the U.S. creating its own standards, "the ISSB will become the de facto standard," adding that many U.S. companies are already disclosing under the Sustainability Accounting Standards Board standards, which have been incorporated into the ISSB.
"[The ISSB standards] are a huge step forward for measurement and reporting of ESG factors that are material to operations and financial performance for corporations worldwide," Suz said. "Providing investors with a clear and consistent means of evaluating and benchmarking ESG together with financial performance is critical to move away from greenwashing and to demonstrate to the anti-ESG agitators that certain industry-specific ESG factors do, in fact, drive shareholder value."
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