A significant shift in corporate sustainability disclosure
The consolidation of the Value Reporting Foundation (VRF) and the Climate Standards Disclosure Board (CDSB) under the International Financial Reporting Standards (IFRS) Foundation, as well as the establishment of the International Sustainability Standards Board (ISSB) in 2021 mark a great shift in corporate sustainability disclosure. Exposure drafts of two proposed standards have already been issued, and the upcoming consolidation is only weeks away. These developments will impact sustainability disclosure greatly, and the alignment towards this shift on the corporate side will create many opportunities to advance disclosure practices.
During this time of change, we have decided to take a closer look at how disclosures in Japan align with the Sustainability Accounting Standards Board (SASB) Standards. The SASB Standards will continue to play a crucial role in corporate sustainability disclosures, as they are being embedded into the development of ISSB’s new standards. Assessing the reports of the TOPIX 100 against the current SASB Standards provides a crucial snapshot of the state of disclosure. And understanding what areas are already aligned and where there are still opportunities to improve disclosure practices can be a key piece for companies and investors in their shift towards the upcoming ISSB standards.