By Lori-Ann Bernard, ESG McGill Analyst
As we saw in the HBR article from the last newsletter, it is too easy for companies to cherry-pick information included in their sustainability reports without universal sustainability standards available. At COP26 last November, the IFRS [International Financial Reporting Standards] Foundation voted to create another board, the ISSB [International Sustainability Standards Board]. Similar to the financial reporting guidelines requiring companies to disclose meaningful financial information [with the International Accounting Standards Board], the ISSB will develop ESG information disclosure reporting standards. The ISSB headquarters will be scattered across several countries worldwide, including Montréal. This is important as it will allow the board to develop metrics that can be applied across different industries and economies. Creating standards applicable in multiple industries is crucial to developing standards that will be widely implemented. The board will build upon the metrics established by present sustainability boards to form a universal set of standards.