Interoperability Guidance between ISSB-ESRS Standards Published

On 2nd May 2024, the joint interoperability guidance between the International Sustainability Standards Board (ISSB) and the European Commission, alongside EFRAG was published. It aligns the European Sustainability Reporting Standards (ESRS) and the IFRS Sustainability Disclosure Standards (ISSB Standards), especially in climate-related reporting.

This guidance document streamlines disclosure requirements and ensures compliance with both sets of standards for entities. It encompasses general reporting requirements and focuses on climate-related disclosures, facilitating efficient reporting for entities subject to both standards. It contains lists of corresponding climate-related disclosure requirements that are aligned, as well as information that an entity starting with ESRS needs to know when also applying ISSB Standards to enable compliance with both sets of standards and vice versa.

Companies must refer to this interoperability guidance alongside the relevant standards to ensure compliance. However, it’s crucial to note that this guidance does not replace the standards themselves and entities must adhere to materiality considerations and specific disclosure requirements outlined in ESRS and ISSB Standards. Reporting under one set of standards does not imply simultaneous compliance with the other reporting standards.