In response to the International Sustainability Standards Board’s (ISSB) request for input on its agenda priorities, AIA underscores the critical importance of prioritising the implementation of IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and S2 (Climate-related Disclosures).
AIA strongly supports the development of high-quality global standards for sustainability-related reporting. As a member of the European Federation of Accountants (EFAA), AIA fully endorses and supports representations made by EFAA to this consultation process and made its response in addition to those comments. AIA also echoes the FRC’s call for close collaboration between the ISSB and the International Accounting Standards Board (IASB) on an integrated reporting project.
AIA’s viewpoint is clear: the ISSB should prioritise supporting the widespread adoption and effective implementation of IFRS S1 and S2 above all other agenda items. AIA also encourages the ISSB to provide a clear statement of intent following the agenda consultation, particularly concerning the development of future standards, including S3.
AIA believes in creating a global accountancy profession and supports the International Federation of Accountants (IFAC) in creating a global accountancy profession recognised as a valued leader in the development of strong and sustainable organisations, financial markets and economies. AIA has adopted IFAC’s Code of Ethics for professional accountants and incorporates IFAC’s International Education Standards (IES) into qualifications.
AIA Director of Operations David Potts said, “Universal adoption of S1 and S2 is vital for the ISSB’s future goals. These standards lay the foundation for a robust global sustainability reporting system, crucial for navigating sustainable finance and responsible business practices. Prioritising their broad adoption is key to realising the ISSB’s ambitions and ensuring sustainability.”
The views expressed in this consultation response build upon AIA’s role as a membership and qualifying body, supporting members to provide critical data to their clients and preparing accountants of the future for their key role in sustainability reporting. The response highlights not only some overarching comments for consideration but also detailed responses to the specific questions posed by the ISSB, with particular focus on the importance of SMPs and SMEs in this sustainability-reporting space.
AIA’s commitment to equipping members and students with the skills and knowledge necessary to champion sustainable business practices is evident in its Sustainability Promise and participation in the Sustainable Finance Education Charter, alongside embedding this at the very top of AIA’s governance framework with the appointment of sustainability expert Dr Peter Ellington to AIA’s Council.
As part of this commitment, AIA is a signatory to the Sustainable Finance Education Charter, along with government bodies and financial professional organisations. The charter aims to integrate green finance and sustainability into the education and professional development of accountants. AIA is actively involved in educating its members about green finance through a series of workshops designed to prepare them for a low carbon and net-zero future. These workshops cover critical topics such as climate change, social inequalities, carbon footprints, and sustainability accounting standards, emphasising the vital role accountants play in addressing these global challenges. AIA is also extending open access to these workshops, highlighting the importance of green finance education.
In summary, AIA advocates a strong focus on IFRS S1 and S2 as the foundation for the ISSB’s sustainability standards agenda. AIA underscores the importance of broad adoption of these standards, while emphasising collaboration, efficient use of existing work, and strategic planning as key components in the ISSB’s path forward.
Universal adoption of S1 and S2 is vital for the ISSB’s future goals. These standards lay the foundation for a robust global sustainability reporting system, crucial for navigating sustainable finance and responsible business practices. Prioritising their broad adoption is key to realising the ISSB’s ambitions and ensuring sustainability.
David Potts, AIA Director of Operations.
