Companies need consistent metrics for investor comparisons. The International Sustainability Standards Board (ISSB) aims to provide capital market participants with the necessary information for better economic and investment decisions. Despite widespread sustainability integration, data availability remains a significant barrier, with about 45% of large companies disclosing key Scope 3 emissions data^[1].

The lack of high-quality, consistent sustainability data presents risks for financial institutions, potentially leading to profit losses due to climate change. Additionally, insufficient data could result in missed opportunities in the growing green economy, which is expected to account for 20% of market capitalization by 2030. The ISSB, through its new global standards IFRS (International Financial Reporting Standards ) S1 and S2, seeks to address these issues, with adoption targeted by 2025.

A coalition of 120 investors, companies, industry associations, and stock exchanges has called for authorities worldwide to adopt the ISSB standards. This endorsed statement was developed by the London Stock Exchange Group (LSEG), the Principles for Responsible Investment (PRI), the UN Sustainable Stock Exchanges initiative (UN SSE), and the World Business Council for Sustainable Development (WBCSD).

^[1] https://www.iosco.org/news/pdf/IOSCONEWS703.pdf