June 16, 2021
“Building Blocks” Approach Addresses Informational Needs of Global Capital Markets as well as Country-Specific Requirements
The International Federation of Accountants (IFAC), which comprises 180 member and associate organizations and represents over 3 million professional accountants globally, continues its work in support of a global system for delivering consistent, comparable and assurable sustainability information.
In its response to the U.S. Securities Exchange Commission’s (SEC) recent request for public input on climate change disclosures, IFAC emphasized the needs of investors and other stakeholders for climate and other sustainability-related information to be high-quality, decision-useful, and trusted.
A Building Blocks Approach provides the architecture for a global system that enables comprehensive corporate reporting for capital markets, while also addressing specific public policy initiatives like climate action and other jurisdiction-specific issues. IFAC believes that the IFRS Foundation’s initiative to establish a new International Sustainability Standards Board is a critical component of creating a global baseline of investor-focused reporting requirements. The IFRS Foundation’s ongoing work focused on climate disclosure will benefit all jurisdictions who are taking steps to address the urgency of climate change.
IFAC CEO Kevin Dancy said, “The U.S. and the SEC have played a critical role in the development of IFRS Standards for financial reporting, including convergence between the FASB and IASB and permitting foreign SEC registrants to use IFRS Standards to meet their U.S. reporting requirements. Today, as policymakers consider the best way forward for crafting an emerging global system for sustainability-related reporting, U.S. support is more important than ever. As the SEC explores climate-change related disclosure, IFAC urges the Commission to support a global approach.”