The IFRS Foundation has announced that its new sustainability reporting standards are comparable with those of the Taskforce for Climate-related Financial Disclosures (TCFD), a step toward retiring the old standard.
In a press release Monday, the IFRS said the work of its International Sustainability Standards Board (ISSB) would reduce the “alphabet soup” of sustainability reporting initiatives.
“[C]ompanies that apply the ISSB Standards will meet the TCFD recommendations and so do not need to apply the TCFD recommendations in addition to the ISSB Standards,” the organization said.
However, compliance with ISSB will require additional steps including disclosure of industry-based metrics, planned use of carbon credits to achieve net emissions targets and additional information about financed emissions.
The IFRS said that companies could still apply TCFD-recommended disclosures, particularly as a stepping-stone to ISSB compliance.
Earlier this month, the Switzerland-based Financial Stability Board asked the IFRS to take over monitoring of the progress on companies’ climate-related disclosures from the TCFD in 2024.