On April 30, the IFRS announced the provision of a first version of the ISSB taxonomy with its two standards S1 and S2. Digital standards will help investors effectively analyze sustainability data in company disclosures. These standards concern companies on an international scale.
On the European side, the first twelve ESRS standards were published at the end of last year: A first version of the ESRS taxonomy was also communicated by EFRAG for a consultation closed on April 8. The final XBRL taxonomy should be submitted during the summer of 2024 to the European Commission and ESMA (European Securities and Markets Authority). Based on this taxonomy, ESMA will develop the draft RTS for tagging sustainability reports.
Both international and European standards can thus benefit from correspondences which have been revealed in a detailed guide.
All companies present, both on a European regulated market and internationally, will therefore be able to comply with the ISSB and the ESRS in a single report. This is enough to reassure certain companies which will free themselves from double publication. To complete the publication of the detailed guide, EFRAG will hold a webinar on May 23 to clarify this interoperability and their practical application.
