As sustainability reporting standards evolve, the ISSB (International Sustainability Standards Board) is quickly becoming the global benchmark for companies aiming to align with investor and regulatory expectations. ISSB consolidates key frameworks like TCFD and SASB, helping businesses streamline their ESG disclosures and meet the growing demand for transparent, comparable data.

In this article, we’ll explore the importance of transitioning to ISSB, the regulatory pressures driving this shift, and the changing perspective of investors. We’ll also introduce our range of services—from aligning your reporting with ISSB standards to crafting compelling sustainability narratives and providing independent assurance to boost stakeholder confidence. 

Let us help you stay ahead in the rapidly changing landscape of sustainability reporting.

Why Transition to ISSB?

The ISSB was established to provide a high-quality, comprehensive global baseline for sustainability disclosures, designed to meet the needs of investors and financial markets. It consolidates frameworks like TCFD, SASB, and Integrated Reporting, while collaborating with GRI and ESRS to create unified standards.

Image Source: IFC, 2024

Regulatory Pressure

Currently, more than half of global stock exchanges (71) have issued ESG disclosure guidance, compared to only 13 in 2015, according to the UN Sustainability Stock Exchange database. Mandatory ESG regulations now exist in 27 markets, 16 of which are emerging markets, and this trend continues to grow. For companies, this makes collecting ESG data essential.

With stock exchanges increasingly mandating ESG regulations, the need for consistent and comparable data is crucial. ISSB is emerging as the preferred standard for these disclosures. Countries like Malaysia and Australia are in the final stages of mandating ESG disclosures aligned with ISSB, while Singapore has gone a step further, requiring compliance from FY2025 and encouraging consistent reporting through ESG scorecards.

Change in Investor’s Perspective

Image Source: MIT Sloan, 2024

A global survey of over 1,000 investors—including asset owners, managers, and investment managers—reveals a strong shift towards sustainable investing, even amid global disruptions like COVID-19 and the Russia-Ukraine war.

Nearly 80% of investors now have sustainable investing policies in place, compared to just 20% five years ago—a 3.9-fold increase. Investors are looking for clear, reliable, and consistent sustainability data, and over 90% of survey participants believe that full compliance with ISSB standards will improve the clarity and reliability of ESG disclosures.

Harmonizing sustainability disclosure standards is crucial for attracting capital, preventing greenwashing, and aligning with investor expectations. ISSB is becoming the gold standard for sustainability reporting, simplifying the disclosure of sustainability risks and opportunities.

Additionally, complying with ISSB standards can streamline reporting processes, reducing the need to follow multiple frameworks, thereby saving time and resources. It also enhances access to global capital markets, as investors increasingly prioritize companies with standardized, comparable sustainability data.

What We Offer

Framework Alignment:

Aligning with ISSB standards is more than just meeting regulatory demands—it positions your company for success in a market increasingly focused on sustainability.

We specialize in helping companies transition seamlessly to ISSB standards by providing customized strategies tailored to your business needs, identifying gaps in your current reporting, and providing tools to streamline the entire process, making it more efficient and less time-consuming.

Narrative Development:

Companies with well-developed sustainability narratives can achieve up to 30% higher investor engagement. A compelling narrative builds trust, showcases your achievements, and aligns your company’s efforts with global sustainability expectations. It helps differentiate your business in a crowded market where investors and clients are increasingly prioritizing companies with strong ESG narratives.

We work with you to craft a clear and engaging sustainability message that highlights your progress and future goals. Whether it’s your annual report, website content, or investor communications, we ensure that your narrative aligns with global frameworks like ISSB while appealing to your key stakeholders.

Assurance Services:

According to a recent survey, 94% of investors believe that corporate sustainability reports contain unsupported claims, making assurance a critical tool for enhancing credibility and maintaining a company’s reputation. Independent assurance strengthens the trust stakeholders place in your sustainability data, ensuring that your claims are backed by verified, reliable information.

Independent assurance is a valuable tool for organisations to enhance trust and confidence over their sustainability information to investors, regulators and other stakeholders. Assurance of ESG information is an emerging area with the impending issuance of ISSA 5000 and jurisdictions such as Australia, beginning to seek for reasonable assurance.

Get Ready for the Future of Reporting

The transition to ISSB is more than just compliance; it’s an opportunity to demonstrate leadership in sustainability. With our expertise in frameworks, narratives, and assurance, we’ll ensure you meet these requirements efficiently and effectively.

Let’s Get Started

Reach out to us today, and let's discuss how we can support your journey toward sustainable reporting excellence. Whether you’re at the beginning of your transition or seeking to refine your existing processes, our team is ready to help. 

Sources: 

1. SSE Database: Link 
2. Investor Survey : 1000+ Investors 
3. Narrative: Survey 
4. ISSA: Assurance 
5. Survey: McKinsey 
6. Survey: Greenwashing