ISSB consults on proposed digital taxonomy to improve global accessibility and comparability of sustainability information

The ISSB has released the Proposed IFRS Sustainability Disclosure Taxonomy for public review. This taxonomy aligns with the disclosure requirements found in the ISSB’s initial two Standards, IFRS S1 and IFRS S2.
The Proposed IFRS Sustainability Disclosure Taxonomy aims to enable digital consumption of sustainability-related financial disclosures from the outset. It was developed based on feedback received on Exposure Drafts IFRS S1 and IFRS S2. The taxonomy is designed to facilitate digital reporting for users, regulators, and preparers, allowing tagging without significant cost.
To ensure seamless integration, the ISSB has been working on the digital taxonomy alongside the development of IFRS S1 and IFRS S2, facilitating digital consumption of sustainability-related financial disclosures when these Standards come into effect.
During the development of the Proposed IFRS Sustainability Disclosure Taxonomy, the ISSB took into account feedback from various sources, including the IFRS Taxonomy Consultative Group (ITCG) and other external expert groups. A standardized digital taxonomy is necessary to promote structured digital reporting of sustainability-related financial information based on ISSB Standards, enhancing global accessibility and comparability of such information for investors.
Similar to the IFRS Accounting Taxonomy, the Proposed IFRS Sustainability Disclosure Taxonomy groups elements according to the requirements in IFRS standards and utilizes a dimensional model for information disaggregation. However, it differs from taxonomies used by jurisdictions to classify environmentally sustainable economic activities. Stakeholder feedback focused on tagging narrative information, requesting a simple approach.
The ISSB proposes creating distinct elements for narrative disclosures in a simple structure. The taxonomy includes industry-based metrics and guidance from SASB. Stakeholders suggested further cooperation, guidance, and interoperability to enhance the global adoption of sustainability-related financial disclosures.
The ISSB invites feedback on the proposals during a 60-day consultation period, ending on 26 September 2023. Subsequently, the ISSB will review the feedback in the latter half of 2023 and aims to release the final digital taxonomy in early 2024, subject to the received input.
Furthermore, on 3 August 2023 at 09:00 BST, the ISSB will conduct a webinar to discuss the proposals, featuring ISSB Member Bing Leng, followed by a Q&A session for users. Find out more about the webinar and register here.
IFRS Sustainability Disclosure Taxonomy—Proposed Taxonomy: dedicated website
IFRS Sustainability Disclosure Taxonomy—Proposed Taxonomy: IFRS Taxonomy Illustrated in Excel format
IFRS Sustainability Disclosure Taxonomy—Proposed Taxonomy: taxonomy files
IFRS Sustainability Disclosure Taxonomy—Proposed Taxonomy: consultation document