As the global voice of the accountancy profession, IFAC has long supported the establishment of the International Sustainability Standards Board (ISSB) to develop a comprehensive global baseline of sustainability disclosures—which are now endorsed by IOSCO and are ready to be adopted and implemented around the world.  High-quality implementation of IFRS S1 and IFRS S2 is critical to the ISSB’s mission.  

We congratulate the ISSB for addressing “climate first” with IFRS S2 and also delivering IFRS S1 requirements for broader disclosure of investor-focused information about sustainability-related risks and opportunities. Next, companies need a global baseline for a holistic, narrative analysis of how reporting entities create, preserve, or erode value over time, including how sustainability disclosures are connected to financial position and performance.     

IFAC CEO Kevin Dancey said, “Our research clearly shows that companies are moving away from stand-alone sustainability reports—at least in terms of timing and same location. Investors need a consistent, comprehensive view, and companies need a timely pragmatic solution to the connected reporting issue.  The <IR> Framework that is commonly used to provide up front narrative information coupled with the IASB’s prior work on Management Commentary provide a constructive roadmap for the two boards to move with pace, just like they did  with S1 and S2, to develop a new template for explaining how a company creates sustainable value.”  

The ambition and momentum demonstrated by the ISSB since it was announced at COP 26 must continue, and we urge the Board to use the results of this agenda consultation to set out a clear timeline for addressing additional sustainability topics including biodiversity and human capital/rights issues.  

IFAC continues its call on the global accountancy profession to work with local regulators and stakeholders to support the adoption of ISSB standards, to help build capacity for their implementation alongside any local complementary reporting requirements, and to continue to contribute our expertise and feedback to the ISSB as its important standard setting work continues. 

About IFAC 

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce. 

Mandatory greenhouse gas (GHG) emission disclosures are on the way in various jurisdictions, and fortunately, meeting the evolving GHG reporting standards may not be as expensive or difficult as some companies fear. When it comes to GHG emissions accounting especially, sustainability reporting can function as an extension of existing financial reporting, and companies of any size can take immediate steps to ensure their data is in order and that they’re reporting robust information when the new standards and rules go into effect.

To explore aligning GHG emissions accounting with financial reporting systems and processes to deliver decision-useful GHG reporting, the International Federation of Accountants (IFAC) and the We Mean Business Coalition (WMBC) present a Climate Week NYC event, Achieving Investor-Grade GHG Reporting: The Role of Accounting and Finance Professionals. The event will be held virtually September 19 at 9:00am ET and feature experts discussing their experiences, challenges, and best practices in collaborating with sustainability professionals and others to improve GHG reporting that satisfies both organizational and investor needs.

The panel discussion will be moderated by Stathis Gould, Director, IFAC and feature:

• Eugene Brink, Vice President, Finance Transformation, GE Vernova
• Jimmy Greer, ESG Specialist, Datamaran
• Mike Harris, ESG Services Leader at PwC Canada; Chair, Sustainability Assurance Committee, Auditing and Assurance Standards Board (AASB)
• Jane Thostrup Jagd, Director, Net Zero Finance, We Mean Business Coalition; Former Lead Compliance Officer at Maersk and Ørsted
• Elizabeth Seeger, Board Member, International Sustainability Standards Board (ISSB)

“Professional accountants and finance professionals play a crucial role in providing decision-useful and trusted GHG reporting to management and capital markets,” said Kevin Dancey, IFAC CEO. “With an integrated mindset that connects financial and emissions data, accountants advance progress towards our most urgent shared goal: achieving climate commitments.” 

Register for the online event September 19 at 9:00am ET. 

About IFAC 
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

About WMBC
We Mean Business Coalition (WMBC) is a global nonprofit coalition working with the world’s most influential businesses to take action on climate change. Together we catalyze business leadership to drive policy ambition and accelerate the transition to a low-carbon economy. Our mission is to ensure that the world economy is on track to avoid dangerous climate change by 2020 while delivering sustainable growth and prosperity for all.

In September 2023, the United Nations will mark the half-way point to the deadline set for achieving the 2030 Agenda and the Sustainable Development Goals. This is an important juncture for global leaders to reflect on the progress we have made, the progress we have not made, and the challenges we face ahead.

Reflecting on the G20’s current theme of One Earth, One Family, One Future, IFAC, acting in its role as the global voice of the accountancy profession, highlights the importance of inclusivity in underpinning sustainable development in its 2023 Call to Action. We must approach sustainability, the public sector, small- and medium-sized entities (SMEs), and education with an inclusive approach to make sure that the opportunities of today and tomorrow are shared, and that economic and social development are truly sustainable.

“We have serious challenges ahead of us. Fortunately, the global accountancy profession is a committed partner, doing our part to drive sustainable development and demonstrating leadership as a truly global and inclusive profession,” said IFAC CEO Kevin Dancey.

IFAC calls on G20 leaders to:

1. Make Sustainability A Reality, Not Just a Goal

• Lead on achieving the UN SDGs and provide a foundation for net zero transitions
• Support the ISSB's global baseline for sustainability disclosures
• Support mandatory assurance of sustainability information pursuant to ISSA 5000
• Support the work of the International Public Sector Accounting Standards Board to develop sustainability reporting standards for the public sector

2. Support Public Financial Management and Fight Corruption

• Support high-quality public financial management, professionalization in the public sector, and accrual accounting at all levels of government
• Continue to prioritize full adoption and implementation of global commitments on the fight against corruption, such as the G20 Anti-Corruption Action Plan

3. Create an Environment for SME Growth and Innovation

• Embed the unique needs of SMEs into global policy making
• Support access to digital infrastructure and skills for SMEs
• Provide a supportive regulatory environment for SMEs

4. No Inclusive Growth without Education

• Support equal access to education, including STEM (science, technology, engineering and math) and accounting skills
• Support financial literacy globally and locally

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants (IFAC) plays a vital role in driving the development, adoption, and implementation of transparent and high-quality international standards. These standards for audit and assurance, ethics and independence, education, and public sector accounting are used by professional accountants and serve as a fundamental pillar within the global financial architecture.

The World Bank, an institution dedicated to providing financing, policy advice, and technical assistance to governments of developing countries, recently extended significant financial support to expand the accessibility of certain materials (noted below) into Spanish and French. This support broadens the availability of these publications to IFAC’s global audience and their stakeholders, and helps to promote greater economic growth, development, and accountability.

In jurisdictions where English is not an official or business language, one of the primary obstacles to successful adoption and implementation of international standards is the lack of access to translations in local languages. IFAC takes proactive steps to tackle this challenge by collaborating with member organizations in leveraging their technical expertise to provide translation support, as well as engaging with donors to help further facilitate the translation process.

IFAC CEO Kevin Dancey said, “IFAC thanks the World Bank and our member organizations for their generous financial support in expanding the accessibility of multilingual materials. Your invaluable contribution has made a profound impact on our efforts to foster the adoption and implementation of international standards on a global scale. Consequently, this will pave the way for driving progress, bolstering economic stability, and ensuring responsible financial practices worldwide.”

For more details on how to support translations, please reach out to Michelle Brody (MichelleBrody@ifac.org) or permissions@ifac.org.

View the newly translated publications in Spanish and French:

      ¹Spanish was not completed under the World Bank.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in more than 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

The endorsement by International Organization of Securities Commissions (IOSCO) of IFRS Sustainability Disclosure Standards S1 and S2, and its call to action to its member jurisdictions, are most welcome developments in the ever-important sustainability space.

We commend the IFRS Foundation, the International Sustainability Standards Board (ISSB), and IOSCO who are dedicated to maintaining fair, efficient and transparent markets. Promoting consistent and comparable climate-related and other sustainability-related information is an important component of this work.

As sustainability reporting becomes increasingly mandatory in some jurisdictions, the focus must turn quickly to mandatory assurance. Without it, the quality of sustainability reporting will lag financial reporting, and there will continue to be issues with greenwashing, reliability, and credibility. The accountancy profession, underpinned by its Code of Ethics, is particularly well placed to provide assurance services across both sustainability and financial disclosure.

IFAC CEO Kevin Dancey said, "IFAC applauds IOSCO’s endorsement of IFRS Sustainability Disclosure Standards S1 and S2, and its call to action to its member jurisdictions. These are important and most welcome developments. Now, the focus must turn quickly to sustainability assurance. IFAC remains committed to advancing these important conversations with our many global stakeholders, including with our 180 member organizations that represent millions of professional accountants all around the world."

About IFAC 
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce. 

The public sector is the largest sector in the global economy, and with complex finances, competing demands on public resources, and the need for transparency and accountability in the management of public funds, the demand for accounting and finance professionals is high. However, many public sector entities, including at national and local government levels, struggle to find suitable candidates with the right skills to fill these positions.

In collaboration with the South African Institute of Chartered Accountants (SAICA), IFAC has published a case study on SAICA’s activities in the public sector, highlighting how a focus on the public sector supports its mandate to contribute to South Africa’s economic and social advancement. SAICA’s priorities include increasing the professionalisation of the public sector through multiple pathways to attract talent and grow its membership, as well as supporting members through professional development and by advocating on their behalf.

“Professional accountancy organizations (PAOs) have a critical role to play in the public sector,” said Stathis Gould, Director of Member Engagement at IFAC. “PAOs can promote the value of a professional workforce, advocate for accountants, and support members’ professional development, which will help the public sector do more with less, and ultimately reinforce trust in public services and spending. SAICA is an excellent example to learn from.”

Dive into SAICA’s methods in IFAC’s case study, Broadening the Accountancy Profession’s Reach in the Public Sector.

About IFAC 

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce. 

Given the scale and complexity of public finances, competing demands on public resources, and the need for transparency and accountability for the management of public funds, the demand for finance and accounting professionals is high.