The Evolution of Sustainability Disclosure - Comparing the 2022 SEC, ESRS,

The SEC focused on the four main pillars of TCFD to frame its proposal, while, in addition to the pillars, the ESRS and ISSB proposals integrate the underlying 11 disclosure recommendations of the framework. [...] The Evolution of Sustainability Disclosure 16 One of the most important differences to highlight is the SEC’s requirements on disclosure related to the entity’s finances and the impact of climate-related risks and opportunities on financial performance. [...] This is demonstrated by the merging of the Value Reporting Foundation (VRF) and the Climate Disclosure Standards Board (CDSB) to form the ISSB, with the intention to incorporate industry-specific SASB metrics at an international level.16 The ISSB also issued a Memorandum of Understanding (MoU) with the Global Reporting Initiative (GRI) in March of 2022 with the hopes of creating a ‘building blocks. [...] The Chinese Ministry of Finance, the European Commission, the European Financial Reporting Advisory Group, the Japanese Financial Services Authority, the Sustainability Standards Board of Japan Preparation Committee, the United Kingdom Financial Conduct Authority, and the US Securities and Exchange Commission are all involved in hopes of fostering dialogue and bringing the current proposals togeth. [...] The Evolution of Sustainability Disclosure 22 In the spring of 2022, the IFRS released two ISSB standards: the General Requirements Standard and the Climate Standard.