The American Bankers Association today provided feedback to the recently formed International Sustainability Standards Board to produce worldwide standard requirements in disclosures connected to sustainability and climate-related threats. In the letter, ABA echoed comparable technical remarks made in a previous remark letter on environment disclosures proposed by the Securities and Exchange Commission, consisting of the requirement for scalability of any worldwide standard requirements, issues with utilizing Scope 3 emissions as signs of shift danger and the requirement for safe harbors.
ABA likewise highlighted that the idea of “materiality”—a fundamental element of disclosure to financiers—should be clear and well-understood by all stakeholders. “Without such clarity, the [proposed disclosure framework]could create a materiality standard for reporting on climate and sustainability that differs from the materiality standard for other financial reporting and disclosure.”
The ISSB was formed by the International Financial Reporting Standards Foundation, which likewise supervises the International Accounting Standards Board, and ABA anticipates ISSB requirements to be prominent around the world amongst those in both the financial investment and regulative neighborhoods, no matter the last SEC guidelines.