The International Sustainability Standards Board (ISSB) has developed the first global sustainability reporting standards, which will become mandatory in many countries from 1 January 2024.
The standards will measure how companies protect themselves against environmental risks and other sustainability issues, such as the use of forced or cheap labour.
The ISSB's two initial standards, which will be released by the end of Q2 2023, will help clothing and textile companies and other sectors report how they are affected by climate change and the environment.
The aim of the standards is to help investors assess the long-term value of listed companies, with sustainability reports issued alongside standard financial statements.
The new standards are expected to become mandatory in the UK, EU, Canada, South Africa and Australia, among other countries. The GRI, which remains independent of the ISSB, has announced it will create its own sustainability reporting standard for the clothing, footwear and textile sector.