Michiel Van der Lof’s Post

The more regulated framework keep coming in a various form to tackle and address the climate change related risk in an organisation specifically and the world generally

𝗨𝗽𝗱𝗮𝘁𝗲𝗱 𝟮𝟬𝟮𝟰 𝗕𝗮𝘀𝗲 𝗧𝗮𝘅𝗼𝗻𝗼𝗺𝘆 𝗮𝗱𝗼𝗽𝘁𝗲𝗱 𝗮𝘀 𝗘𝗦𝗘𝗙 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻 🔊 Yesterday, on January 15, 2025, the European Commission officially published the sixth version of Delegated Regulation (EU) 2025/19, amending the technical regulatory standards in Delegated Regulation (EU) 2019/815 to reflect the 2024 update of the 𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗦𝗶𝗻𝗴𝗹𝗲 𝗘𝗹𝗲𝗰𝘁𝗿𝗼𝗻𝗶𝗰 𝗙𝗼𝗿𝗺𝗮𝘁 (𝗘𝗦𝗘𝗙) Taxonomy. This update replaces the previous version, Regulation (EU) 2022/2553, and introduces the latest Base Taxonomy developed by the European Securities and Markets Authority (ESMA). The 2024 Taxonomy is now aligned with the IFRS Accounting Taxonomy 2024, published by the IFRS Foundation in March 2024. 𝗞𝗲𝘆 𝗵𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀 ✅ The updated Taxonomy applies to financial years starting on or after January 1, 2025 ✅ Issuers may voluntarily apply the 2024 Taxonomy to financial years beginning before this date ✅ The update ensures alignment with new and amended IFRS standards and incorporates practical reporting insights and technical improvements 𝗕𝗮𝗰𝗸𝗴𝗿𝗼𝘂𝗻𝗱 The ESEF Base Taxonomy, developed by ESMA, builds upon and extends the IFRS Accounting Taxonomy. Regular updates ensure consistency with annual IFRS changes and evolving reporting practices. 📥 Read the full regulation here: https://lnkd.in/edeTEUDx #ESEF #IFRS #reporting #sustainability #accounting

Many companies will be required or will choose to disclose information about their sustainability-related risks and opportunities using both #ISSB Standards and #ESRS.    The IFRS Foundation, the European Commission and EFRAG achieved a high degree of alignment of climate-related disclosures between ISSB Standards and ESRS, but compliance with one set of standards does not ensure compliance with the other.    To help companies, the IFRS Foundation and EFRAG have published interoperability guidance, which:  📖 Explains the alignment; 📖 Provides practical support that explains how a company can comply with both sets of standards; 📖 Includes detailed analysis of climate-related disclosures; and 📖 Explains why companies still need to refer to the standards, but makes it easier to navigate doing so.    Find out more below about the key takeaways from the interoperability guidance.    Access the ESRS–ISSB Standards Interoperability Guidance: https://lnkd.in/dE5KNHeZ 📺 You will be able to hear more about the interoperability guidance in an upcoming webcast. To receive updates on the webcast, sign in to your IFRS account, go to your dashboard and choose to follow 'Applying IFRS sustainability standards': https://lnkd.in/eb4WUZhS     #IFRSsustainability #ISSB #ISSBstandards #interoperability

New Year Eve reading: In the latest webcast, the ISSB shares built-in mechanisms to ensure that all companies, including smaller companies and those in developing markets, can apply them. What are the two proportionality mechanisms? *Use all reasonable and supportable information that is available at the reporting date without undue cost or effort *Commensurate with the skills, capabilities and resources that are available to the company These proportionality mechanisms support the application of IFRS S1 and IFRS S2—they help companies with different levels of capability and preparedness to apply the ISSB Standards. Sharon Leung,Gemma Rastelli Anna Ruta

"To assist companies applying a climate-first approach using ISSB Standards, Table 1 provides a description of the requirements in IFRS S1 that are applicable when reporting on climate-related risks and opportunities in accordance with IFRS S2".

[#ASRS] [#IFRSSDS] The Australian Accounting Standards Board (AASB) continues to increase the alignment of ASRS with IFRS SDS. On 26th June, the AASB Board decided to remove from the draft ASRS a number of requirements that were specific to Australia: ❌ The use of a minimum of 2 climate-related scenarios, including a 1.5 degree above pre-industrial levels scenario is no longer required. ❌For scope 3, the possibility to use preceding reporting period data if reliable current reporting period data is unavailable has been removed. ❌For financed emissions, the possibility for financial institutions to consider the applicability of disclosing in line with IFRS S2 requirements (para B61-B63) has been removed. The final version of the ASRS is expected to be released in the coming months.

It’s important that jurisdictions align as closely as possible with the IFRS Sustainability Disclosure Standards when setting their local standards. To that end, it is good to see these amendments in Australian proposals which will ensure closer alignment. #sustainability #sustainabilityreporting #ifrssds

𝗔 𝗖𝗹𝗶𝗺𝗮𝘁𝗲-𝗙𝗶𝗿𝘀𝘁 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵 In response to concerns about data availability and companies’ readiness, the ISSB decided to provide transition reliefs in IFRS S1 and IFRS S2. A company is required to apply IFRS S1 and IFRS S2 together but paragraph E5 of IFRS S1 allows a company, in its first year of applying ISSB Standards, to disclose information on only its climate-related risks and opportunities (in accordance with IFRS S2)—the so‑called ‘climate-first’ approach. 𝗖𝗵𝗲𝗰𝗸 𝘁𝗵𝗲 𝗻𝗲𝘄 𝗴𝘂𝗶𝗱𝗲 𝗳𝗿𝗼𝗺 𝗜𝗙𝗥𝗦 𝗙𝗼𝘂𝗻𝗱𝗮𝘁𝗶𝗼𝗻!

ESG in Financial Services (Regulatory Standards): What is IFRS S1?   If you've ever worked with banks or insurers (particularly in accounting), there's no way around having heard about IFRS 9 or IFRS 17 and the International Accounting Standards Board (IASB). But did you also know that in 2021 the IFRS Foundation created the International Sustainability Standards Board (ISSB) which focuses on sustainability-related disclosure standards?   To date, the ISSB's major releases are IFRS S1 and IFRS S2. Since my intention was to learn from and with y'all, check out my summary of the S1 essentials (which will be followed by a structural overview of S1 next week). Looking forward to hearing about your thoughts on and experiences with IFRS S1 so far! #ESG #Sustainability #FinancialServices #Reporting #Disclosures X1F ADWEKO | PART OF X1F

While there are many overlaps in the #ifrs #standards, it is not a one-to-one comparison! It is important to look at this on a datapoint by datapoint level to understand the correct level of disclosure for your organization. I’m always happy to talk more about this so please reach out if you’re interested!