Latest disclosure update

Global standards, benchmarks and taxonomies move to align for greater interoperability - the EU proposes new sustainable financial product labels. Here is the latest.

TNFD and EFRAG release alignment mapping  

The Taskforce on Nature-related Financial Disclosures (TNFD) and the European Financial Reporting Advisory Group (EFRAG) have mapped the European Sustainability Reporting Standards (ESRS) to the TNFD disclosures.

The move improves harmonisation and enabling the EUs Corporate Sustainability Reporting Directive (CSRD) compliance for entities through a formal memorandum of understanding (MoU).

This ensures that all 14 TNFD recommended disclosures are reflected in the ESRS.

ISSB Standardised reporting 

The International Sustainability Standards Board (ISSB), the independent standard-setting body within the International Financial Reporting Standards (IFRS) Foundation, has moved to standardise reporting.

The plan is to "streamline and consolidate frameworks and standards", prioritising connectivity between IFRS sustainability and financial disclosure standards, as well as interoperability with other frameworks.

The move is part of its two-year work plan to support the implementation of its reporting standards.

GRI Taxonomy launches public consultation  

Last week, the Global Reporting Initiative (GRI) released its new GRI Sustainability Taxonomy draft for public consultation.

The digital taxonomy will help entities organise and classify disclosures and information according to the GRI standards and increase opportunities for interoperability.

EU regulators move to improve Sustainable Finance Disclosure Regulation 

The European Union regulators have proposed changes to the Sustainable Finance Disclosure Regulation's (SFDR) classification of sustainable investment products.

The changes include two voluntary product categories, 'sustainable' and 'transition', to prevent greenwashing.

'Transition' investments are products that are not yet sustainable, while the 'sustainable' category focuses on environmentally sustainable products as per the EU Taxonomy.

The European Supervisory Authorities (ESAs) that published the joint opinion are the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA).