The International Financial Reporting Standards Foundation (IFRS) announced today the appointment of former Danone CEO and Chairman Emmanuel Faber as the first chair of the International Sustainability Standards Board (ISSB), leading the newly established organization as it works to develop global sustainability disclosure standards. Faber will take on the new role effective 1 January 2022.
Erkki Liikanen, Chair of the IFRS Foundation Trustees, said:
“Emmanuel Faber has been a long-term proponent of companies factoring sustainability matters into their strategy and in their reporting to the markets. His global leadership skills and drive make him the ideal inaugural ISSB Chair to lead the development of standards to meet investors’ demand for information about climate and other sustainability matters.”
The appointment follows the official launch of the ISSB at the COP26 climate conference in November, along with the consolidation of leading sustainability reporting standards organizations the Climate Disclosure Standards Board (CDSB) and the Value Reporting Foundation into the IFRS Foundation. The ISSB sits alongside the International Accounting Standards Board (IASB), with both boards overseen by the IFRS Foundation Trustees.
Andreas Barckow, IASB Chair, said:
“Congratulations to Emmanuel on his appointment. I look forward to working closely with him and his board to serve the information needs of investors.”
The ISSB aims to develop IFRS Sustainability Disclosure Standards, in order to provide a global baseline of disclosure requirements that can be used by jurisdictions on a standalone basis or incorporated into broader reporting frameworks. The ISSB’s first public consultation for two disclosure-focused standards, including one focused specifically on climate-related disclosure, and another setting out general sustainability disclosures, is expected to be published during the first quarter of 2022.
Faber served as CEO of Danone from 2014 until his resignation earlier this year following a activist investor campaign. While at Danone, the company launched numerous initiatives aimed at helping investors and creditors assess the impact of sustainability factors on the business. Faber also founded and chaired the One Planet Business for Biodiversity coalition and the G7 Business for Inclusive Growth coalition.
Faber said:
“Investors are demanding high quality, globally comparable sustainability information on which to make informed investment decisions. The ISSB represents a once-in-a-generation opportunity to fulfil that need in a fast-changing world, where climate in particular will drive major shifts in the coming years. We should move diligently and build on the great momentum resulting from the formation of the ISSB at COP26. I’m excited about the opportunity to work with stakeholders across the world in developing ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. standards that inform global capital allocations, market prices and cost of capital, working alongside the IASB.”
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