The trustees of the IFRS Foundation has appointed Emmanuel Faber to serve as the inaugural chair of the International Sustainability Standards Board (ISSB), effective 1 January 2022.
The appointment follows the announcement at COP26 in November about the creation of the ISSB; the consolidation of the Climate Disclosure Standards Board and the Value Reporting Foundation (which houses the Integrated Reporting Framework and the SASB Standards) into the IFRS Foundation; and the publication of prototype general disclosures and climate disclosure requirements developed by the Technical Readiness Working Group.
The ISSB will work in close cooperation with the International Accounting Standards Board (IASB) to ensure connectivity and compatibility between IFRS Accounting Standards and IFRS Sustainability Disclosure Standards.
Faber has significant global experience, having lived in and held senior leadership positions across four continents—Africa, the Americas, Asia and Europe. He founded and chairs several international organisations and initiatives, including the One Planet Business for Biodiversity coalition and the G7 Business for Inclusive Growth coalition―co-chaired with the OECD Secretary General.
IFRS Foundation Trustees chair Erkki Liikanen 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.
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 ESG standards that inform global capital allocations, market prices and cost of capital, working alongside the IASB.
The appointment of Faber, which is for an initial three-year term, is supported by the IFRS Foundation Monitoring Board, which oversees various aspects of the governance of the IFRS Foundation.