• Investors demand consistent, comparable sustainability data to inform decisions.
• IFRS Foundation releases a guide to help companies voluntarily adopt ISSB Standards.
• Leading investors like BlackRock and Vanguard encourage adoption through proxy voting guidelines.

Investors Push for Global Reporting Standards

Global investors are calling for companies to voluntarily apply the International Sustainability Standards Board (ISSB) Standards, even in the absence of regulatory requirements. This push is driven by the need for consistent and comparable sustainability-related financial disclosures to make informed decisions.

To meet this growing demand, the IFRS Foundation has published a guide titled Voluntarily applying ISSB Standards—A guide for preparers at New York Climate Week. This guide provides clear steps for companies seeking to align their reporting with ISSB Standards, even in jurisdictions where it’s not yet mandatory.

A Global Baseline for Disclosures

The ISSB Standards are designed to help companies navigate fragmented reporting systems. In an increasingly interconnected global market, sustainability disclosures serve as a passport for meeting investor demands and varying regulatory requirements.

“For sustainability information to support investment decisions, risk management processes and ownership activities across a diversified portfolio, it must be consistent and comparable across companies and over time,” said Carine Smith Ihenacho, Chief Governance and Compliance Officer at Norges Bank Investment Management.

Investors Take the Lead

Major investors, including BlackRock, Vanguard, and Capital Group, are encouraging companies to adopt these standards through their proxy voting guidelines. Jonathan Bailey, Global Head of ESG and Impact Investing at Neuberger Berman, emphasized, “We encourage companies to apply ISSB Standards voluntarily in their investor communications. This is essential for providing high-quality, comparable information for informed decisions.”

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ISSB Chair Emmanuel Faber echoed this sentiment: “With many frameworks now consolidated into the ISSB, the voluntary application guide helps companies navigate from their current reporting practices to applying ISSB Standards, providing a cost-effective route for decision-useful financial information.”

As more jurisdictions adopt sustainability disclosure requirements, applying ISSB Standards will become critical. Investors are not waiting for mandates—they want clarity and comparability now. The IFRS Foundation’s new guide offers companies the tools they need to provide globally relevant disclosures, ensuring investors can compare performance across markets effectively.