The CEOs of 11 pension funds managing more than $2 trillion in assets called on their portfolio companies to adopt the new International Sustainability Standards Board (ISSB) disclosure framework to mitigate risks related to climate change and social issues. (The Logic)
Talking point: Identifying and addressing environmental, social and governance issues can “significantly contribute to value creation or erosion,” the pension CEOs said in their joint statement. But a major barrier to disclosing and addressing that information is the scores of competing frameworks for companies to choose from. The new standards, released Monday, are expected to address that problem by consolidating existing frameworks, and could become the global standard for ESG reporting.