Story: Mohammed Abu, Accra.
The London, UK based Energy & Environment Alliance (EEA) has lauded, the issuance of the inaugural standards, IFRSS S1 and IFRS S2 yesterday by the International Sustainability Standards Board(ISSB) while also noting that, this moment marks the beginning of a new era in which sustainability action and disclosure is no longer voluntary but now mandatory.
IFRS S1 provides a set of disclosure requirements designed to enable companies to communicate to investors about the sustainability-related risks and opportunities they face over the short, medium and long term.
IFRS S2sets out specific climate-related disclosures and is designed to be used with IFRS S1. Both fully incorporate the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Ufi Ibrahim, CEO, EEA, in an official statement issued in London, Tuesday, notes, “The new standards which initially focus on materiality disclosure, will transform business as usual, embedding sustainability and broader ESG considerations in every aspect of running a business. S1 and S2 will come into effect in the 2024 financial year; so, that gives us just a few months to prepare the hospitality industry for adoption of the new disclosure rules.”
The EEA, the statement disclosed, has already established a working group of industry leaders and experts to deliver meaningful guidance to EEA members and to work with the IFRS and ISSB on the development of sector specific standards.
“It is critically important that our industry unites to provide collective and considered input to the IFRS process because the new requirements will impact all our businesses and all our asset values”, Ufi Ibrahim intimated.
“With this formal announcement, the Alliance calls on industry leaders, investors and risk and compliance officers to support the EEA working group”, she added.
EEA has been established to help the global hospitality industry achieve net zero carbon and ESG (environmental, social and governance) stewardship,
