ISSB: companies ‘required to report scenario planning results’
The International Sustainability Standards Board (ISSB) has confirmed that it will require companies to report results from climate-related scenario planning in their resilience-related disclosures. The ISSB is a standard-setting body set up by the IFRS Foundation. With regard to the choice of methodology, the ISSB stated that TCFD guidance is expected to be followed: “The ISSB will refer to TCFD guidance that sets out types of scenario analysis, including quantitative, partially quantitative and qualitative. The ISSB agreed that it would build on the TCFD guidance, specifying that scenario analysis must be applied but setting out the required approach that is scalable to an entity’s circumstances”. Support will be offered to entities in this process, including through application guidance on choosing a scenario based on specific circumstances.