· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Financial Times or enjoy below:
🗞️ Driving the news: Milton Friedman’s doctrine on corporate responsibility remains relevant today, urging businesses to maximize value while adhering to societal rules
• The International Sustainability Standards Board (ISSB), created in November 2021, is working to establish a global baseline for sustainability reporting, essential for identifying material business risks
• With final standards published in June, jurisdictions representing over half of global GDP are moving toward adopting these guidelines
🔭 The context: Despite societal changes due to factors like climate change and digitization, the responsibilities of company owners, boards, and executives remain consistent
• The ISSB standards aim to unify ESG reporting frameworks, simplifying the process for companies and providing clearer insights for investors
🌍 Why it matters for the planet: Adoption of ISSB standards is critical for businesses to align strategies with sustainability goals by identifying and disclosing material risks and opportunities
• The standards also introduce the principle of proportionality, benefiting small and medium-sized enterprises by allowing gradual improvements in sustainability reporting
⏭️ What’s next: As national consultations progress, board directors face a decision—advocate for ISSB standard adoption or risk undermining crucial sustainability disclosures
• These insights are vital not just for investors but for the long-term success of the companies
💬 One quote: “Has a board discharged its duty to the company if it has not compelled management to identify the material sources of risk and opportunity at the nexus of the business?”
📈 One stat: Jurisdictions representing more than half of global GDP are taking steps toward adopting the ISSB standards, indicating strong support for unified sustainability reporting
Click for more news covering the latest on social responsibility
