ISSB’s Industry-Based Guidance

In a continued effort to help companies with reporting the S1 and S2 standards, ISSB (the International Sustainability Standards Board) has introduced its Industry-Based Guidance (IBG). As we have discussed in previous blogs, the ISSB Standards require entities to disclose industry-specific information associated with sustainability-related risks and opportunities. Having said that, the Standards do not define industry-specific information that companies are required to disclose.

Thus, trying to help bridge this gap, this tool is designed to help organizations decide which industry-specific information is most relevant to report on based on their business model. It also provides specific metrics and technical protocols to help define, calculate, and present information. It includes guidance for 77 industries and covers a broad spectrum of sustainability-related topics, including climate-related content.

This should improve the quality and comparability of data among sector peers, leading to more informed decision-making. Do note that applying the guidance is not mandatory to assert compliance with ISSB Standards, but we do agree that the ISSB industry-based guidance can be useful for all new reporters.

So how do you do use this? Similarly to what companies used to do with SASB, we recommend the following steps:

1. Identify the industry or industries that best match your business model and activities.
2. Review the suggested disclosure topics and metrics to determine which are relevant to your operations and value chain.
3. Assess existing documentation, controls, and oversight within your organization to find your base line.
4. Come up with a plan that will improve the level of information you can get in future years (if what you have is not enough).

It is important to acknowledge that sustainability-related risks and opportunities don’t just come from your direct operations and management systems. They can also arise from suppliers, distributors, and other partners that make up your value chain. Macroeconomic and regulatory variables could also play a key role in how impactful certain issues can be for your business.

The ISSB Industry-Based Guidance is a powerful tool for improving sustainability reporting. It helps you focus on what’s relevant for your sector, apply consistent metrics, and connect sustainability to enterprise value. Yes, it takes effort and judgment—but we believe it’s worth it.

I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.

Best,

Marimar

CEO, Miranda ESG