Emmanuel Faber has been appointed as Chair of the newly established International Sustainability Standards Board
Former CEO of Danone, Emmanuel Faber, has been appointed as Chair of the newly established International Sustainability Standards Board (ISSB).
The International Financial Reporting Standards (IFRS) Foundation, a not-for-profit that creates financial reporting standards, announced the appointment last week, confirming the position will become effective from 1 January 2022.
The IFRS Foundation announced the creation of the ISSB at the COP26 Climate Summit in November as a new body to develop sustainability disclosure standards. The ISSB aims to set a global baseline for disclosure requirements that would provide investors with high quality, globally comparable corporate sustainability information.
As the CEO of Danone, Faber lead numerous initiatives aimed at helping investors and credit providers understand how sustainability factors might affect their risk assessments. He also founded and chaired the environmental organisation One Planet Business for Biodiversity coalition and launched both Danone Communities, a funding platform to bring nutrition and water access to vulnerable communities, and the Livelihoods Venture, which provides funding for ecosystem restoration and the development of sustainable farming practices in emerging economies.
“Investors are demanding high quality, globally comparable sustainability information on which to make informed investment decisions,” said Faber. “The ISSB represents a once-in-a-generation opportunity to fulfil that need in a fast-changing world, where climate in particular will drive major shifts in the coming years.
“We should move diligently and build on the great momentum resulting from the formation of the ISSB at COP26. I’m excited about the opportunity to work with stakeholders across the world in developing ESG standards that inform global capital allocations, market prices and cost of capital, working alongside the IASB.”
Welcoming the appointment, Erkki Liikanen, chair of the IFRS Foundations Trustees, said: “Emmanuel Faber has been a long-term proponent of companies factoring sustainability matters into their strategy and in their reporting to the markets. His global leadership skills and drive make him the ideal inaugural ISSB Chair to lead the development of standards to meet investors’ demand for information about climate and other sustainability matters.”
Nominations for the remaining ISSB members will open shortly, with the announcement of Vice Chairs and senior staff members expected soon. The ISSB expects to publish its first public consultation on a proposed general disclosure requirements standard and a climate disclosure standard during the first quarter of 2022.