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Why Grant Thornton
Whether you’re growing in one market or many, looking to operate more effectively, managing risk and regulation, or realising stakeholder value, our firms can help.
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Culture and experience
Grant Thornton’s culture is one of our most valuable assets and has steered us in the right direction for more than 100 years.
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Global scale and capability
Beyond global scale, we embrace what makes each market unique, local understanding on a global scale.
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Join our network
In a world that wants more options for high quality services, we differentiate in the market to grow sustainably in today’s rapidly changing environment.
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Leadership governance and quality
Grant Thornton International Ltd acts as the coordinating entity for member firms in the network with a focus on areas such as strategy, risk, quality monitoring and brand.
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Africa
24 member firms supporting your business.
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Americas
31 member firms, covering 44 markets and over 20,000 people.
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Asia-Pacific
19 member firms with nearly 25,000 people to support you.
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Europe
53 member firms supporting your business.
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Middle East
8 member firms supporting your business.
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Business consulting services
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
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Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
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Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
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Cybersecurity
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
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Forensic services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
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Mergers and acquisitions
We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer-term strategic goals.
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Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery.
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Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
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Valuations
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
![Scanning the horizon: Mid-market sets sights on global trade growth](/globalassets/1.-member-firms/global/insights/international-campaign/2023/mid-market-sets-sights-on-global-trade-growth-464x422.jpg)
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IFRS
At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
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Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
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Global audit technology
Our global assurance technology platform provides the ability to conduct client acceptance, consultations and all assurance and other attestation engagements.
![IFRS Alerts](/globalassets/1.-member-firms/global/insights/women-in-business/2020/offset_817617-464x422.jpg)
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Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
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Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
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Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
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Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
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Transfer pricing
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
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Africa tax desk
A differentiating solution adapted to the context of your investments in Africa.
![Outlining challenges of Pillar 2 compliance for multinationals](/globalassets/1.-member-firms/global/insights/pillar-2/shutterstock_335625890_464x422.jpg)
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Banking Holding banking to account: the real diversity and inclusion pictureWe explore how the banking sector can continue to attract, retain and nurture women to build a more diverse and inclusive future.
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Sustainability From voluntary to mandatory ESG: How banks can future-proof their operationsAs we move from voluntary ESG initiatives to mandatory legislation, we explore what the banking sector needs to prioritise.
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IFRS IFRS 9 - Audit of Expected Credit LossesGPPC releases The Auditor’s response to the risks of material misstatement posed by estimates of expected credit losses under IFRS 9
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growthiQ Steering your company to long-term successHistory has something important to tell us about the difficulties of steering a business to long-term success – through seismic shifts in technology, consumer demands and product development. With that in mind it’s unsurprising that over half the world’s largest companies in the early 1900s had shut their doors by the late 1990s. Some, however, have endured.
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International Financial Reporting Standards Implementation of IFRS 17 ‘Insurance Contracts’The auditor’s response to the risks of material misstatement arising from estimates made in applying IFRS 17 ‘Insurance Contracts’
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IFRS Get ready for IFRS 17After twenty years of development the IASB has published IFRS 17 ‘Insurance Contracts’, find out more.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - Sector analysis Clear patterns of damage from COVID-19 across the industriesThe index results for 12 key sectors of the mid-market reveal just how much or little the various parts of the economy were impacted by COVID-19.
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Not for profit Mission: possible – putting impact at the heart of charityGlobal charitable continues to decline and charity leaders are increasingly looking at their own unique impact journey.
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Access to finance Raise finance to invest in changePrepare your business to raise finance to invest in change.
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Private equity firms Private equity in the mid-market: reshaping strategies for 2021When the global COVID-19 pandemic stormed across the globe in early 2020, the private equity sector was hit hard but deals are coming back to the market.
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Mid-market businesses Getting ready for private equity investmentOur specialists explore how private equity firms are now working with their portfolios and how the mid-market can benefit from investment.
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Mid-market businesses Myth-busting private equityNervous about partnering with Private Equity? We explore some of the common myths we come across when speaking to mid-market businesses about PE investment.
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Public sector Helping build the government of tomorrow, todayLearn about the Grant Thornton US public sector team.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - Sector analysis Clear patterns of damage from COVID-19 across the industriesThe index results for 12 key sectors of the mid-market reveal just how much or little the various parts of the economy were impacted by COVID-19.
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Industries European Real Estate PodcastJessica Patel, Tax Partner at Grant Thornton UK speaks with tax partners and directors across the network to share their insights on the real estate market and some of the challenges.
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Industries European Real Estate PodcastJessica Patel, Tax Partner at Grant Thornton UK speaks with tax partners and directors across the network to share their insights on the real estate market and some of the challenges.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Retail How retail is positioning for successCOVID-19 provided some hard lessons for the retail industry. It is time to turn those into sustainable and well executed growth strategies in 2021.
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Telecoms Can tech and telecom leverage economic headwindsAs most businesses brace for an economic downturn, tech and telecom could see new prospects. But, to turn the headwinds to your advantage, you need to find your unique opportunities and risks.
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Technology Mid-market tech companies lead the way on diversity and inclusionWe explore how the mid-market tech sector can continue to build and nurture a culture that’s increasingly more diverse and inclusive for women.
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Technology Responding to slowing growth: why the tech industry faces a more challenging outlook in 2022We spoke to tech experts about industry trends that could affect companies over the next 12 months and what their short-term strategic priorities should be.
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Tax Resetting global tax rules after the pandemicBusinesses are seeing rising challenges, and finance heads are dealing with a range of new measures. To say the next 12 months are critical for businesses is an understatement.
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Telecoms Can tech and telecom leverage economic headwindsAs most businesses brace for an economic downturn, tech and telecom could see new prospects. But, to turn the headwinds to your advantage, you need to find your unique opportunities and risks.
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TMT TMT industry: Fully charged or on standby?Our research revealed five key trends that resonated with Technology, Media and Telecoms (TMT) industry leaders around the world. We asked a panel of our experts from UK, US, India Ireland and Germany, to give us their reaction to the findings.
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Cybersecurity One size fits nothingTechnology companies must adopt a new approach to digital risk: those that successfully develop a reputation for digital trust by demonstrating an unwavering commitment to cyber security and data privacy will be able to carve out a competitive advantage.
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Technology, media & telecommunications Why it’s time for a 5G reality checkFigures suggest the mobile sector is maturing. While data usage continues to soar, mobile revenues are expected to flatten out over the next few years.
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International business Mid-market businesses lifted by rising tide of optimismOptimism among global mid-market business leaders rose to 67% in the first half of this year and they are markedly more optimistic about their prospects with global optimism having increased by 8%.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Hotels COVID-19: Checking in with the hotel industry one year onCOVID-19 provided some hard lessons for the hotel sector. It is time to turn those into sustainable and well executed growth strategies.
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
- By topic
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Women in Business 2024
2024 marks the 20th year of monitoring and measuring the proportion of women occupying senior management roles around the world.
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COP28: Mid-market firms should seize the opportunity from adaption and innovation
COP28 was the first time there has been a global stocktake on progress against the Paris Agreement.
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Scanning the horizon: Mid-market sets sights on global trade growth
The latest International Business Report (IBR) data shows that mid-market businesses have high expectations for global trade.
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Mid-market businesses less optimistic, despite record numbers expecting increased profitability
A closer examination of the data offers some explanation of this apparent contradiction.
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Women in leadership: a pathway to better performance
What makes the benefits of gender parity compelling is the impact it can have on commercial performance.
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Women in Business 2024
2024 marks the 20th year of monitoring and measuring the proportion of women occupying senior management roles around the world.
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Women in business: Regional picture
We saw an increase in the percentage of senior management roles held by women, on a global level, but there are some significant regional and country variations.
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Pathways to Parity: Leading the way
To push towards parity of senior management roles held by women, who leads within an organisation is vital.
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Generating real change with a long-term focus
The most successful strategy to achieve parity of women in senior management is one which stands alone, independent of an ESG strategy.
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People at the heart of great business
Businesses have started to put guidelines and incentives in place, focused on driving employees back to the office.
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Building a culture that champions diversity
Grant Thornton UAE has grown to have a team comprising more than 50 nationalities and this diverse staff has been key in building the inclusive culture of the firm.
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Focusing and developing a solid strategy around diversity, equity and inclusion
Grant Thornton Greece is pioneering a growing set of diversity, equity and inclusion (DE&I) initiatives that centre around three strategic pillars.
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Ten considerations for preparing TCFD climate-related financial disclosures
Insights for organisations preparing to implement the International Sustainability Standards Board (ISSB)’s Standards.
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COP28: Mid-market firms should seize the opportunity from adaption and innovation
COP28 was the first time there has been a global stocktake on progress against the Paris Agreement.
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Transition Plan Taskforce publishes its final disclosure framework
As organisations in the private sector make commitments and plans to reach net zero, there's a growing need for stakeholders to be able to assess the credibility of their transition plans.
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Promoting ESG excellence through tax
ESG considerations have never been more important for an organisation’s long-term success, but how can tax be used to add value to an ESG agenda?
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International business: Mid-market growth and expansion
The mid-market looks to international business opportunities for growth.
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Top five constraints to international business in the mid-market
Top five major constraints that are testing the mid-market’s ability to grow their businesses internationally.
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Brand and international marketing – breaking global barriers
Brand has been identified as a key driver of mid-market success when looking to grow and develop international business.
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The key to international business: Investing in people
How can recruitment and retention help grow international business?
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Building resilience in international business
Evolving supply chains and trade patterns amid ongoing global uncertainty.
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IFRS Alerts
IFRS Alerts covering the latest changes published by the International Accounting Standards Board (IASB).
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Example Financial Statements
General guidance for preparers of financial statements that supports the commitment to high quality, consistent application of IFRS.
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Insights into IFRS 2
Insights into IFRS 2 summarises the key areas of the Standard, highlighting aspects that are more difficult to interpret and revisiting the most relevant features that could impact your business.
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IFRS 3
Mergers and acquisitions are becoming more common as entities aim to achieve their growth objectives. IFRS 3 ‘Business Combinations’ contains the requirements for these transactions.
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IFRS 8
Our ‘Insights into IFRS 8’ series considers some key implementation issues and includes interpretational guidance in certain problematic areas.
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IFRS 16
Are you ready for IFRS 16? This series of insights will help you prepare.
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IAS 36
Insights into IAS 36 provides assistance for preparers of financial statements and help where confusion has been seen in practice.
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IFRS 17
Explaining the key features of the Standard and providing insights into its application and impact.
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Pillar 2
Key updates and support for the global implementation of Pillar 2.
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Global expatriate tax guide
Growing businesses that send their greatest assets – their people – overseas to work can face certain tax burdens, our global guide highlights the common tax rates and issues.
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International indirect tax guide
Navigating the global VAT, GST and sales tax landscape.
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Global transfer pricing guide
Helping you easily find everything you need to know about the rules and regulations regarding transfer pricing and Country by Country reporting for every country you do business with.
![insight featured image](/contentassets/ba3cf5921fa2405a8136ed5f0596feb2/offset_720730_1440x600.jpg)
Corporate Sustainability Reporting Directive (CSRD) - a game-changing EU regulation
In January 2023 the Corporate Sustainability Reporting Directive (CSRD) entered into force, following its adoption by the European Council on 28 November 2022. The new directive revises the 2014 Non-Financial Reporting Directive (NFRD), and significantly extends the scope of covered companies (ie it no longer impacts only companies that are headquartered in the EU) and strengthens the reporting requirements for in-scope companies.
The CSRD introduces substantial sustainability-related reporting requirements, with small variations for the different companies in scope. All relevant disclosures will now extend to the reporter’s value chain, including products and services, business relationships and supply chain. You can find more information on the main additions to the disclosure requirements in our article ‘The CSRD - a game-changing EU regulation’.
ISSB issues its first sustainability standards
In June 2023, the International Sustainability Standards Board (ISSB) issued its first two international sustainability standards (the Standards):
- IFRS S1 ‘General Requirements for Disclosure of Sustainability-related Financial Information’
- IFRS S2 ‘Climate-related Disclosures’
The Standards become effective for periods beginning on or after 1 January 2024. Together they mark the start of a new era of requiring reporting entities to make sustainability related disclosures and a global baseline of sustainability-related standards.
IFRS S1 sets out the overall requirements for a reporting entity to disclose sustainability-related financial information about its sustainability-related risks and opportunities. This will enable reporting entities to communicate to investors about the sustainability-related risks and opportunities they face over the short, medium and long term.
IFRS S2 sets out specific requirements for the identification, measurement and disclosure of climate-related financial information and is designed to be used in conjunction with IFRS S1.
The four pillars of governance, strategy, risk management and metrics & targets from the Taskforce on Climate-Related Financial Disclosures (TCFD) have been used to develop the Standards.
These Standards create a common language for disclosing sustainability risks and opportunities, initially focusing on climate-related risks and opportunities, to achieve global comparability. Together these two Standards will provide decision-useful, sustainability related information for investors.
Since the issuance of IFRS S1 and IFRS S2, the ISSB has sought feedback on its priorities for its next two-year work plan through a public consultation process which ended on 1 September 2023. We responded to the ISSB’s Request for Information and our comment letter can be read here. The ISSB is currently reviewing the feedback that has been received with a view of finalising its work plan in the first half of 2024.
You can read more on the requirements set out in the Standards as well as details of the effective date and transition relief in our article ‘Overview of IFRS S1 and IFRS S2’.
EU Taxonomy Delegated Acts
In June 2023, the European Commission (EC) adopted a package of measures including the EU Taxonomy Delegated Acts. The new legislation includes additions to the EU Taxonomy criteria for economic activities making a substantial contribution to one or more of the non-climate environmental objectives, namely:
- sustainable use and protection of water and marine resources
- transition to a circular economy
- pollution prevention and control, and
- protection and restoration of biodiversity and ecosystems.
You can read more details on the package on the EC website, see the press release and EU taxonomy for sustainable activities page.
Amendments to climate-related SASB Standards
In June 2023, the ISSB updated the Sustainability Accounting Standards Board (SASB) Standards to align the climate-related disclosure topics and metrics with IFRS S2 ‘Climate-related Disclosures’.
The SASB Standards consist of 77 industry-based sustainability-related disclosure standards and include over 1,000 metrics. While they were not developed by the ISSB, the ISSB has been responsible for the maintenance and enhancement of these SASB Standards since the consolidation of the Value Reporting Foundation (VRF) with the IFRS Foundation in August 2022.
Appendix B of IFRS S2 sets out industry-based requirements and these have been derived from the climate-related topics and metrics in the SASB Standards. As a result of the ISSB including industry-based metrics in IFRS S2, consequential amendments were made to the SASB Standards in two areas:
- revisions to align the SASB Standards with the application guidance in IFRS S2 on the topic of financed emissions and
- revisions to align the SASB Standards with the industry-based guidance in IFRS S2. This includes changes to metrics to enhance their international applicability and to remove inconsistencies of metrics across industries. Also metrics were removed if the ISSB did not identify a way to enhance international applicability.
The consequential amendments to the SASB Standards are effective for annual reporting periods beginning on or after 1 January 2024, with early application being permitted. This is consistent with the effective date of IFRS S2.
Final European Sustainability Reporting Standards (ESRS) adopted by Europe
In August 2023, the EC issued the final regulation supplementing the CSRD regarding sustainability reporting standards to be followed in the European Union (EU). The European Sustainability Reporting Standards (ESRS) apply to all companies within the scope of CSRD. It is important to note, some reporting entities within the scope of CSRD will have to apply ESRS for reporting periods commencing on or after 1 January 2024.
The package contains the EC’s Delegated Act which sets out two cross-cutting standards and ten other sustainability standards for the disclosure of environmental, social and governance (ESG) information. Together they will become law in the EU from 1 January 2024. The package (sometimes called the first set of ESRS) also contains two appendices. Appendix I sets out the revised 12 ESRS and Appendix II provides a list of acronyms and a glossary of terms.
Since the initial finalisation of the Standards, a group of Members of the European Parliament (MEPs) filed an objection to the current ESRS as they believe they are too burdensome. This objection called for potential limitations to the ESRS, however this objection was defeated in October 2023. There are 631 MEPs, and 359 voted against the motion, 261 in favour and 11 did not vote.
There is also a delay to the sector-specific ESRS (SS-ESRS) by two years (June 2024 to June 2026) to allow for a sufficient transition period in preparing for the sector-specific requirements.
Listed small and medium-sized enterprises (SMEs) are required to report sustainability information commencing 2026. For non-listed SMEs that are not in the scope of the CSRD, European Financial Reporting Advisory Group (EFRAG) are drafting voluntary standards that will be simpler and enable them to respond to requests for sustainability information.
You can find more detail on the requirements set out in the standards by reading our article 'Final ESRS adopted by Europe', as well as 'CSRD Reporting: What you need to know'. Both articles were written to help you understand more about the CSRD and the ESRS that have been released.
Taskforce on Nature-related Financial Disclosures (TNFD) published its final framework
In September 2023, the Taskforce on Nature-related Financial Disclosures (TNFD) released its final set of recommendations and disclosure framework. These recommended disclosures and related guidance build on the work of the TCFD and other climate and sustainability reporting standards and frameworks, but with a focus on an entity’s impact on ecosystems and biodiversity.
The TNFD was established in 2021, acknowledging the increasing need from stakeholders to factor nature into financial and business decisions. Its aim is to establish the importance of nature and its biodiversity within business and finance. The recommendations will help businesses and financial institutions integrate nature-related issues into decision-making, risk management and disclosures. As mentioned, it builds on the work on the TCFD, and doing this should encourage early adoption and promote alignment with existing risk management approaches.
There are six general requirements and 14 recommended disclosures set out in the TNFD. You can read more on the TNFD in our article ‘The TNFD publishes its final framework’.
EFRAG-GRI joint statement of interoperability
In September 2023, the Global Reporting Initiative (GRI) and EFRAG issued a joint statement regarding the high level of interoperability reached between the ESRS and GRI Standards.
The effort to achieve interoperability between the two frameworks is the result of the CSRD requirement to adopt a double materiality approach and consider existing standards. As noted in the joint statement, the ESRS adopted the GRI definition of impact materiality and also leveraged the GRI’s existing expertise.
You can read here their joint statement of interoperability [pdf, 104kb].
California adopts new legislation on climate reporting
In October 2023, the state of California signed into law two bills introducing new climate-related reporting and disclosure requirements. The two bills, Senate Bill (SB) 253 ‘Climate Corporate Data Accountability Act’, and SB 261 ‘Greenhouse gases: climate-related financial risk’, expand the amount of information that needs to be disclosed by companies operating in the state of California. You can read a summary of the requirements and who they apply to in our article ‘California adopts new legislation on climate reporting’.
This legislation is another example of increasing climate reporting requirements around the world. For reporting entities that now fall within the scope of these two bills, a significant amount of effort will be required to collect and present the data and information required. Companies will need to plan carefully to meet all the new requirements.
Reporting of scope 3 Greenhouse Gas (GHG) emissions in particular can be challenging as reporting entities will need to consider their whole value chain, both up and downstream. Although the bills do not include non-US entities, it is likely that international businesses with legal entities operating in California will be caught by the requirements if they meet the revenue thresholds.
The Transition Plan Taskforce published its final disclosure framework
In October 2023, the Transition Plan Taskforce (TPT) published its final disclosure framework. Established in the UK in 2022, the TPT aims to help organisations meet their climate goals and support the UK government’s pledge to achieve net zero by 2050. While its newly developed framework has been developed in the UK, it has global applicability and is designed to be consistent with, and build on, IFRS S2.
The goal of the TPT Disclosure Framework is to develop a standard for climate transition plans. As reporting entities in the private sector make commitments and plans to reach net zero, there's a growing need for stakeholders to be able to assess the credibility of their transition plans. The TPT aims to drive good practice based on three key principles: ambition, action and accountability.
We are supportive of the release of this framework, as it will help entities with the disclosure of their transition plans. As a result of the impact climate is now having on organisations around the world, entities are developing transition plans in order to be more climate-efficient and have lower carbon business models. This framework will help them to develop and disclose these plans.
While the ISSB Standards do not currently require entities to put transition plans in place, IFRS S2 does require disclosure of information about any climate-related transition plans that the entity has. This means it should complement the ISSB Standards and provide a useful tool for entities developing their transition plans which will then help inform the disclosure requirements of IFRS S2.
You can find more details on the key principles of the framework in our article ‘The TPT publishes its final disclosure framework’.
ESMA 2023 enforcement priorities for non-financial reporting
In October 2023, the European Securities and Markets Authority (ESMA) issued a statement on European common enforcement priorities for 2023 annual financial reports. These enforcement priorities give preparers insight into specific areas that ESMA, as well as national enforcers in the European Economic Area (EEA), are focusing on and gives an opportunity to ensure that reporting requirements in these areas are complied with in full. The statement includes detailed recommendations for preparers, issuers and auditors to consider when preparing 2023 reporting packages to help with compliance of the Standards.
The priorities for non-financial reporting include, in order of priority:
- Disclosures relating to Article 8 of the Taxonomy Regulation
The financial year of 2022 was the first year where non-financial undertakings are required to report on both taxonomy eligibility and taxonomy alignment. ESMA reminds issuers that it is mandatory for them to use the latest reporting templates set out in the Article 8 Delegated Act, and issuers are not to adapt or amend these. In addition, ESMA reminds issuers to avoid double counting calculating the Key Performance Indicators required by the Taxonomy Regulation. - Disclosures of climate-related targets, actions and progress
ESMA reiterates the importance of increased transparency in reporting on climate-related matters, and this is even more relevant given the enhanced disclosures required by the CSRD. In particular, disclosures of climate-related targets should be given particular attention. - Scope 3 emissions
In March 2023, ESMA highlighted (in its 2022 report on the Corporate Reporting Enforcement and Regulatory activities) that significant improvements could be made to some aspects of non-financial disclosures, including those on scope 3 GHG emissions. Information of Scope 3 emissions is an important part of an issuer’s sustainability report and more disclosures on this topic will be required under the CSRD. Therefore ESMA reminded preparers of these again in their 2023 enforcement priorities.
You can access the full ESMA statement here [pdf, 226kb].
Grant Thornton declares support for global climate reporting standard
In December 2023, we signed a declaration of support to the IFRS Foundation and particularly to the ISSB in their advancement of the adoption and use of their climate Standard. This declaration of support was announced during Finance Day at COP28, the United Nations Climate Change Conference that was held in Dubai.
The declaration of support demonstrates the strong support to advance action-oriented responses to the risk of climate change. It states:
“Climate risks are increasingly having a real effect on companies and capital. Therefore—in response to calls for climate action at COP28—we support the establishment of market infrastructure to enable consistent, comparable climate-related disclosures at a global level. We are committed to advancing the adoption or use of the ISSB’s Climate Standard as the climate global baseline.”
Close to 400 organisations from 64 jurisdictions, including associations gathering over 10,000 member companies and investors signed the declaration.
You can get more information in our article ‘Grant Thornton declares support for global climate reporting standard’ and you can view the signatories here.
SASB Standards updates enhance international applicability of non-climate related metrics
Following on from the amendments made to climate-related SASB Standards in June 2023, in December 2023, the ISSB published the second set of amendments to the SASB Standards which aim to strengthen the international applicability of non-climate related metrics. The amendments are intended to help reporting entities apply the SASB Standards regardless of the jurisdiction they are in or the generally accepted accounting principles (GAAP) they report under. However, they are not intended to significantly alter the structure or intent of the SASB Standards.
While the amendments in June 2023 addressed the climate-related disclosure topics covered within IFRS S2, these amendments aim to remove the jurisdiction-specific references from non-climate related disclosure topics and metrics. Therefore, aiming to assist reporting entities when applying IFRS S1. There are approximately 650 non-climate related metrics, and from these, 220 metrics are impacted by these revisions.
These amendments are effective for annual reporting periods beginning on or after 1 January 2025, with early application being permitted. This means the impact of the amendments will be initially seen in 2026 for reporting entities applying the Standards to their 31 December 2025 reporting cycles.
You can find further details in our article ‘ISSB publishes amendments to enhance international applicability of SASB Standards’.
What to expect in 2024
We are anticipating sustainability-related developments, particularly in relation to the implementation of new requirements, will continue to accelerate in 2024. There is a joint meeting scheduled between the ISSB and the IASB in January 2024 where the ISSB will provide feedback on its agenda consultation that it underwent in 2023. The ISSB is aiming to finalise its work plan in the first half of 2024.
The first wave of companies will start to apply the ESRS Standards for the first time in 2024. We are expecting implementation guidance from EFRAG to be issued (currently in draft) in relation to materiality assessment, value chain and ESRS datapoints to assist companies in implementing these Standards.
Additionally, we are awaiting an announcement on a final sustainability-related reporting framework from the U.S. Securities and Exchange Commission (SEC).
This will likely be a big year and we will be publishing articles as new developments occur. Keep an eye on our sustainability insights to stay on top of the 2024 sustainability-related news.