ISSB Framework Sustainability Disclosures Adoption Pathways for Pan African Federation of Accountants (PAFA) Country Jurisdictional Integrated Roadmap Requirements

Abstract

IFRS Foundation’s jurisdictional roadmap development tool mandates country jurisdictions to adopt credible sustainability disclosure roadmaps either on a full / partial adoption or based on their country specific jurisdictional sustainability disclosure requirements, incorporating jurisdictional functional outcomes that are aligned with ISSB framework. A solid roadmap foundation premised on Environmental, Social and Governance (ESG), and climate strategy goals aligned with global reporting standards is paramount for credible sustainability roadmaps. The European Union (EU) in attainment of their public policy enhancement disclosures, aligned with the Green deal initiative and EU Taxonomy, launched the Corporate Sustainability Reporting Directive (CSRD) that adopted the double materiality concept based European Sustainability Reporting Standards (ESRS), which are interoperable with the ISSB framework especially on the investor focused financial materiality concept. The African Association of Accountants Generals (AAAG) resolved on the adoption of IPSAS aligned international sustainability reporting standards, that discloses metrics on climate finance budgeting and risks that disclose long term climate liabilities, in edification of risk management inclusivity and public value accountability. An empirical study was adopted focussing on the Pan African Federation Accountants (PAFA) across all the African jurisdictions. The International Sustainability Standards Board (ISSB) framework currently with two sustainability standards (IFRS S1 and IFRS S2), is relatively fast gathering momentum as the most preferred capital providers and investors focussed international sustainability standards baseline. The findings revealed that although PAFA may have unreservedly adopted the full ISSB framework, PAFA members on their own still have the prerogative to adopt one of the five ISSB approved adoption jurisdictional pathway toolkit, and still be compliant. The findings further demonstrated that the ISSB sustainability disclosure integrated roadmaps implementation may be implemented through five (5) main approved pathways. Country jurisdictions should therefore adopt one of these five (5) ISSB sustainability adoption toolkit adoption roadmaps adoptions and not necessarily only consider the wholesome full ISSB framework sustainability adoption option.