Establishing One Global ESG Standard Governance of a Globally Representative Standard toward Net-Zero Achievement at today's Sustainability Crossroads • International Sustainability Standards Board (ISSB) has been established in recognition of the international community at UK COP26 in order to inform climate-related risks and opportunities, notably in guidance of forward-looking market and policy decision at today's sustainability and net-zero crossroads; • Leadership highground of the proposal inherently focuses on prospect of long-term sustainability outlook, substantiated by forward-looking choices at the ongoing transition on the shared premise of governance processes with corresponding reform strategy, risk management and impact measurement; • Climate change and consequential impact to the economy and the society are viewed in this sense as a common challenge to the global sustainable future, especially in the sense of physical (climate-change impact to relevant assets across value chains) and transition (pathways to low-carbon economy) risks, accrued across the financial and economic system on a global level; • Net-zero and carbon offsetting strategy is therefore the key primary focus, essentially in close alignment with global perspective of climate mitigation and adaptation, that makes sense of smart business and financial choices along the transitional pathways, especially by harnessing ambitious but realistic climate action across potential scenarios, substantive to the global net-zero ambition (refer to Section Climate Resilience in IFRS S2's Exposure Draft); • Smart, competitive and forward-looking decision, after all, comes together only once relevant shareholders, stakeholders and partners are all committed to outstanding cause and causality of climate-related opportunities and risks, in greater ecosystem-governance reform narrative substantive to the global society and economy in mutual transformation while leaving no one behind.

1. Bangkok, Thailand / Page 1 (2) Edition: April 5, 2022
Establishing One Global ESG Standard
Governance of a Globally Representative Standard toward Net-Zero
Achievement at today's Sustainability Crossroads
Siripong Treetasanatavorn
Sloan Fellow, Massachusetts Institute of Technology
Leadership Narrative:
• International Sustainability Standards Board (ISSB) has been established
in recognition of the international community at UK COP26 in order to inform
climate-related risks and opportunities, notably in guidance of forward-looking
market and policy decision at today's sustainability and net-zero crossroads¹;
• Leadership highground of the proposal inherently focuses on prospect of
long-term sustainability outlook, substantiated by forward-looking choices at
the ongoing transition on the shared premise of governance processes with
corresponding reform strategy, risk management and impact measurement²;
• Climate change and consequential impact to the economy and the society
are viewed in this sense as a common challenge to the global sustainable
future, especially in the sense of physical (climate-change impact to relevant
assets across value chains) and transition (pathways to low-carbon economy)
risks, accrued across the financial and economic system on a global level³;
• Net-zero and carbon offsetting strategy is therefore the key primary focus,
essentially in close alignment with global perspective of climate mitigation and
adaptation, that makes sense of smart business and financial choices along
the transitional pathways, especially by harnessing ambitious but realistic
climate action across potential scenarios, substantive to the global net-zero
ambition (refer to Section Climate Resilience in IFRS S2's Exposure Draft⁴);
• Smart, competitive and forward-looking decision, after all, comes together
only once relevant shareholders, stakeholders and partners are all committed
to outstanding cause and causality of climate-related opportunities and risks,
in greater ecosystem-governance reform narrative substantive to the global
society and economy in mutual transformation while leaving no one behind⁵.
References (in appearance order):
1. See foundational premise of the ISSB in greater context of COP26 (2021) at:
https://www.gov.uk/government/news/uk-welcomes-work-to-develop-global-
sustainability-reporting-standards-alongside-36-international-partners
2. See also climate-related financial disclosures recommended by Financial Stability
Board (2015): https://www.fsb.org/2015/12/fsb-to-establish-task-force-on-climate-
related-financial-disclosures
3. See ISSB's Exposure Draft as of March 2022 at: https://www.ifrs.org/news-and-
events/news/2022/03/issb-delivers-proposals-that-create-comprehensive-global-
baseline-of-sustainability-disclosures; or alternatively at:
https://www.accountancyage.com/2022/03/31/issb-publishes-draft-proposals-for-
global-sustainability-disclosures

2. S. Treetasanatavorn. Establishing One Global ESG Standard
Edition: April 5, 2022 Bangkok, Thailand / Page 2 (2)
4. See article 15 in Section Climate Resilience (pp. 37-39) of the Exposure Draft in IFRS
S2 Climate-related Disclosures from the source given in reference 3.
5. See recommendation of the G30 (2020) on mainstreaming transition of the net-zero
economy at https://group30.org/publications/detail/4791