This trailblazer shows how sustainability reporting should shape corporate strategy

Chief sustainability officers – executives overseeing the company’s sustainability reporting – face a complex and fast-changing regulatory landscape. Increasing demands on standards means that corporate strategies must demonstrate greater transparency, accountability and integrated sustainability aims.

Companies are under pressure not only to measure, report and achieve their sustainability goals but also to navigate new jurisdictional reporting mandates, evolving voluntary regulations and increasing expectations of investors.

As sustainability reporting becomes a business priority, the chief sustainability officer must ensure they are aligning with the International Financial Reporting Standards Foundation – a non-profit, public interest organization established to develop high-quality, understandable, enforceable and globally accepted accounting and sustainability disclosure standards.

These standards are set and approved by the International Sustainability Standards Board (ISSB) and are proving instrumental in enabling business leaders to make more data-driven decisions.

By embedding sustainability into financial reporting, organizations can ensure compliance while driving long-term environmental, social and economic value creation.

Emirates NBD has positioned itself as a trailblazer in sustainability reporting, becoming the first bank in the Middle East and North Africa (MENA) to publish an ISSB-aligned sustainability report with assured financed emissions (i.e. the carbon footprint of their investments and loans).

This milestone sets a new benchmark for financial institutions, offering valuable insights from the perspective of an early pioneer. With 35 jurisdictions already adopting or considering ISSB standards, the Emirates NBD case study offers timely lessons on how businesses can proactively integrate sustainability into their corporate strategies.

The publication of the report is hoped to build customer trust and enhance confidence in the group’s sustainability practices while strengthening the bank’s reputation and brand image among investors and the community.

The ISSB sets a global baseline for sustainability disclosures, drawing from established frameworks like the Task Force on Climate-related Financial Disclosures, the Value Reporting Foundation and the World Economic Forum’s Stakeholder Metrics Initiative.

At the same time, it ensures interoperability with new regulations and reporting requirements, such as the European Union’s Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards.

Key facets include:

By proactively addressing these focus areas, companies can meet compliance requirements while strengthening investor confidence and stakeholder trust.

A strong ISSB-aligned report does more than meet requirements – it weaves sustainability into risk management and overall business strategy. Emirates NBD emphasized the following key steps:

For example, Emirates NBD issues a single, consolidated report for investors, regulators and customers to clearly communicate sustainability commitments and progress against targets. It also implements assured reporting, including the assurance of statements like financed emissions, reducing the likelihood of greenwashing.

By considering ISSB reporting as a strategic growth lever rather than a regulatory burden, businesses can leverage it for competitive advantage.

Emirates NBD’s journey offers valuable insights for companies looking to integrate ISSB standards effectively.

Key takeaways include:

Leading chief sustainability officers emphasize the importance of a fully integrated approach to sustainability, with financial and non-financial data being governed jointly. Practical steps include:

The latest omnibus proposal from the EU confirmed the bloc is committed to the double materiality approach.

Additionally, its simplified CSRD approach for small- and medium-sized enterprises (SMEs) is expected to have ripple effects on large companies, as SMEs play a crucial role in value chains and their disclosures impact corporate sustainability reporting.

To navigate locally adapted ISSB standards and maintain a global approach, businesses can leverage ISSB jurisdictional guides, ensuring consistency while addressing regional needs.

Publishing an ISSB-aligned report is just the beginning. Companies must continuously refine their data management, risk assessments and sustainability to stay competitive. ISSB is not just about reporting; it is about embedding sustainability into financial decision-making to build a more resilient and sustainable business.

By learning from early adopters such as Emirates NBD and leveraging ISSB standards strategically, chief sustainability officers and business leaders can drive meaningful impact and navigate the complexities of today’s sustainability landscape with confidence.