News Brief
The International Sustainability Standards Board (ISSB), a standard-setting board of the IFRS Foundation, has recently released its inaugural set of sustainability-related disclosure standards. These standards aim to establish a global baseline of sustainability-related disclosures for the capital markets.
The standards include IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures).
IFRS S1 requires companies to communicate the sustainability-risks and opportunities they face over the short, medium, and long term.
IFRS S2 sets out specific climate-related disclosures and is designed to be used with IFRS S1.
Highlights of the ISSB Standards:
- Investor-relevant information: The standards are designed to ensure that companies provide material, proportionate, and decision-useful information to investors for effective decision-making.
- Integration with financial statements: The ISSB Standards are designed to ensure that companies provide sustainability-related information alongside financial statements. The Standards have been developed to be used in conjunction with any accounting requirements.
- Compatibility with jurisdictional requirements: The Standards allows for compatibility with additional jurisdiction-specific reporting requirements.
- Consolidates established frameworks and standards: The Standards build on and consolidate the TCFD recommendations, SASB Standards, CDSB Framework, Integrated Reporting Framework and World Economic Forum metrics.
- Interoperability with GRI standards: The ISSB’s has partnered with the Global Reporting Initiative (GRI) to build its requirements to be interoperable with GRI standards,
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