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The International Sustainability Standards Board (ISSB) has issued two significant standards for sustainability reporting:

  1. IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and,
  2. IFRS S2 Climate-related Disclosure. These standards will become mandatory for companies following International Financial Reporting Standards (IFRS) globally. 

The guidelines are set to become the most widely used framework for ESG reporting, providing clarity and creating a benchmark for sustainability disclosures. Stay tuned as regulatory bodies like the SEC come under pressure to align with these global standards. 

About the New Standards

IFRS S1 and IFRS S2 are groundbreaking disclosure requirements developed by the ISSB. They enable companies to communicate sustainability-related risks, opportunities, and climate-related disclosures in a comprehensive and consistent manner. These standards align with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

A Global Baseline for Sustainability Disclosures

The ISSB developed these standards in response to calls from the G20, the Financial Stability Board, and the International Organization of Securities Commissions (IOSCO). They provide a global baseline for sustainability-related disclosures, meeting the demand for a consistent understanding of how sustainability factors impact companies’ prospects.

Implementation and Adoption

With the issuance of IFRS S1 and IFRS S2, the ISSB will support jurisdictions and companies in their adoption. A Transition Implementation Group will assist companies applying the standards, and capacity-building initiatives will facilitate effective implementation.

Beyond the global baseline, jurisdictions can require additional disclosures, and the ISSB will collaborate with GRI to ensure efficient and effective reporting when the ISSB Standards are combined with other reporting standards.

Emmanuel Faber, ISSB Chair, states: “The ISSB Standards have been designed to help companies tell their sustainability story in a robust, comparable, and verifiable manner. Today’s publication is just the starting point as we consult on our future priorities, beyond climate.”

At r4apps, we are ready to support your organization in meeting these standards with our expertise and innovative solutions. Get in touch today to gain certainty in your ESG data.