Sustainability Disclosure Standards [Download]

The recently formed International Sustainability Standards Board (ISSB) is aiming to simplify the global sustainability disclosure landscape, reducing the complexity of having multiple sources of reporting guidance.

It’s now issued its first two IFRS Sustainability Disclosure Standards. IFRS S1 and IFRS S2 are effective for annual reporting periods beginning on or after 1 January 2024, meaning that investors can begin to see information in 2025 based on companies applying the Standards for their 2024 reporting cycle.

IFRS S1 requires a company to disclose information about its sustainability-related risks and opportunities including specific information about its governance, strategy and risk management, as well as metrics and targets.

IFRS S2 requires a company to disclose information about its governance, strategy and risk management, as well as metrics and targets, in relation to its climate‑related risks and opportunities. Climate-related risks refers to the potential negative effects of climate change on a company. Climate‑related risks are associated with both physical risks (such as those resulting from increased severity of extreme weather) and transition risks (such as those associated with policy action and changes in technology). Climate-related opportunities refers to the potential positive effects arising from climate change for a company. Efforts to mitigate and adapt to climate change can produce opportunities for companies, such as opportunities to develop new products or capture new business.

Download the Standards and contact us to learn more about how the standards might apply to your entity https://www.ifrs.org/content/dam/ifrs/project/general-sustainability-related-disclosures/project-summary.pdf