ISSB releases IFRS S1 and S2 guidance

On 26th June, The International Sustainability Standards Board (ISSB) has released its inaugural standards, IFRS S1 and IFRS S2, which aim to establish global sustainability reporting standards for corporations.

Emmanuel Faber, ISSB Chair, said:

Today represents the outcome of more than 18 months of intense work to deliver an inaugural set of sustainability disclosure standards for the global capital markets.

What are the standards about?

These standards provide a common framework for companies to disclose the impact of climate-related risks and opportunities on their prospects. The goal is to enhance trust and confidence in sustainability disclosures and facilitate informed investment decision-making.

IFRS S1: disclosure requirements for communication to investors about sustainability-related risks and opportunities in the short, medium and long term
IFRS S2: includes specific climate-related disclosures, designed to be used with IFRS S1

Where are the standards applicable?

Unlike the European Sustainability Reporting Standards (ESRS), which are limited to Europe, the ISSB standards are intended to be globally applicable, although participation remains voluntary.

Source: IFRS, ISSB