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Learn more about the International Sustainability Standards Board.
About
The International Sustainability Standards Board (ISSB) develops and promotes globally consistent sustainability reporting standards. Its focus is on providing investors and other stakeholders with high-quality information about companies' sustainability-related risks and opportunities. ISSB standards aim to enhance global consistency and comparability in sustainability reporting.
The ISSB, established under the IFRS Foundation, aims to create high-quality, comprehensive global baseline sustainability disclosure standards focused on investors' and financial markets' needs. The Board's formation responded to a global demand for comparable, decision-useful information and an efficient reporting landscape, thus addressing the fragmentation in sustainability-related standards.
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Scope
The ISSB focuses on developing standards that provide essential sustainability-related financial information to global capital markets. Its standards are informed by existing frameworks, including the Climate Disclosure Standards Board (CDSB), the Task Force for Climate-related Financial Disclosures (TCFD), and the Sustainability Accounting Standards Board (SASB). The ISSB's scope is to meet investors' information needs while enabling comprehensive sustainability reporting by companies.
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Methodology
The ISSB’s methodology encompasses a rigorous, transparent due process for developing standards, ensuring they are market-informed and decision-useful. The ISSB published its first two standards, IFRS S1 and IFRS S2, in 2023. IFRS S1 covers general sustainability-related financial disclosures, while IFRS S2 focuses specifically on climate-related disclosures. Both standards integrate the recommendations of the TCFD and require industry-specific disclosures.
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Impact
The ISSB's standards aim to improve the quality and comparability of sustainability information available to investors, enhancing investment decision-making and economic outcomes. By providing a global baseline, the ISSB standards help harmonize various sustainability reporting frameworks, thus reducing reporting burdens and increasing efficiency for companies.
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Key Requirements
Key elements of the ISSB's IFRS S1 include disclosures of material sustainability-related risks and opportunities and alignment with the TCFD framework for governance, strategy, risk management, and metrics. IFRS S2 requires disclosures about climate-related risks and opportunities, incorporating TCFD recommendations and industry-specific guidance. These standards are designed to be assurable, decision-useful, and connected to financial statements.
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