In response to the growing demand to improve global consistency and comparability of corporate sustainability disclosures, the International Financial Reporting Standards Foundation (IFRS) created the International Sustainability Standards Board (ISSB) with the aim to develop new sustainability standards that are widely accepted globally.
New sustainability disclosure standards
Executive summary
The ISSB has published its first two sustainability disclosure standards (IFRS S1 and IFRS S2) with the aim of creating a global framework to ensure that companies provide sustainability-related information alongside financial statements.
Main content
IFRS S1 aims to provide a framework of general principles to communicate in a clear and transparent manner relevant information on the significant sustainability-related risks and opportunities faced by undertakings in the short, medium and long term.
IFRS S2 provides a framework for disclosing information about a company's exposure to significant climate-related risks and opportunities, enabling key stakeholders to assess the impact on the company's financial position, results, cash flows, strategy, business model and value.
Four general pillars are defined on which information should be disclosed:
- Governance
- Strategy
- Risk management
- Metrics and objectives
Undertakings shall provide sustainability information as part of their overall financial reporting for annual periods beginning on or after 1 January 2024.
Download the technical note on New sustainability disclosure standards (document also available in Spanish).