The ISSB (International Sustainability Standards Board) has today released its eagerly anticipated standards S1 and S2. Together they aim to create a common lexicon for disclosures made by companies to the capital markets about the effect that climate-related risks and opportunities have on the company’s prospects.
Exposures drafts of both standards were circulated previously for comment. They are now live and intended for use for financial years commencing after 1 January 2024 (or earlier if both used together).
Wide adoption of the new standards could start to reduce the challenging proliferation of sustainability reporting frameworks. They have been developed for use with any accounting requirements, irrespective of the jurisdiction involved, adopting the same concepts underpining the widely used IFRS Accounting Standards.
The ISSB is an independent standards setting board set up by the International Financial Reporting Standards Foundation after COP26 in Glasgow. It aims to develop a global baseline for sustainability disclosures that are high quality, comprehensive and focussed on the needs of investors and can be used in decision-making.
The ISSB has the backing of the G7 and G20, the International Organization of Securities Commissions (IOSCO), the Financial Stability Board, African Finance Ministers and Finance Ministers and Central Bank Governors from more than 40 jurisdictions.
For more information see the IFRS website here: IFRS