ISSB Inaugural Standards aim to provide businesses and investors with clarity on corporate sustainability disclosure and create better alignment between sustainability and finance departments. Under the IFRS Foundation, the ISSB is creating one global baseline of high-quality sustainability disclosure standards to better meet investors’ needs.
The Standards use terminology suitable for profit-oriented entities, including public-sector business entities globally.
ISSB (SASB) Standards and Compliance Timeline
Standards can be adopted by jurisdictions of individual nations, making them binding for companies in those areas. IFRS S2 Climate-related Disclosure standard will be integrated into CDP’s environmental reporting platform in 2024.
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information sets out the general requirements for a company to disclose information about its sustainability‐related risks and opportunities that is useful to users of general purpose financial reports (referred to as ‘investors’ throughout this document) in making decisions relating to providing resources to the company.
IFRS S2 Climate-related Disclosures sets out the requirements for a company to disclose information about its climate‐related risks and opportunities, while building on the requirements described in IFRS S1. IFRS S2 integrates the recommendations of the Task Force on Climate‐related Financial Disclosures (TCFD) and requires the disclosure of information about both cross‐industry and industry‐specific climate‐related risks and opportunities.
Standards will be effective by January 1, 2024 (first reports in 2025). It is recommended that companies first report based on the climate-related disclosures.
IFRS (ISSB) has taken over responsibility of the TCFD in 2024. The ISSB builds upon standards like SASB and TCFD, but once implemented, SASB reporting will become obsolete.
Who would TCFD apply to?
TCFD is voluntary, but will heavily influence mandatory sustainability reporting requirements. For example, in Turkey, the POA (Public Oversight Authority) has announced that it will adopt these standards and that they will be mandatory for publicly traded companies of a certain size in 2025, when performance for 2024 will be reported.
To whom and how to report:
Stakeholders / Varies by country
PS: In Turkey, the POA (Public Oversight Authority) has announced that it will adopt these standards and that they will be mandatory for publicly traded companies of a certain size in 2025, when performance for 2024 will be reported.
