What is this regulation about?
The IFRS Foundation established the ISSB to address the growing demand for sustainability-related information, which is crucial for economic and investment decisions.
Building on market-led initiatives like CDSB, TCFD, the Integrated Reporting Framework, and SASB, the ISSB issued its first IFRS Sustainability Disclosure Standards—IFRS S1 (General Requirements) and IFRS S2 (Climate-related Disclosures) in June 2023. IFRS uses SASB standards as a key input in developing its global sustainability disclosure standards. The Task Force on Climate-related Financial Disclosures (TCFD) recommendations serve as the foundation for the climate-related disclosures within IFRS S2. IFRS S2 effectively incorporates the TCFD’s recommendations, ensuring that companies reporting under IFRS S1 and S2 will also meet the requirements of the TCFD framework. This integration aims to streamline the sustainability reporting landscape and provide investors with consistent and comparable climate-related information.
The IFRS Sustainability Disclosure Standards S1 and S2, set a global baseline for consistent, comparable, and reliable sustainability-related financial disclosures. IFRS S1 focuses on general sustainability-related risks and opportunities, while IFRS S2 addresses climate-related disclosures.
How does this impact my business?
Together, IFRS S1 and IFRS S2 help organizations communicate how sustainability matters impact enterprise value—bringing sustainability reporting in line with financial reporting standards. As the global shift towards sustainable business intensifies, these standards provide clarity and structure for companies navigating ESG disclosures.
What can I do to get started?
Whether you’re preparing your first sustainability report or aligning existing disclosures with ISSB standards, Sphera can help you simplify compliance, enhance transparency, and unlock strategic insights for investors and stakeholders.
