Webcasts: Proportionality mechanisms in IFRS Sustainability Disclosure Standards
When the International Sustainability Standards Board (ISSB) was developing IFRS S1
General Requirements for Disclosure of Sustainability-related Financial
Information and IFRS S2 Climate-related Disclosures, it received feedback
from stakeholders that the ISSB Standards should give more consideration to the range of
capabilities and preparedness of companies around the world.
To make the ISSB Standards a truly global baseline of sustainability-related financial
disclosures, the ISSB built in mechanisms to ensure that all companies, including
smaller companies and those in developing markets, can apply them.
These proportionality mechanisms support the application of IFRS S1 and IFRS S2—they help
companies with different levels of capability and preparedness to apply the ISSB
Standards.
In this webcast, ISSB member Ndidi Nnoli-Edozien and ISSB technical staff Martine
Beaulieu explain how the proportionality mechanisms support the application of IFRS S1
and IFRS S2. They cover what the proportionality mechanisms are and where they appear in
IFRS S1 and IFRS S2.
Ndidi and Martine also provide examples of how companies should use the proportionality
mechanisms to apply specific requirements in ISSB Standards.
The webcast is accompanied by a factsheet that provides an overview of the proportionality
mechanisms and what is covered in the webcast.
Access the Standards to find out more about the requirements on
proportionality mechanisms.
Part One—Introduction to proportionality mechanisms in the ISSB Standards
This part of the webcast explains why the ISSB chose to include
proportionality mechanisms in the ISSB Standards.
Access the webcast here.
Part Two—'All reasonable and supportable information that is available to the company at the reporting date without undue cost or effort'
This part of the webcast explains the proportionality mechanism related to ‘all
reasonable and supportable information that is available at the reporting date
without undue cost or effort’ and covers examples of how the mechanism can be used
to apply specific requirements in the ISSB Standards.
Access the webcast here.
Part Three—'Commensurate with skills, capabilities and resources that are available to the company'
The final part of this webcast explains the proportionality mechanism related to
'commensurate with the skills, capabilities and resources that are available
to the company' and covers examples of how the mechanism can be used to apply
specific requirements in the ISSB Standards.
Access the webcast here.