ISSB Issues Sustainability Disclosure Standards
June 26, 2023
The International Sustainability Standards Board (ISSB) has issued its inaugural
disclosure standards: IFRS S1, General Requirements for Disclosure of
Sustainability-related Financial Information, and IFRS S2,
Climate-related Disclosures. The ISSB’s objective in releasing the two
standards is to “require an entity to disclose information about its climate-related
risks and opportunities that is useful to users of general purpose financial reports
in making decisions relating to providing resources to the entity.”
Entities are required to apply IFRS S1 and IFRS S2 for annual reporting periods beginning
on or after January 1, 2024. Earlier application is permitted. Entities that choose to
early adopt the standards are required to disclose that fact and apply both standards at
the same time.
For more information, see the press release on the IFRS Foundation’s Web site.