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The International Sustainability rules Board (ISSB) recently released disclosure rules relating to climate change and sustainability. The IFRS Foundation announced today the release of a new guide designed to assist businesses in voluntarily applying these standards and updating investors on their progress.
In order to inform investors about the sustainability risks and possibilities faced by firms, the IFRS Foundation established the International Sustainability Standards Board in November 2021. The board’s mission is to produce IFRS Sustainability Disclosure Standards. In June 2023, the IFRS published the first reporting rules for general sustainability (IFRS S1) and climate change (IFRS S2).
Many regulators around the world have announced plans to use the standards since they were released last year. The IFRS reported in May 2024 that more than 20 jurisdictions have chosen to use the ISSB standards or are in the process of incorporating the standards into their own frameworks. These jurisdictions account for more than half of the world’s greenhouse gas emissions, more than 40% of the world’s market capitalization, and nearly 55% of the world’s GDP.
The IFRS Foundation states that its most recent publication, “Voluntarily applying ISSB Standards—A guide for preparers,” attempts to give businesses a tool to meet investor demand for sustainability reporting that complies with the new emerging standards. This is especially true for jurisdictions where there are no regulatory requirements to apply ISSB Standards.