The IFRS Foundation has announced the release of a new guide to assist companies in their initial application of the ISSB standards for sustainability reporting, specifically focusing on climate-related disclosures.

Launched in November 2021, the IFRS Foundation’s International Sustainability Standards Board (ISSB) aims to develop IFRS Sustainability Disclosure Standards that provide investors with insights into companies’ sustainability risks and opportunities. In June 2023, the IFRS introduced its first general sustainability (IFRS S1) and climate (IFRS S2) reporting standards.

During the development of these standards, the ISSB introduced temporary “reliefs” to help companies focus on specific areas or data, due to concerns about data availability and readiness. A key relief was the “climate-first” transition relief, which allows companies to start reporting under IFRS S1 with a focus solely on climate-related information, with other sustainability topics to be covered in the following years.

The ISSB highlighted that while investors seek comprehensive sustainability-related information across all risks and opportunities, the urgency for disclosures on climate-related risks and opportunities is particularly pressing.

The new guidance covers several key topics, including the definitions and considerations for materiality in sustainability reports, factors to consider when disclosing climate-related risks and opportunities, requirements for applying metrics and targets, disclosures about the sources of guidance used to identify climate-related risks, and the judgments made in preparing these disclosures. It also addresses technical aspects such as the placement and timing of these disclosures in company reports.

“Stay ahead in sustainability compliance with Global PCCS,—where expert insights meet the latest regulations. Unlock a future where compliance fuels sustainability, helping your business thrive in a greener, well-regulated world. For more information, contact us at info@globalpccs.com.”