The International Sustainability Standards Board (ISSB) revealed its inaugural two sustainability disclosure standards on June 26, 2023: International Financial Reporting Standards (IFRS S1 and IFRS S2). The standards, available at no cost but requiring account creation for download, signify an important step in establishing a global baseline for sustainability-related financial information disclosure.
IFRS S1, officially titled ‘General Requirement for Disclosure of Sustainability-related Financial Information’, and IFRS S2, termed ‘Climate-related Disclosures’, are integral components of a worldwide sustainability information disclosure drive. They have a prominent role in enriching the landscape of International Financial Reporting delivering more comprehensive, accurate and comparable sustainability information to investors.
Both disclosure standards were developed with the aim to enhance accountability, improve sustainability outcomes, and promote transparency in global finance. The standards are expected to be incorporated by global corporate entities and law firms alike, enhancing the robustness of their sustainability-related financial declarations and enriching the quality of information available to stakeholders.
These standards signify the commitment of the ISSB to set a global benchmark for reporting sustainability-related financial data. Keeping this in view, all corporations are advised to align their practices with the latest standards, crucial for maintaining competitiveness in the evolving financial landscape. The complete ISSB disclosure standards can be accessed directly through the ISSB official announcement.