This week marks the issuance of the inaugural IFRS Sustainability Disclosure Standards, designed to provide a global baseline of sustainability-related disclosures for the capital markets.
Better information leads to better economic decisions. IFRS S1 requires companies to communicate the sustainability-risks and opportunities they face over the short, medium, and long term. The requirements are designed to ensure that companies provide investors information relevant to decision-making. IFRS S2 sets out specific climate-related disclosures and is designed to be used with IFRS S1. Both Standards are based on recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Issuing these Standards is just the starting point. The ISSB is consulting on future priorities to help determine what comes next. We welcome your feedback before the consultation closes on 1 September 2023.
Here are 10 things you need to know about the ISSB’s new standards:
Together, these inaugural standards and the ISSB’s capacity building programme will help build trust, confidence and much-needed global comparability to the sustainability disclosure landscape.