The International Sustainability Standards Board (ISSB) unanimously confirmed that companies will be required to use climate-related scenario analysis to inform resilience analysis.
At the supplementary board meeting held on 1 November 2022, the ISSB voted to confirm that companies are required to use climate-related scenario analysis to report on climate resilience and to identify climate-related risks and opportunities to support their disclosures.
The ISSB also agreed to provide application support to preparers including making use of materials developed by the Task Force for Climate-Related Financial Disclosures (TCFD) to provide guidance to preparers on how to undertake scenario analysis. This decision responds to questions from stakeholders about what is meant by the term 'climate-related scenario analysis'.
The above will be developed in the final IFRS Sustainability Disclosure Standard S2—Climate-related Disclosures including through guidance issued with the Standard. This decision builds on other decisions the ISSB made related to climate-related disclosure at its October meeting.
A further supplementary board meeting will be held on 3 November at which the board will discuss the proposals in S1 General Requirements for Sustainability-related Disclosures about relevant materials to be considered in developing sustainability-related financial disclosures in the absence of a specifically applicable IFRS Sustainability Disclosure Standard.