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This ISSB Update highlights preliminary decisions of the International Sustainability Standards Board (ISSB). Projects affected by these decisions can be found on the work plan. The ISSB's final decisions on IFRS® Sustainability Disclosure Standards are formally balloted as set out in the IFRS Foundation's Due Process Handbook.

The ISSB met on 1–3 November 2022.

Research and standard-setting

General Sustainability-related Disclosures (Agenda Paper 3)

The ISSB met on 3 November 2022 to discuss the sources of guidance an entity would use to identify sustainability-related risks and opportunities and to prepare the related disclosures. The sources of guidance are described in paragraphs 50–54 of the Exposure Draft IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (draft S1).

The ISSB tentatively decided to confirm, with modifications, the general approach in paragraphs 50–54 of draft S1 that would permit an entity to use guidance from materials other than IFRS Sustainability Disclosure Standards to identify sustainability-related risks and opportunities and to prepare related disclosures. In particular, the ISSB tentatively decided:

  1. to confirm the requirements proposed in paragraph 53 for identifying information to disclose in the absence of an IFRS Sustainability Disclosure Standard that applies specifically to a sustainability-related risk or opportunity.
  2. to confirm the requirement to consider the SASB Standards as proposed in paragraphs 51(a) and 54.
  3. to amend paragraphs 51(b) and 54 to state that preparers are permitted, but not required, to consider the CDSB Framework in identifying both sustainability-related risks and opportunities and in preparing disclosures about those risks and opportunities.


All 13 ISSB members agreed with these decisions.

Next step

The ISSB will discuss further analysis and recommendations on the fundamental concepts and terms in draft S1. The discussion will also focus on sources of guidance that refer to open-ended investor focused materials and on the potential reference to the Global Reporting Initiative Standards and European Sustainability Reporting Standards.

Climate-related Disclosures (Agenda Paper 4)

The ISSB met on 1 November 2022 to continue redeliberating the proposals in its Exposure Draft IFRS S2 Climate-related Disclosures (draft S2).

The ISSB considered feedback from respondents on the proposed requirements for an entity to disclose its resilience to climate-related changes, developments and uncertainties.

The ISSB tentatively decided:

  1. to require an entity to assess its climate resilience using a method of climate-related scenario analysis commensurate with the entity’s circumstances. The ISSB will do further work to clarify the criteria for an entity to select a method of analysis.
  2. to remove references to ‘alternative methods’ of assessing resilience from paragraph 15.
  3. to develop application guidance for paragraph 15 based on guidance from the Task Force on Climate-Related Financial Disclosures.
  4. to amend the definition of ‘climate resilience’ in Appendix A to draft S2 to clarify that, in relation to uncertainties associated with climate change, an entity’s climate resilience includes its strategic and operational resilience.
  5. to clarify that an entity would be required to disclose annually the information on climate resilience described in paragraph 15—even if the entity does not use scenario analysis annually.
  6. to amend the terminology in paragraph 15 to clarify that ‘analysis’ describes the tool (scenario analysis) that an entity is required to use in order to assess its climate resilience; and also to clarify that ‘assessment’ in that paragraph describes the entity’s objective when it uses scenario analysis to assess its climate resilience.
  7. to explore developing guidance based on third-party materials to help an entity choose relevant scenarios for assessing and preparing disclosures on climate resilience.

All 13 ISSB members agreed with these decisions.

Next step

The ISSB will continue to redeliberate the proposals in draft S2.