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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 28 October 2025.

Contents

Research and standard-setting

Maintenance and consistent application

Research and standard-setting

Biodiversity, Ecosystems and Ecosystem Services (Agenda Paper 3)

The ISSB met on 28 October 2025 to discuss the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations, metrics and additional guidance (collectively, the TNFD framework). 

Specifically, the ISSB discussed whether it could draw on the TNFD framework to develop materials or requirements that complement requirements in IFRS Sustainability Disclosure Standards, with the aim of meeting the common information needs related to nature-related risks and opportunities of primary users of general purpose financial reports.

The ISSB was not asked to make any decisions.

Next step

The ISSB will continue its discussions and consider the next steps for this project.

Human Capital (Agenda Paper 4)

The ISSB met on 28 October 2025 to discuss:

  • a structured approach to analysing, synthesising, organising and prioritising findings from the initial phase of research; and
  • ways of applying that approach to the research project.

The ISSB was not asked to make any decisions.

Next step

The ISSB will discuss the necessity and feasibility of standard-setting based on the evidence gathered in the initial phase of the project.

Maintenance and consistent application

Amendments to Greenhouse Gas Emissions Disclosures (Agenda Paper 9)

The ISSB met on 28 October 2025 to discuss proposed amendments to align the SASB Standards with the prospective Amendments to Greenhouse Gas Emissions Disclosures, which will amend IFRS S2 Climate-related Disclosures (prospective amendments to IFRS S2).  

The ISSB tentatively decided to amend the financed emissions metrics in the Asset Management & Custody Activities, Commercial Banking and Insurance SASB Standards by: 

  1. adding a cross-reference to the IFRS S2 definition of ‘financed emissions’ and clarifying that an entity applying those SASB Standards is permitted to exclude greenhouse gas (GHG) emissions attributable to derivatives when disclosing financed emissions information; and
  2. amending those metrics so that an entity that has excluded GHG emissions attributable to derivatives would explain what it treated as a derivative for the purpose of applying the relief to enable an understanding of how it applied the relief, such as by describing whether the items meet the definition of a derivative in accordance with the generally accepted accounting principles or practices applied in the related financial statements.

All 10 ISSB members present agreed with this decision. Two members were absent.

The ISSB also tentatively decided to update the cross-references to paragraphs B62–B63 of IFRS S2 in the Commercial Banking and Insurance SASB Standards to reflect the prospective amendments to IFRS S2. 

All 10 ISSB members present agreed with this decision. Two members were absent.

The ISSB also tentatively decided to set an effective date for the consequential amendments for annual reporting periods beginning on or after 1 January 2027, with early application permitted.

All 10 ISSB members present agreed with this decision. Two members were absent.

Next steps

The ISSB will ballot the consequential amendments to the SASB Standards concurrently with the prospective amendments to IFRS S2.

The ISSB plans to issue the consequential amendments to the SASB Standards and the prospective amendments to IFRS S2 in December 2025.