ISSB Update September 2025

Research and standard-setting

Biodiversity, Ecosystems and Ecosystem Services (Agenda Paper 3)

The ISSB met on 24 September 2025 to discuss a summary of the common information needs of primary users of general purpose financial reports related to nature-related risks and opportunities. The ISSB also discussed the extent to which entities could meet those needs by applying:

• IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures;
• the SASB Standards (including the amendments proposed in the exposure drafts published as part of the project on Enhancing the SASB Standards); and
• the CDSB Framework Application Guidance.

The ISSB was not asked to make any decisions.

Next steps

Next month, the ISSB will discuss whether to develop educational materials as a first step to support entities in disclosing information about nature-related risks and opportunities using IFRS S1 and IFRS S2. The ISSB will also discuss whether and how to build on the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations to meet user needs for information not explicitly required by these Standards.

Enhancing the SASB Standards (Agenda Paper 6)

The ISSB met on 26 September 2025 to discuss the prospective exposure draft of proposed amendments to three of the 12 SASB Standards it has prioritised for enhancement.

The ISSB was not asked to make any decisions.

Next step

The ISSB will decide whether to ratify the exposure draft.

Maintenance and consistent application

Amendments to Greenhouse Gas Emissions Disclosures (Agenda Paper 9)

The ISSB met on 25 September 2025 to continue discussing the feedback on the Exposure Draft Amendments to Greenhouse Gas Emissions Disclosures. The Exposure Draft proposed targeted amendments to IFRS S2 Climate-related Disclosures in response to application challenges related to greenhouse gas (GHG) emissions requirements.

The ISSB discussed:

• the proposed amendments related to the measurement and disclosure of Scope 3 Category 15 GHG emissions (Category 15 GHG emissions) (Agenda Papers 9A–9B);
• the proposed amendments related to the use of the Global Industry Classification Standard (GICS) in applying requirements related to financed emissions (Agenda Paper 9C);
• the proposed amendments related to the jurisdictional relief from using the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) (GHG Protocol Corporate Standard) and the applicability of that relief to the use of global warming potential (GWP) values based on a 100-year time horizon from the latest Intergovernmental Panel on Climate Change assessment available at the reporting date (GWP values from the latest IPCC assessment) (Agenda Paper 9D);
• the proposed effective date and transition requirements for the targeted amendments (Agenda Paper 9E); and
• the due process steps to begin the process for balloting the targeted amendments (Agenda Paper 9F).

Relief from measurement and disclosure of Scope 3 Category 15 greenhouse gas emissions beyond financed emissions (Agenda Paper 9A)

The ISSB tentatively decided to finalise the proposed relief from the requirements to measure and disclose Category 15 GHG emissions beyond financed emissions (relief).

All 12 ISSB members present agreed with this decision. Two members were absent.

The ISSB also tentatively decided:

1. to clarify the intention of the relief in the amended Basis for Conclusions on IFRS S2 Climate-related Disclosures; and
2. to continue monitoring developments in measurement methodologies for Category 15 GHG emissions.

All 12 ISSB members present agreed with this decision. Two members were absent.

Disclosure requirements for use of the relief related to Scope 3 Category 15 greenhouse gas emissions (Agenda Paper 9B)

The ISSB tentatively decided to finalise the proposed requirement to disclose information about what an entity excludes from Category 15 GHG emissions when using the relief, subject to:

1. replacing the requirement to disclose the amount of derivatives and financial activities excluded from an entity’s measurement and disclosure of Category 15 GHG emissions with a requirement to describe the financial activities excluded, including activities associated with derivatives.
   Eleven of the 12 ISSB members present agreed with this decision. Two members were absent.
2. requiring that an entity 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.
   Nine of the 12 ISSB members present agreed with this decision. Two members were absent.
3. adding a requirement to disclose the total Category 15 GHG emissions and a subtotal of the financed emissions that are included within the entity’s measurement and disclosure of Category 15 GHG emissions, if the entity includes GHG emissions beyond financed emissions.
   

All 12 ISSB members present agreed with this decision. Two members were absent.

The ISSB also tentatively decided to provide guidance to explain the objective of the requirements related to the disclosure of financial activities excluded from Category 15 GHG emissions.

Eleven of the 12 ISSB members present agreed with this decision. Two members were absent.

Use of Global Industry Classification Standard (GICS) in applying specific requirements related to financed emissions (Agenda Paper 9C)

The ISSB tentatively decided to finalise the proposal to amend the requirement to use GICS to disaggregate financed emissions information by industry, subject to replacing the hierarchy of industry-classification systems set out in the Exposure Draft with a less prescriptive approach. The ISSB based this approach on an aspect of the proposal set out in paragraphs B62B(d) and B63B(d) of the Exposure Draft. This approach would require an entity that participates in commercial banking or insurance activities:

1. to select an industry-classification system that enables it to classify counterparties by industry in a manner that results in information that is useful for understanding the entity’s exposure to climate-related transition risks; and
2. to prioritise—with all else being equal—selecting a commonly used industry-classification system that would support the comparability of information between entities.

All 12 ISSB members present agreed with this decision. Two members were absent.

The ISSB tentatively decided to finalise the proposed requirement for an entity to select and use a single industry-classification system, subject to clarifying that an entity that participates in both commercial banking and insurance activities is not required to use the same industry-classification system to classify counterparties for its commercial banking and insurance activities when disaggregating financed emissions information by industry.

All 12 ISSB members present agreed with this decision. Two members were absent.

The ISSB also tentatively decided to finalise the proposed requirement to disclose information about the industry-classification system used, with minor changes to reflect the ISSB’s decision to take a less prescriptive approach. The requirement would require an entity to disclose:

1. the industry-classification system used to disaggregate the entity’s financed emissions information by industry; and
2. the reason, or reasons, for the entity’s choice of industry-classification system and how using that system enables the entity to classify counterparties by industry in a manner that results in information that is useful for understanding the entity’s exposure to climate-related transition risks.

All 12 ISSB members present agreed with this decision. Two members were absent.

Jurisdictional relief from using the GHG Protocol Corporate Standard and its applicability for GWP values (Agenda Paper 9D)

The ISSB tentatively decided to finalise the proposed amendment to clarify that the jurisdictional relief from using the GHG Protocol Corporate Standard for measuring GHG emissions (jurisdictional relief) is available if an entity is required, in whole or in part, by a jurisdictional authority or an exchange on which it is listed to use a different method for measuring its GHG emissions.

All 12 ISSB members present agreed with this decision. Two members were absent.

The ISSB tentatively decided to finalise the proposed amendment to extend the jurisdictional relief to the requirement for an entity to use GWP values from the latest IPCC assessment for converting the seven constituent greenhouse gases into CO₂ equivalent values if the entity is required, in whole or in part, by a jurisdictional authority or an exchange on which it is listed to use different GWP values.

All 12 ISSB members present agreed with this decision. Two members were absent.

Effective date and transition (Agenda Paper 9E)

The ISSB tentatively decided to require an entity to apply the amendments for annual reporting periods beginning on or after 1 January 2027, with early application permitted.

All 12 ISSB members present agreed with this decision. Two members were absent.

The ISSB also tentatively decided to require an entity to adjust comparative information in the first annual reporting period in which the entity applies the amendments, unless it is impracticable to do so. The entity would be required:

1. if it disclosed Scope 3 Category 15 GHG emissions in the preceding period, to provide a total of Category 15 GHG emissions and a subtotal of the financed emissions as if the entity had applied the new requirement in the preceding period;
2. if it disclosed disaggregated financed emissions information by industry in the preceding period, to reflect the industry-classification system applied as a result of the new requirements for the preceding period’s information; and
3. if it chooses to apply the amended jurisdictional relief from using the GHG Protocol Corporate Standard or the GWP values required by IFRS S2, to adjust the GHG emissions disclosed so they are measured as if the entity made that choice in the preceding period.

All 12 ISSB members present agreed with this decision. Two members were absent.

Due process steps (Agenda Paper 9F)

All 12 ISSB members present confirmed they were satisfied the ISSB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the targeted amendments to IFRS S2 without re-exposure. Two members were absent.

No ISSB member indicated an intention to dissent from issuing the amendments.

Next step

The ISSB plans to issue the amendments by the end of 2025.