International Sustainability Standards Board (ISSB) part of IFRS

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Frameworks and Standards
June 1, 2023

The International Sustainability Standards Board (ISSB) provides globally recognized sustainability disclosure standards that enable organizations to communicate ESG performance in a consistent, comparable manner. ISSB implementation ensures alignment with international best practices and meets growing investor and regulatory demands for standardized sustainability reporting:

  • IFRS S1 General Requirements: Implement foundational sustainability disclosure requirements that establish comprehensive reporting principles, materiality assessments, and governance structures. IFRS S1 provides the overarching framework for identifying sustainability-related risks and opportunities that could reasonably affect an organization's cash flows, access to finance, and cost of capital over time.
  • IFRS S2 Climate-Related Disclosures: Address specific climate disclosure requirements including governance, strategy, risk management, and metrics aligned with TCFD recommendations. Report on climate transition plans, scenario analysis, greenhouse gas emissions across all scopes, and climate-related financial impacts to provide investors with decision-useful climate information.
  • Industry-Specific Requirements: Apply SASB industry standards integrated within ISSB frameworks to address sector-specific sustainability topics and metrics. These requirements ensure reporting covers material ESG issues most relevant to specific industries while maintaining consistency with global disclosure principles and investor expectations.
  • Connected Information and Integration: Link sustainability disclosures with financial reporting to provide comprehensive view of value creation processes and business model resilience. Demonstrate clear connections between ESG performance, business strategy, and financial outcomes through integrated reporting approaches that satisfy both sustainability and financial reporting requirements.
  • Global Regulatory Alignment: Ensure compliance with emerging regulatory requirements across multiple jurisdictions including EU Corporate Sustainability Reporting Directive (CSRD), SEC climate rules, and other regional sustainability disclosure mandates. ISSB alignment provides foundation for meeting diverse regulatory requirements while avoiding duplicative reporting burdens.

ISSB framework implementation positions organizations to meet evolving global sustainability reporting expectations while providing stakeholders with reliable, comparable ESG information for informed decision-making.

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