Overview of IFRS S1 and IFRS S2

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The ISSB was launched by the IFRS Foundation at COP26 with the aim of improving the consistency and quality of sustainability reporting across the globe, by matching the importance of sustainability reporting with the current regulations around financial reporting. To reinforce this message, the ISSB sits alongside the International Accounting Standards Board (IASB) and is overseen by the trustees of the IFRS Foundation and the Monitoring board.

We have released a new article which provides an overview of the newly released International Sustainability Standard IFRS S1 'General Requirements for Disclosure of Sustainability-related Financial Information' and IFRS S2 'Climate-related Disclosures'.

This article introduces both of the new Standards and explains the key things you need to know about IFRS Sustainability Disclosure Standards. We also provide a description of the four pillars of TCFD and give some practical next steps for preparing to report.

The ISSB’s aim is to establish a global baseline of sustainability-related financial disclosures, which creates a common language for disclosing sustainability risks and opportunities in order to achieve global comparability. The Standards become effective for annual reporting periods beginning on or after 1 January 2024. Together they mark the start of a new era of requiring reporting entities to make sustainability-related disclosures.  

How we can help

We hope you find the information in this article helpful in giving you some insight into IFRS S1 and IFRS S2 If you would like to discuss any of the points raised, please do not hesitate to contact us.