Sustainable Reporting
ISSB publishes its first IFRS Sustainability Disclosures Standards
Sustainability Reporting
The International Sustainability Standards Board (ISSB) publishes the first IFRS Sustainability Disclosure Standards
On 26 June 2023, the ISSB published its long awaited first two IFRS Sustainability Disclosure IFRS S1: General Sustainability IRS S2: Climate-Related
Standards at the IFRS Foundation Conference 2023: Disclosures Disclosures
• IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
• IFRS S2 Climate-related Disclosures Information about significant sustainability- Information about climate-
Objective
related risks and opportunities. Disclosures related risks and opportunities.
should be useful to the primary users of Disclosures should assist users in
Both Standards are effective for annual periods beginning on or after 1 January 2024, with general purpose financial reporting in making understanding the use of resources and
substantial transitional reliefs to allow preparers more time to align reporting of sustainability decisions related to providing evaluating strategies, business model, and
resources to the entity. operational adaptation
related financial disclosures and financial statements.
abilities.
Key • Governance - Processes, controls, and • Governance - Processes, controls, and
Background procedures to monitor and manage procedures to monitor and manage
Disclosure sustainability-related risks and climate-related risks and
The ISSB was established in November 2021 to develop high-quality sustainability disclosure standards
that meet investors’ information needs with the objective to create a comprehensive global baseline of
Topics opportunities. opportunities.
• Strategy - Approach for addressing • Strategy - Approach for addressing
sustainability-related disclosures. IFRS S1 and IFRS S2 are the first IFRS Sustainability Disclosure Standards sustainability-related risks and climate-related risks and opportunities
and result from a consultation process started in March 2022. opportunities that could affect business that could affect business model and
model and strategy over the short, strategy over the short, medium, and
Jurisdictional efforts towards sustainability reporting requirements medium, and long term. long term.
The first IFRS Sustainability Disclosure Standards are published at a time of significant policy and • Risk management - Processes to identify, • Risk management - Processes to
regulatory developments. The ISSB’s standards are intended to be used to create a global baseline, which assess, and manage sustainability-related identify, assess, and manage climate-
can be supplemented (and therefore be interoperable) by jurisdictional requirements. The Standards will risks. related risks.
need to adopted by local jurisdictions. • Metrics and targets - Information used to • Metrics and targets - Cross-industry
assess, manage, and monitor performance metrics, industry-based metrics, and
of sustainability-related risks and other metrics used to measure
opportunities. progress toward targets.
For further details: iGAAP in Focus
Deloitte welcomes the publication of IFRS S1 and IFRS S2 as an important milestone in achieving a
Damian Regan Magali Abdessater global baseline of consistent, high quality, and comparable sustainability information addressing
Middle East Sustainability Reporting & Middle East IFRS Sustainability the needs of capital markets. Adoption of the standards worldwide is needed to help achieve true
Assurance Leader Disclosures Champion
harmonization and avoid the risk of a fragmented approach to regulation.
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