International Sustainability Standards Board confirms effective date of new Standards

The first two Sustainability Standards will be: 

• IFRS S1 ‘General Requirements for Disclosure of Sustainability-related Financial Information’​  
• IFRS S2 ‘Climate-related Disclosures’ 

The decision to minimize the period between the release date and the effective date is based on strong demand from investors of reporting entities around the world to disclose consistent, comprehensive, and comparable sustainability-related information. Parties ranging from the International Organization of Securities Commissions (IOSCO) to leaders of the G20 have been vocal about the urgent need for sustainability standards to take effect as soon as possible. Disclosing information about sustainability-related risks and opportunities is seen by many, including the ISSB, as essential to protecting investors and supporting systemic financial stability. 

Since a full suite of IFRS Sustainability Standards is still to be issued, the ISSB also agreed to provide guidance for entities to use by referencing the European Sustainability Reporting Standards (ESRS) within an appendix to IFRS S1. This appendix is designed to help reporting entities readily identify metrics and disclosures that meet the information needs of investors.  

Between now and the June 2023 release date, the ISSB will focus on creating further guidance and training material to support and explain how IFRS S1 and IFRS S2 should be applied. They will also create programs to support reporting entities in applying the Standards appropriately and consistently as market infrastructure and capacity related to the Standards is built.

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