The International Sustainability Standards Board (ISSB) has published its IFRS S1 and S2 standards in what ACCA has called ‘an important and significant step forward’ for the corporate reporting of sustainability-related information.
‘The focus the standards provide will help drive the positive changes we need in the way businesses operate in the face of the threat from climate change,’ says ACCA chief executive Helen Brand.
SMEs may also be required to provide sustainability reporting as part of value chain reporting
The first corporate reports aligned with the new standards will be those for 2024 published in 2025, with the picture varying by jurisdiction. In some jurisdictions, large and listed companies and public interest entities will be required to publish sustainability reports as early as 2025. SMEs may also be required to provide sustainability reporting as part of value chain reporting.
IFRS S2 incorporates the recommendations and guidance of the Task Force on Climate-Related Financial Disclosures (TCFD), including the structure of governance, strategy, risk management metrics and targets. Companies that are already reporting by TCFD are well on their way to complying with the S1 and S2 standards.
Read ACCA’s response to the standards and its insights.
Read also AB’s earlier coverage ‘Time to prepare for S1 and S2’ and ‘IFRS S2 about to drop’ (written when the standards were being drafted but still relevant, as the final standards have not diverged from the drafts).
See ACCA’s sustainability hub for further guidance, including a series of videos by ACCA in collaboration with ISSB.