ISSB’s IFRS S1/2: Laying the foundation for global mandatory disclosures

THE NEW DISCLOSURE LANDSCAPE ISSB’s IFRS S1/2: Laying the foundation for global mandatory disclosures PART ONE: INTRODUCTION TO ISSB, IFRS S1/S2, AND THE CONSOLIDATION THAT mADE IT HAPPEN 5 Setting the stage: IFRS and ISSB Accounting standards and standard-setters 101 After two years of drafting and consultations, the ISSB issued its inaugural standards – IFRS S1 Two of the major accounting standa. [...] The SASB standards will continue to evolve, and ISSB (Sustainability Accounting encourages preparers and investors to continue to use them.4 The IFRS General Requirements instruct that reporters Standards Board) refer to and consider the applicability of the disclosure topics listed in the SASB standards. [...] The Financial Stability Board said that the publication of the new ISSB standards “can be seen as a culmination of the work of the TCFD.”7 • For further reading, the IFRS has published “Making the transition from TCFD to ISSB”.8 THE NEW DISCLOSURE LANDSCAPE ISSB’s IFRS S1/2: Laying the foundation for global mandatory disclosures PART ONE: INTRODUCTION TO ISSB, IFRS S1/S2, AND THE CONSOLIDATION THA. [...] and sustainability disclosures By contrast, the CSRD requires a double materiality The formation of the ISSB and the introduction assessment, which calls for organizations to consider of IFRS S1/S2 has expedited the convergence their sustainability risk and opportunities as well as the between financial and sustainability disclosures impacts they have on people and the planet (an outward-looking p. [...] THE NEW DISCLOSURE LANDSCAPE ISSB’s IFRS S1/2: Laying the foundation for global mandatory disclosures PART THREE: WHAT ACTIONS SHOULD CORPORATES TAKE? WHAT ARE THE BENEFITS OF ALIGNmENT? 21 What’s next for ISSB? The ISSB will continue to support the implementation of IFRS S1/S2 and set new sustainability standards with additional ISSB standards for biodiversity and water at the top of the list.