Climate-related Disclosures – International Sustainability Standards Board

Date recorded:

At its meeting on February 16, 2023, the ISSB met to redeliberate its Exposure Drafts IFRS S1, General Sustainability-related Disclosures, and IFRS S2 Climate-related Disclosures and to decide whether to begin the balloting process for IFRS S1 and IFRS S2. The ISSB discussed: (i) the sources of guidance an entity would use to identify sustainability-related risks and opportunities, and related disclosures; (ii) the effective date of IFRS S1 and IFRS S2 and the duration of previously agreed transitional reliefs; and (iii) the due process steps and whether to begin the balloting process for IFRS S1 and IFRS S2. Following a discussion, the ISSB made tentative decisions on each of these topics including (i) to amend the requirement in IFRS 1 to permit, but not require, preparers to consider ‘the most recent pronouncements of other standard-setting bodies whose requirements are designed to meet the needs of users of general purpose financial reporting’ in identifying sustainability-related risks and opportunities and in identifying disclosures about those risks and opportunities; (ii) to require that both IFRS S1 and IFRS S2 be effective for annual reporting periods beginning on or after January 1, 2024; to confirm early application of IFRS S1 and IFRS S2 is permitted; to permit early application, but only if an entity applies both IFRS S1 and IFRS S2 at the same time; and to confirm that if an entity applies IFRS S1 and IFRS S2 early, it is required to disclose that fact. The ISSB also tentatively decided to permit an entity applying short-term transitional relief to report its sustainability-related financial disclosure; and (iii) all of the ISSB members confirmed they were satisfied that the ISSB has complied with applicable due process requirements and has completed sufficient consultation and analysis to begin the balloting process for IFRS S1 and IFRS S2. The ISSB also decided that IFRS S1 and IFRS S2 will not be re-exposed. No ISSB members indicated an intention to dissent from issuing IFRS S1 and IFRS S2.

Review the ISSB Update and podcast on the Board's Web site.

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