February 2023 ISSB meeting notes posted

  • ISSB meeting Image

21 Feb, 2023

The ISSB met in Montreal on 16 February 2023. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The following topics were discussed:

Sources of guidance to identify sustainability-related risks and opportunities and disclosures

The ISSB decided to amend the references to ‘other standard-setting bodies whose requirements are designed to meet the needs of users of general purpose financial reporting’ and ‘entities that operate in the same industries or geographies’ to state that preparers may consider such sources, both in the identification of sustainability-related risks and opportunities and in the identification of disclosures about those risks and opportunities, but that such consideration is not a requirement. The ISSB also decided to amend the sources of guidance to explicitly state that preparers may consider the GRI Standards and ESRS to identify disclosures about sustainability-related risks and opportunities that meet the objectives of [draft] S1. However, this reference will be made in an appendix to IFRS S1.

Effective date

The ISSB decided to require that both IFRS S1 and IFRS S2 are effective for annual reporting periods beginning on or after 1 January 2024. The ISSB also confirmed that early application of IFRS S1 and IFRS S2 is permitted, but only if an entity applies both IFRS S1 and IFRS S2 at the same time. An entity will be required to disclose that it applies IFRS S1 and IFRS S2 early. ISSB members also voted in favour of the staff recommendation related to the applicable timing of the transitional relief from the requirement for an entity to report their sustainability-related financial disclosures at the same time as their financial statements; from the requirement for an entity to measure Scope 1, Scope 2, and Scope 3 emission in accordance with the GHG Protocol Corporate Standard, when they are doing so for the first time by applying IFRS S2; and from the requirement for an entity to disclosure its Scope 3 GHG emissions.

Due process and permission to ballot

The staff summarised the due process steps undertaken throughout the General Sustainability-related Disclosures and the Climate-related Disclosures projects and the ISSB confirmed that it is satisfied that the mandatory due process steps have been met in finalising redeliberations of [draft] S1 and [draft] S2. The ISSB also granted permission for the staff to begin the balloting process for IFRS S1 and IFRS S2 and none of the ISSB members indicated that they intend to dissent from the publication of IFRS S1 or IFRS S2.

Please click to access the detailed notes taken by Deloitte observers for the entire meeting.

Correction list for hyphenation

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