Climate-related disclosures
Background
In November 2021, the IFRS Foundation announced the creation of its new International Sustainability Standards Board (ISSB) tasked with developing a comprehensive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs.
In order to facilitate a running start of the ISSB, a Technical Readiness Working Group (TRWG) had been created in March 2021. Concomitantly with the announcement of the formation of the ISSB, the TRWG published a Climate-related disclosures prototype.
In an additional meeting in March 2022, the Due Process Oversight Committee (DPOC) confirmed that it does not object to the ISSB Chair and Vice-Chair publishing the exposure draft Climate-Related Disclosures that builds on the TRWG prototype before the ISSB is quorate.
The climate-related disclosures prototype was structured around the four TCFD pillars of governance, strategy, risk management, and metrics and targets.
The main proposals in ED/2022/S2 Climate-related Disclosures generally reflect the proposals in the prototype. Some changes were made to improve specificity and clarity with some added disclosure requirements. A noticeable change regards the internationalisation of metrics that referred to specific jurisdictions.
Current status of the project
This project has been completed. The ISSB issued IFRS S2 Climate-related Disclosures on 26 June 2023.
Project milestones
| Date | Development | Comments |
|---|---|---|
| March 2021 | Technical Readiness Working Group (TRWG) created | |
| November 2021 | Climate-related disclosures prototype published | |
| 31 March 2022 | ED/2022/S2 Climate-related Disclosures published |
Comments requested by 29 July 2022 |
| 26 June 2023 | IFRS S2 Climate-related Disclosures published | Applies to annual reporting periods beginning on or after 1 January 2024 |
