The ISSB Standards, IFRS S1 and IFRS S2, are global baseline standards for disclosing sustainability-related and climate-related risks and opportunities that could affect a company's financial prospects.
The ISSB Standards are sustainability disclosure standards issued by the International Sustainability Standards Board (ISSB), part of the IFRS Foundation that also sets international accounting standards. They were published in June 2023 and are designed to give investors consistent, comparable information alongside financial statements.
Building on the TCFD recommendations, both standards are organized around governance, strategy, risk management, and metrics and targets.
Jurisdictions decide whether and how to adopt the standards. As of mid-2026, S&P Global reported that 35 jurisdictions had adopted them on a voluntary or mandatory basis, with more planning to follow. Requirements, timing and any relief for Scope 3 vary by country.
A listed engineering firm in a jurisdiction that adopted IFRS S2 disclosed how its board oversees climate risk, how extreme heat could affect outdoor work productivity and heat stress risk, its Scope 1, 2 and 3 emissions, and its targets to reduce them.
Yes, in effect. The TCFD disbanded in 2023 and the IFRS Foundation took over monitoring of climate disclosures.
Only where a jurisdiction has made them mandatory. Elsewhere they are voluntary.
It means focusing on sustainability matters that could reasonably affect a company's cash flows, access to finance or cost of capital.
Part of SafetyIQ's EHS glossary: plain-English definitions of workplace health and safety terms.
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