Summary
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Details
- Global
ISSB Standards are designed for capital-market-oriented entities globally (especially listed and other reporting companies). Adoption is occurring jurisdiction by jurisdiction, as regulators decide whether and how to build or align their local disclosure rules with IFRS S1 and IFRS S2.
Deep dive
Background
The International Sustainability Standards Board (ISSB) was announced at COP26 in Glasgow in November 2021 and then formally created under the IFRS Foundation to deliver a global baseline of investor-focused sustainability disclosure standards. In June 2023 it issued its first two standards, IFRS S1 – General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 – Climate-related Disclosures, effective for reporting periods beginning 1 January 2024. Unlike impact-focused frameworks such as the Global Reporting Initiative (GRI), ISSB Standards use a financial materiality lens and are designed to sit alongside IFRS Accounting Standards to support capital-market decisions. They consolidate and build on earlier initiatives, particularly the TCFD recommendations and SASB Standards, reducing fragmentation for preparers and users. The International Organization of Securities Commissions (IOSCO) endorsed IFRS S1 and S2 in July 2023, signaling to securities regulators that they are suitable as a basis for mandatory sustainability reporting around the world.
What the ISSB Standards ask companies to report
The current ISSB framework has two core standards. IFRS S1 sets general requirements for sustainability-related financial disclosures: entities must explain significant sustainability-related risks and opportunities that could reasonably affect cash flows, access to finance or cost of capital, organized around governance, strategy, risk management, and metrics and targets. Companies identify material topics, often using industry-based guidance from SASB, and provide information that is connected to, and ideally published with, their financial statements.
IFRS S2 focuses specifically on climate. It requires disclosure of transition and physical risks, climate-related opportunities, resilience analysis where practicable, and metrics including Scope 1, Scope 2 and (in most cases) Scope 3 greenhouse-gas emissions, supported by guidance such as IFRS’s GHG education material. Entities must also explain targets, transition plans, and related capital expenditure, and report performance against these over time.
Current Status and Outlook
ISSB standards are currently in operation. Adoption is jurisdiction-by-jurisdiction: as of June 2025, more than 30 jurisdictions, representing over half of global GDP, have already taken steps to adopt IFRS S1 and S2, often with phased-in requirements and assurance. Early corporate adopters include HSBC, Johnson Controls and Munich Re, which now structure climate and broader sustainability disclosures using the ISSB’s governance-strategy-risk-management-metrics model. Momentum is likely to grow as regulators in major economies finalize rules and investors demand comparable, investor-grade information. The ISSB is consulting on future priorities such as biodiversity and human capital, while refining climate guidance and interoperability with other regimes, so the framework will probably expand over the coming decade.
Resources
IFRS S1 standard page – Official overview, HTML version and downloads for IFRS S1.
IFRS S2 standard page – Official overview, HTML version and downloads for IFRS S2.
IFRS Sustainability Knowledge Hub (ISSB) – Central hub for guidance, examples and educational material on ISSB Standards.
Jurisdictional Guide and use by jurisdiction – Adoption/implementation guide and live map of how countries are using ISSB Standards.
IFRS comparison and implementation materials for IFRS S2 – Includes comparison with TCFD and guidance on GHG and transition-plan disclosures:
