International Sustainability Standards Board
The International Sustainability Standards Board (ISSB) was established by the International Financial Reporting Standards (IFRS) Foundation to provide a global standard for sustainability reporting. Its main goal is to offer consistent and transparent climate-related disclosures, helping organisations assess and report the financial implications of climate risks. As climate-related reporting becomes more mandatory across industries, the need for a standardised approach to disclosure has grown. The ISSB's standards are designed to guide organisations in identifying and reporting physical and transition climate risks, such as extreme weather events and changes in regulations or market conditions.
The ISSB has developed two main standards:
- IFRS S1, which outlines general requirements for sustainability-related disclosures.
- IFRS S2, which specifically focuses on climate-related disclosures, aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
By establishing these standards, the ISSB enables organisations to disclose how climate risks impact their operations, financial performance, and long-term strategies. The framework supports businesses and investors in making informed decisions and contributes to global efforts to address climate change.