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International Sustainability Standards Board (ISSB) Update

The ISSB Request for Information (RFI) on its Agenda Priorities and all comment letters are posted here. EFRAG’s draft comment letter (DCL) urges the ISSB to put the emphasis on (i) a clear direction of travel with a definition of the universe of sustainability-related information to be ultimately covered and of the corresponding underlying concepts, (ii) the priority to be given to interoperability in structure and content with other sustainability reporting standards and (iii) connectivity to be included as a priority topic in the standard setting workplan, together with the topical standards.

Since issuing the inaugural IFRS Sustainability Disclosure Standards, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, the ISSB has made considerable progress with their adoption and implementation as the July 2023 ISSB podcast explains.

On 25 July 2023 the International Organization of Securities Commissions (IOSCO) announced the endorsement of the ISSB Standards following its comprehensive review of the Standards. In a speech the same day the Chair of the IFRS Foundation Trustees Erkki Liikanen welcomed the IOSCO endorsement.

Following the Financial Stability Board’s announcement that the work of the Task force on Climate-related Financial Disclosures (TCFD) has been completed—with the ISSB Standards marking the 'culmination of the work of the TCFD'—the IFRS Foundation published a comparison of IFRS S2 with the TCFD Recommendations. On 27 July 2023 the ISSB published the Proposed IFRS Sustainability Disclosure Taxonomy for public comment. The proposals reflect the disclosure requirements in the ISSB’s first two Standards—IFRS S1 and IFRS S2. The consultation is open for comment until 26 September 2023.

An increasing number of countries are considering the standards for national adoption. The Financial Reporting Council (FRC), in its role as The Secretariat to the UK Sustainability Disclosure Technical Advisory Committee (TAC), has issued a call for evidence to inform the proposed endorsement of the IFRS Sustainability Disclosure Standards in the UK. The UK government's web page for the UK Sustainability Disclosure Standards is live here

A summary of the 27 July 2023 ISSB meeting is available in the July 2023 ISSB Update. And finally, watch this webcast where Vice-Chairs of the IASB and ISSB discuss progress made in facilitating connections between financial statements and sustainability-related financial disclosures and in the work of the two boards.

The ISSB has commenced implementation support activities. Sue Lloyd, ISSB Vice-Chair, shared a detailed overview of IFRS S1 in a webinar on 12 July 2023 (access the recording here and slides here followed on 18 July 2023 by a webinar on IFRS S2 (access the recording here and slides here). Webinar transcripts will be posted to the above links shortly. Finally, the ISSB has announced the launch of the ISSB Knowledge Hub a free online resource for preparers, designed to help them understand and get ready for applying S1 and S2.