The IFRS Foundation has published a new guide to assist companies in reporting climate-related information in accordance with the International Sustainability Standards Board (ISSB) Standards. The guide aims to support businesses as they adopt IFRS S2 Climate-related Disclosures, which came into effect on 1 January 2024.
The publication provides practical insights into the key requirements of IFRS S2, explaining how companies can use the standard to enhance transparency and improve investor confidence. It also offers guidance on applying the global baseline approach for sustainability disclosures, enabling organisations to align their reporting with regulatory requirements in various jurisdictions.
Emmanuel Faber, Chair of the ISSB, highlighted the importance of the guide in helping companies navigate the new reporting landscape. He noted that IFRS S2 builds on established frameworks, such as the Task Force on Climate-related Financial Disclosures (TCFD), ensuring consistency and comparability in climate-related financial reporting.
The IFRS Foundation developed the guidance in response to feedback from businesses and investors seeking greater clarity on how to implement ISSB Standards effectively. It outlines key principles, including materiality, scenario analysis, and the role of governance in climate reporting.
The guide also supports companies in integrating climate-related risks and opportunities into their financial statements, ensuring that disclosures reflect the potential impact of climate change on business operations and long-term strategy.
As jurisdictions worldwide begin incorporating ISSB Standards into their sustainability reporting frameworks, the IFRS Foundation aims to provide ongoing resources to facilitate smooth adoption. The guidance is intended to help companies enhance the quality of their climate disclosures, improving transparency for investors and other stakeholders.
