IFRS Foundation Releases Guide to Help Companies Report Climate-Only Disclosures Under ISSB Standards
- The IFRS Foundation released a guide to help companies report only climate-related information when using ISSB Standards.
- The guide supports ISSB’s transition reliefs, addressing investor demand for clear climate disclosures.
- Companies applying ISSB Standards for climate disclosures must align with IFRS S1 requirements.
What’s new:
The IFRS Foundation published Applying IFRS S1 when reporting only climate-related disclosures in accordance with IFRS S2, a guide aimed at helping companies navigate climate-specific reporting under ISSB Standards.
Why it matters:
Investors have emphasized the urgent need for climate-related disclosures to inform decision-making. Meanwhile, some companies have voiced concerns about data availability and readiness to disclose broader sustainability-related risks.
The ISSB’s approach:
To address these concerns, the ISSB introduced transition reliefs, including the ‘climate-first’ transition relief. This allows companies to focus solely on climate-related disclosures while ensuring compliance with IFRS S1’s relevant requirements.
Related Article: IFRS Foundation Publishes Guide to Help Companies Identify, Disclose Sustainability Risks
What they’re saying:
The ISSB remains committed to “supporting the implementation of ISSB Standards, helping companies prepare information and helping investors receive decision-useful information.”
The bottom line:
Companies opting for climate-only disclosures under ISSB Standards must still apply related IFRS S1 requirements, ensuring transparency and alignment with investor expectations.
Follow ESG News on LinkedIn
The ESG News Editorial Team is comprised of veteran financial journalists and sustainability analysts dedicated to providing real-time, objective reporting on global ESG regulations, climate finance, and corporate governance. Our desk monitors daily developments from the SEC, IFRS, CSRD and international regulatory bodies to ensure our 1M+ readers receive accurate, data-driven insights into the evolving sustainable investment landscape. Follow the ESG News Editorial Team for expert reporting on global sustainability standards, ESG disclosures, and climate policy. Access over 10,000 investigative reports and real-time updates.
