• 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.

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