- 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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