With the standards, companies will provide sustainability-related information alongside their financial statements in annual reports starting from 2024. However, countries must decide whether to mandate reporting by the standards.
The International Sustainability Standards Board (ISSB) issued on June 26 its inaugural standards — IFRS S1 and S2 — a landmark move that aims to align sustainability-related disclosures in capital markets worldwide.
Corporates and investors now have a common language to disclose the effects of climate-related risks and opportunities on a company’s prospects. This will help set a global baseline for disclosures among companies.
