ISSB Issues Inaugural Standards For ESG-Related Disclosure

Introduction

On June 26, 2023, the International Sustainability Standards Board (ISSB) issued the following two inaugural standards for environmental, social, and governance (ESG) related disclosure. The ISSB was formed by the International Financial Reporting Standards (IFRS).

1. IFRS S1 – General Requirement for Disclosure of Sustainability-related Financial Information (IFRS S1).
2. IFRS S2 – Climate-related Disclosures (IFRS S2 and together with IFRS S1, the ISSB Standards).

These two distinct standards are the much-anticipated updates following the ISSB's consultation on its previously proposed international standards (Exposure Drafts), published on March 31, 2022.