IFRS S1 and IFRS S2 published

On 26 June 2023, the In­ter­na­tio­nal Sus­tai­na­bi­lity Stan­dards Board (ISSB) publis­hed the first two IFRS Sus­tai­na­bi­lity Dis­clo­sure Stan­dards IFRS S1 "Ge­ne­ral re­qui­re­ments for the dis­clo­sure of sus­tai­na­bi­lity-re­la­ted fi­nan­cial in­for­ma­tion" and IFRS S2 "Cli­mate-re­la­ted dis­clo­sures". The two stan­dards con­tain re­qui­re­ments for the dis­clo­sure of ma­te­rial in­for­ma­tion about an en­tity's si­gni­fi­cant sus­tai­na­bi­lity-re­la­ted risks and op­por­tu­nities and - in ad­di­tion to fi­nan­cial in­for­ma­tion - are in­ten­ded to enable glo­bally uni­form re­por­ting of these.

IFRS S1 con­ta­ins ge­ne­ral re­qui­re­ments ai­med at re­qui­ring an en­tity to dis­close in­for­ma­tion about its sus­tai­na­bi­lity-re­la­ted risks and op­por­tu­nities that is us­eful to the pri­mary users of ge­ne­ral pur­pose fi­nan­cial re­por­ting in ma­king de­ci­si­ons about re­sour­ces to be al­lo­ca­ted to the en­tity.

© unsplash

IFRS S2 sets out spe­ci­fic cli­mate-re­la­ted dis­clo­sures and in­clu­des re­qui­re­ments for iden­ti­fy­ing, as­ses­sing and dis­clo­sing in­for­ma­tion about cli­mate-re­la­ted risks and op­por­tu­nities that are us­eful to pri­mary users of ge­ne­ral pur­pose fi­nan­cial re­por­ting.

Both stan­dards take full ac­count of the re­com­men­da­ti­ons of the Task Force on Cli­mate-re­la­ted Fi­nan­cial Dis­clo­sures (TCFD).

The two stan­dards are to be ap­plied for re­por­ting pe­riods be­gin­ning on or af­ter 01 Ja­nu­ary 2024. Ear­lier ap­pli­ca­tion is per­mit­ted, pro­vi­ded that IFRS S2 is also ap­plied. Howe­ver, the ap­pli­ca­tion of the ISSB stan­dards is not yet man­datory in Eu­rope and is de­pen­dent on their ad­op­tion by a ju­ris­dic­tion into ap­plica­ble law. Volun­tary (ad­di­tio­nal) ap­pli­ca­tion of the stan­dards is pos­si­ble.

Note: The stan­dards and other ac­com­pany­ing do­cu­ments (e. g. Ba­sis for Con­clu­si­ons, Ac­com­pany­ing Gui­dance, Ef­fects Ana­ly­sis, etc.) are avail­able on the ISSB web­site at the fol­lo­wing link.

back to top