ISSB

The International Sustainability Standards Board (ISSB) is a standards-setting body established by the IFRS Foundation to create a global baseline for sustainability-related financial disclosures. Its aim is to provide investors and other capital-market participants with decision-useful information about enterprise value, risk exposure, and opportunities arising from sustainability matters.

Formation and governance: The ISSB was created by the IFRS Foundation Trustees to harmonize and streamline sustainability reporting on a worldwide basis. It operates under the governance framework of the IFRS Foundation, with members appointed to its board and a due-process system that includes public consultation and transparency. The ISSB collaborates with international regulators and standard-setters and seeks alignment with other major reporting initiatives.

Scope and standards: The ISSB develops global reporting standards for sustainability disclosures that are intended to be concise, decision-useful, and comparable across jurisdictions. Its initial standards, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, cover general disclosure requirements and climate-related information, respectively. The standards are designed to be compatible with existing reporting regimes and to align with investors’ information needs, while allowing jurisdictions to adopt or adapt them within their regulatory frameworks.

Adoption and impact: The ISSB standards are voluntary at the global level, with adoption proceeding through national standard-setters and regulators. The goal is to reduce fragmentation and improve cross-border comparability of sustainability disclosures. The ISSB builds on, and seeks alignment with, broader frameworks and initiatives such as the TCFD, SASB, and GRI, while aiming to converge reporting practices toward a common global baseline.

Relation to IFRS: The ISSB is part of the IFRS Foundation ecosystem and complements IFRS Accounting Standards by focusing on sustainability information that affects enterprise value, without replacing financial reporting requirements.