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.
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.