The IFRS Basis introduced the publication of a brand new information, geared toward supporting firms starting to use the ISSB requirements for sustainability reporting with their preliminary disclosures centered solely on climate-related info.
The IFRS Basis’s Worldwide Sustainability Requirements Board (ISSB) was launched in November 2021, with the purpose to develop IFRS Sustainability Disclosure Requirements to offer buyers with details about firms’ sustainability dangers and alternatives. The IFRS launched the inaugural common sustainability (IFRS S1) and local weather (IFRS S2) reporting requirements in June 2023.
Whereas growing the requirements, the ISSB additionally launched “reliefs,” enabling firms making use of the requirements to briefly focus solely on sure key areas or items of data, given issues round knowledge availability and preparedness. One of many key reliefs offered by the ISSB was the “climate-first” transition reduction – the main target of the brand new information – which allowed firms to start IFRS S1 reporting by disclosing solely on climate-related info, with future sustainability matters to observe in subsequent years.
When introducing the climate-first reduction, the ISSB defined that “buyers have indicated that whereas they want constant, complete sustainability-related info throughout all dangers and alternatives to tell their funding decision-making, the necessity for disclosures about climate-related dangers and alternatives is essentially the most pressing.”
Key matters coated within the new steering embrace definitions and explanations of materiality concerns to be taken in making ready sustainability stories, components to contemplate in disclosing climate-related dangers and alternatives, necessities round metrics and targets to be utilized, disclosures on sources of steering firms might think about in figuring out climate-related dangers and alternatives, disclosures abut judgements made in making ready climate-related disclosures, along with technical components equivalent to location of disclosures inside firm reporting and timing of reporting, amongst others.
In its assertion saying the discharge of the brand new steering, the IFRS Basis stated:
“The publication of this information is a part of the ISSB’s dedication to supporting the implementation of ISSB Requirements, serving to firms to organize info and serving to buyers to obtain decision-useful info.”
Click on right here to entry the brand new information, “Making use of IFRS S1 when reporting solely climate-related disclosures in accordance with IFRS S2.”
