As 2024 progressed, companies worldwide confronted a steep learning curve in implementing IFRS Sustainability Disclosure Standards. Key challenges emerged around data collection, quality, and verification. Many firms lacked sufficient internal sustainability data systems aligned with IFRS S1’s broad governance, strategy, and risk management disclosure requirements, alongside IFRS S2’s detailed climate-related metrics, including greenhouse gas emissions and scenario analyses.
Smaller companies and those in emerging markets showed particular difficulties accessing reliable ESG data, calling for phased approaches and proportional application of standards. ISSB responded by publishing guidance and relief options allowing staggered disclosures and exemptions from comparative information in the initial reporting year.
Meanwhile, regulators and auditors ramped up capacity-building efforts to ensure high-quality implementation. Cross-sector collaboration and technological innovation also accelerated, with companies investing in digital platforms for real-time impact measurement. Data transparency and third-party assurance became priorities to counter concerns over greenwashing and ensure investor confidence.
This period underscored that sustainability reporting is not merely an accounting exercise but requires organizational transformation integrating ESG into strategic decision-making.
For detailed analysis: https://www.esgtoday.com/ifrs-sustainability-and-climate-reporting-standards-to-take-effect-in-2024/
