IFRS Sustainability Disclosure Standards Integration Deepens with Financial Reporting

In August 2025, the IFRS ISSB further emphasized the integration of anticipated financial effects from sustainability risks within the broader IFRS ecosystem. This integration enhances clarity on how sustainability issues influence asset valuations, impairments, and cash flow forecasts.

The IFRS released new guidance helping companies explain the financial consequences of climate-related and other ESG risks, strengthening disclosures’ decision-usefulness.

This development marks a mature stage in aligning sustainability and financial accounting standards, supporting investors’ holistic analysis of company performance.

Practitioners praised the guidance for increasing consistency and bridging previous disconnects between sustainability disclosures and financial results.

For detailed analysis: https://www.ifrs.org/news-and-events/news/2025/08/disclosing-information-anticipated-financial-effects/