In April 2025, the IFRS Foundation underscored the critical importance of connecting financial statements with sustainability disclosures to provide a holistic view of company performance and risks. The IFRS Sustainability Disclosure Standards are designed to complement and integrate with existing IFRS financial standards.
This connectivity ensures that long-term sustainability risks, such as climate change impacts, are transparently linked to their expected financial effects, fostering more comprehensive investor decision-making.
The IFRS Foundation encouraged preparers and regulators globally to align reporting cycles, governance processes, and assurance practices across financial and sustainability reports, pushing forward truly integrated reporting practices.
The approach responds to investor demand for seamless data that reflects how sustainability issues affect enterprise value and financial condition over time.
For detailed analysis: https://www.ifrs.org/news-and-events/news/2025/08/disclosing-information-anticipated-financial-effects/
