In September 2025, the International Sustainability Standards Board (ISSB), operating under the IFRS Foundation, made significant strides in refining corporate sustainability reporting, a development that is essential amid growing global demands for transparency and accountability on environmental, social, and governance (ESG) matters. During their monthly meetings held on 24, 25, and 26 September 2025, the ISSB members took several pivotal decisions and discussed potential amendments, indicating the maturation of the IFRS Sustainability Disclosure Standards framework and the ISSB’s strategic direction moving forward.
One of the major highlights was the detailed discussion and near-finalization of amendments to the IFRS S2 Climate-related Disclosures standard. The proposed changes primarily focused on easing the reporting burden related to greenhouse gas (GHG) emissions, especially Category 15 concerning financed emissions. Recognizing the complexities organizations face in accurately measuring and reporting comprehensive GHG data, the ISSB tentatively approved relief measures. These provisions include selective exemptions and guidance clarifications, such as requiring entities to disclose what portions of financed emissions are excluded under these reliefs to uphold transparency. These negotiated reliefs reflect the board’s effort to balance rigorous investor-relevant disclosure with practical considerations faced by preparers, encouraging broader adoption and consistency without compromising the standards’ integrity.
Additionally, the ISSB tentatively endorsed a less prescriptive approach concerning the classification systems used to disaggregate financed emissions by industry. This decision promotes flexibility, allowing entities engaged in multi-sector activities like commercial banking and insurance to use differing industry-standard classifications aligned with respective activities without demanding uniform application. This nuanced approach facilitates clearer and more meaningful reporting by recognizing the operational realities of complex financial institutions.
The ISSB also addressed technical matters related to adjusting comparative information in the initial adoption year of the amendments, generally requiring entities to restate comparative disclosures unless impracticable. These technical deliberations ensure that reporting remains consistent and comparable over time, aiding users in identifying trends and improvements in sustainability performance.
In addition to these decisions, the board discussed ongoing projects addressing nature-related risks and opportunities—an emerging and urgent area of sustainability reporting. The ISSB is assessing how existing IFRS standards can be supplemented, including potentially building on recommendations from the Taskforce on Nature-related Financial Disclosures (TNFD), to better meet the information needs of investors and other primary users regarding biodiversity and ecosystem impacts.
The board’s transparent communication of these deliberations and tentative decisions reflects a robust governance process with comprehensive stakeholder consultation. With all present members agreeing on key decisions and compliance with due process assured, the ISSB appears poised to finalize these amendments by the end of 2025. This will provide companies and investors globally with refined, pragmatic reporting tools that better align financial and sustainability disclosures.
This progress occurs against a backdrop of increasing regulatory and investor demands for sustainability-related financial disclosures that support decision-making and foster capital allocation aligned with long-term value creation and climate resilience. The IFRS Foundation and ISSB’s work consolidates their role as global leaders in harmonization of sustainability reporting standards, contributing decisively to the evolution of corporate reporting ecosystems.
For a comprehensive review and official details, visit:
https://www.ifrs.org/news-and-events/updates/issb/2025/issb-update-september-2025/
