Acknowledging diversity in company sizes and sectors, the ISSB in early 2025 published pivotal guidance on applying proportionality in sustainability reporting and conducting scenario analyses. This guidance enables smaller and less complex organizations to tailor disclosures without compromising relevance or comparability, addressing concerns about the burden of comprehensive ESG reporting.
Scenario analysis under IFRS S2 was emphasized as crucial for companies to assess climate-related risks and opportunities under various future pathways, including transition and physical risks. The guidance underlined transparent assumptions and methodologies to enhance comparability.
ISSB Chair Emmanuel Faber emphasized the ongoing dialogue with stakeholders to refine standards and deliver tools that support practical implementation while preserving investor decision utility.
This development marked a shift toward more nuanced and practical sustainability disclosures aligned with real-world company capabilities.
For detailed analysis: https://www.spglobal.com/sustainable1/en/insights/december-2024-where-does-the-world-stand-on-issb-adoption
