In October 2024, the corporate world witnessed a landmark shift as the IFRS Foundation’s International Sustainability Standards Board (ISSB) led the global rollout of the IFRS Sustainability Disclosure Standards—IFRS S1 and IFRS S2. Designed to create a global baseline for sustainability reporting, these standards address investor demand for consistent, comparable, and decision-useful information on environmental, social, and governance (ESG) matters. Companies are now mandated to disclose sustainability-related financial information alongside traditional financial statements, enhancing transparency on risks and opportunities from sustainability issues, especially climate.
This rollout follows years of intensive development and global consultation. The standards draw from established frameworks like the Taskforce on Climate-related Financial Disclosures (TCFD) and reference the Global Reporting Initiative (GRI) and European Sustainability Reporting Standards (ESRS) to ensure comprehensive coverage. The IFRS Foundation prioritized investor-focused, auditable disclosures to support financial markets in integrating ESG factors effectively.
Despite diverse regulatory environments, 36 jurisdictions had adopted or were moving towards using ISSB standards by mid-2025, signaling accelerating global convergence. Early adopters include major capital market centers in Europe, Asia, and the Americas, with transition reliefs easing initial challenges. The first corporate disclosures under these standards emerged in 2025, setting a precedent for integrated reporting’s future.
For detailed analysis: https://www.ifrs.org/news-and-events/news/2025/04/ifrs-foundation-publishes-2024-annual-report-financial-statements/
