IFRS Foundation Launches Guide to Help Companies Apply ISSB Standards Voluntarily

New Delhi, Sept 26, 2024: Global investors have urged companies worldwide to adopt the International Sustainability Standards Board (ISSB) Standards voluntarily, which can providethem with critical and globally comparable data in regions where regulatory requirements to apply ISSB standards are absent. 

To assist companies in this effort, the IFRS Foundation has released a guide titled "Voluntarily Applying ISSB Standards—A Guide for Preparers" during New York Climate Week. This guide aims to help companies start implementing the ISSB Standards voluntarily and effectively communicate their progress to investors.

As more regions in the world introduce sustainability disclosure requirements, with many incorporating ISSB Standards, these standards serve as a global benchmark. This allows companies to meet international disclosure requirements and offers investors a consistent baseline of sustainability-related information to make informed decisions.

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Presenting the guide at the New York Climate Week,ISSB Chair Emmanuel Faber, said, “Companies around the world already provide investors with sustainability-related information in response to investor demand. However, they use a patchwork of frameworks and standards to do so, leaving investors unable to compare the performance and prospects of companies. With many frameworks and standards now consolidated into the ISSB, the voluntary application guide helps companies navigate from their current reporting practices to applying ISSB Standards, providing a cost-effective route for companies to provide decision-useful, assurable financial information to investors”.

The guide offers practical advice, especially for companies in areas without mandatory ISSB Standards, on how to describe their application of these standards accurately. This publication adds to resources supporting the application of IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures). When combined with other tools like the European Sustainability Reporting Standards (ESRS) —ISSB Standards Interoperability Guidance, it helps companies align with investor expectations and regulatory demands globally.

The ISSB Investor Advisory Groupconsists of 117 members from 62 major asset owner and manager organisations. It plays a vital role in offering strategic input on the development of ISSB Standards.