Complimenting the previously released educational guidance, the IFRS Foundation has published new educational material to help companies apply the ISSB Standards when disclosing anticipated financial effects of sustainability-related risks and opportunities.
This guidance supports the implementation of IFRS S1 and IFRS S2 and follows two webcasts released in May 2024. It’s designed to help reporting entities tell a clear story about how climate and other sustainability risks may affect their financial performance, position and cash flows over time.
The material is not intended to change the requirements of either Standard, but support entities when implementing them for the first time.
Investors are particularly interested in understanding the relationship between sustainability information and the information presented in a reporting entity’s financial statements. As a result, IFRS SDS require reporting entities to provide information about the current effects of sustainability-related risks and opportunities on its financial position, financial performance and cash flows, and the anticipated financial effects in the short, medium and long term.
This new guidance helps to explain:
It also includes five practical examples, showing how companies in different sectors might disclose anticipated financial effects—from flood risks to carbon pricing and e-waste opportunities.
We are pleased to see the ISSB continue to invest in the implementation of their sustainability disclosure standards, via the release of more educational materials. In our view, these materials will give entities useful guidance and help to apply the requirements set out in the IFRS SDS.
You can access the materials using the following link:
The links to previously issued materials can be accessed using these links:
On 10 July 2025, the IFRS Foundation published educational material about using ISSB Industry-based Guidance when applying ISSB Standards.
The IFRS Foundation has published guidance on disclosures about transition plans and jurisdictional profiles to help support the implementation of IFRS SDS.
The IFRS Foundation has published educational material on Greenhouse Gas disclosure requirements in IFRS S2.
The IFRS Foundation has published its first IFRS SDS guide, which aims to provide practical guidance on how to report climate-only information when utilising the ‘climate-first’ transition relief option.
The U.S. Securities and Exchange Commission (SEC) adopted on 6 March 2024 some significant and highly anticipated climate-related disclosure requirements for public companies in their periodic disclosure reports and in registration statements for public offerings (Final Rules).
On 2 May 2024, the long-awaited and highly anticipated interoperability guidance has been jointly issued by the IFRS Foundation and European Financial Reporting Advisory Group (EFRAG).
On 26 June 2023 the International Sustainability Standards Board (ISSB) released its first two International Sustainability Disclosure Standards (IFRS SDS or the Standards) that become effective for periods beginning on or after 1 January 2024. Get to know here what they are about and how they arose.
At its April meeting, the International Sustainability Standards Board (ISSB) decided to add to the transitional reliefs already proposed in relation to the adoption of its first two Sustainability Standards – IFRS S1 ‘General Requirements for Disclosure of Sustainability-related Financial Information’ and IFRS S2 ‘Climate-related Disclosures’.
