Established by the IFRS Foundation, the ISSB was created to develop a global baseline of sustainability disclosure standards that meet the information needs of investors, support companies in providing consistent data to global markets, and enable alignment with jurisdiction-specific or broader stakeholder-focused frameworks. The initiative quickly gained momentum, receiving strong backing from major global players including the G7, G20, IOSCO, the Financial Stability Board, and finance ministers from over 40 jurisdictions.
Building on legacy frameworks for robust standards
In June 2023, the IFRS Foundation published IFRS S1 and IFRS S2 (also known as ISSB Standards), along with supporting guidance. IFRS S1 sets out general requirements for disclosing sustainability-related financial information, while IFRS S2 focuses on climate-related disclosures. Both standards build on the legacy of key market-led initiatives such as the Climate Disclosure Standards Board (“CDSB”), the Task Force on Climate-related Financial Disclosures (“TCFD”), the Value Reporting Foundation (“VRF”), and the Sustainability Accounting Standards Board (“SASB”).
The consolidation of CDSB and VRF into the ISSB brought together foundational elements like the TCFD’s four pillars and SASB’s industry-specific guidance, now embedded in the IFRS framework.
The TCFD was officially disbanded in October 2023, but since its recommendations have been fully incorporated into IFRS S1 and S2, companies adopting these standards will inherently meet TCFD requirements. In November 2024, the IFRS Foundation published a comparison guide outlining the differences between IFRS S2 and the TCFD recommendations. These differences fall into three categories: wording variations that remain broadly consistent with the TCFD; requirements that align with the TCFD but are presented in greater detail; and additional requirements and guidance not found in the original TCFD framework, though still consistent with its intent. Similarly, companies that have applied the SASB Standards in recent years will find a strong foundation for transitioning to IFRS S1 and S2. The ISSB’s Sustainability Standards Navigator provides updated versions of 68 out of 77 industry-specific climate disclosure guides developed by SASB, covering sectors such as Consumer Goods, Extractives and Minerals Processing, Financials, Food and Beverage, Health Care, Infrastructure, Renewable Resources and Alternative Energy, Resource Transformation, Services, Technology and Communications, and Transportation.
On a road to mandatory ISSB adoption
In a recent webinar titled “Governance of Sustainability-related Risks and Opportunities”, hosted by the IFRS Foundation, ISSB Board Member Michael Jantzi noted that over 35 jurisdictions are now on the path toward mandatory adoption of the ISSB Standards. This aligns with a statement made earlier in a March 2025 staff paper on the project “Enhancing the SASB Standards”, where the IFRS staff and SASB Board Advisers reported: “(…) thirty-five jurisdictions have already decided to use, or are taking steps to introduce, ISSB Standards into their legal or regulatory frameworks. Together, these jurisdictions account for around 60% of global GDP and over 40% of global market capitalisation.”
