The IFRS Foundation’s new guide, ‘Voluntarily applying ISSB Standards – A guide for preparers’, encourages companies to voluntarily apply IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures and is primarily aimed at those operating in jurisdictions that lack the regulatory requirements to apply ISSB Standards.

Included within the short guide is:

• a summary of the transition reliefs and proportionality mechanisms available in IFRS S1 and IFRS S2; and
• tips on how to communicate partial application of ISSB Standards (particularly for those companies already applying disclosure frameworks and standards such as the Task Force on Climate-Related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB) Standards, Climate Disclosure Standards Board (CDSB) and the Integrated Reporting Framework.

The new guide is the IFRS Foundation’s response to investor calls for quicker global uptake of the ISSB Standards. While increasing numbers of jurisdictions around the world begin to consider and consult on introducing sustainability disclosure requirements, the capital markets want decision-useful, globally comparable sustainability information as soon as possible. Indeed, application of the ISSB Standards has already been publicly encouraged by a number of investors including BlackRock, Vanguard, Capital Group and Neuberger Berman.

Speaking at New York Climate Week, ISSB Chair Emmanuel Faber said about the new guide: “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 Corporate Reporting Faculty provides a range of resources and guidance on current and future narrative reporting requirements, including IFRS S1 and IFRS S2. ICAEW members can join the faculty to receive notifications of the latest resources as they become available, plus opportunities to join exclusive events and networking opportunities, at no extra cost. Corporate Reporting Faculty membership is available to non-ICAEW members at a charge. To find out more visit icaew.com/joincrf.