ISSB

The International Sustainability Standards Board (ISSB) is an international body that develops global standards for sustainability-related financial disclosure. Its aim is to provide a consistent, comparable and reliable framework so that companies can report on the sustainability risks and opportunities that affect their business, including their carbon footprint and greenhouse gas emissions.

What is the ISSB?

The ISSB was launched in November 2021 by the IFRS Foundation, the same organisation behind the IFRS accounting standards. It was created to consolidate and build on existing frameworks, including the SASB standards (now maintained by the ISSB) and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), into a single global baseline.

The ISSB responds to growing demand from investors, regulators and other stakeholders for clear, standardised information on how companies manage sustainability-related risks and opportunities.

IFRS S1 and IFRS S2

In June 2023 the ISSB issued its first two standards, which took effect for annual reporting periods beginning on or after 1 January 2024:

• IFRS S1: general requirements for disclosing sustainability-related risks and opportunities.
• IFRS S2: climate-related disclosures, covering both physical and transition risks and requiring disclosure of Scope 1, 2 and (where material) Scope 3 emissions.

Both standards follow the TCFD's four-pillar structure: governance, strategy, risk management, and metrics and targets. They are designed to be used alongside the GHG Protocol for measuring emissions. In 2024, responsibility for monitoring companies' progress on climate-related disclosures was transferred from the Financial Stability Board to the IFRS Foundation, effectively folding the TCFD's role into the ISSB framework.

Why standardisation matters

The lack of standardised sustainability disclosure has long made it hard for companies and investors to compare environmental performance or assess progress towards climate neutrality. By providing a common global baseline, the ISSB improves transparency and comparability and helps build trust among stakeholders, while allowing individual jurisdictions to add their own requirements on top.

The ISSB and other regulations

The ISSB standards are designed to interoperate with regional rules. In the European Union, the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) set out detailed disclosure requirements, and work has been done to improve interoperability between the ESRS and IFRS S1 and S2 so that companies can avoid duplicate reporting. As of early 2026, around twenty jurisdictions had adopted or committed to adopt the ISSB standards on a voluntary or mandatory basis.

How companies benefit

• Transparency: clear, consistent reporting on climate and sustainability builds trust with investors and stakeholders.
• Risk and opportunity identification: measuring emissions and climate risks helps identify areas for efficiency and cost reduction.
• Regulatory readiness: ISSB-aligned reporting helps companies meet requirements across multiple jurisdictions.
• Access to capital: transparent climate risk disclosure can improve access to sustainability-focused finance.

The ISSB and Manglai

Reporting under IFRS S1 and S2 depends on a solid emissions inventory and reliable environmental data. At Manglai we help companies measure their carbon footprint and prepare the data behind their sustainability disclosures, in line with frameworks such as the ISSB standards and the GHG Protocol. Discover how Manglai can help you.