Adoption or other use of ISSB Standards

The range of approaches that a competent regulatory authority in a jurisdiction may take to adopt, apply or otherwise be informed by ISSB Standards when introducing sustainability-related disclosure requirements in the jurisdiction’s legal and regulatory framework. This range includes approaches that involve the adoption or other use of IFRS S1 and IFRS S2 directly, as well as the introduction of local sustainability-related disclosure requirements (or standards) designed to deliver functionally aligned outcomes to those resulting from the application of IFRS S1 and IFRS S2.

Descriptions of jurisdictional approaches

Identification of the manner in which a jurisdiction seeks to adopt or otherwise use ISSB Standards for sustainability-related disclosure requirements.

Features

Factors and considerations that form the basis for, and that will inform the IFRS Foundation's description of, a jurisdiction's approach to introducing sustainability-related disclosure requirements.

Functionally aligned outcomes

Local sustainability-related disclosure requirements (or standards) designed to deliver functionally aligned outcomes to those resulting from the application of IFRS S1 and IFRS S2 provide the same nformation and outcomes on sustainability-related risks and opportunities that is useful to primary users of general purpose financial reports. Functionally aligned sustainability-related disclosures need to meet the criteria articulated in the Conceptual Foundations, Core Content and General Requirements in paragraphs 10–72 of IFRS S1, among other things.

Jurisdictional modifications

Changes to or exemption from requirements in ISSB Standards other than the transition adoption reliefs.

Jurisdictional profiles

A summary document that describes a jurisdiction's status and progress towards the introduction of sustainability-related disclosure requirements, including the adoption or other use of ISSB Standards. Jurisdictional profiles will be informed by bilateral discussions with individual jurisdictions and will describe specific jurisdictional approaches.

Market segments

Refers to the classification of publicly accountable entities, also known as issuers, filers or registrants, by jurisdictions based on domestic stock market segments. These classifications are determined by specific parameters such as the size of the entity, its cross-border and global orientation based on its shareholder base, the volume of traded securities and financial, liquidity, and corporate governance thresholds.

Most up-to-date, or current, status

Describes the jurisdiction’s sustainability-related disclosure requirements, including the adoption or other use of ISSB Standards, that entities in the jurisdiction are required or permitted to apply at the time the jurisdictional profile is published.

Publicly accountable entities

Entities whose securities are traded in a public market or entities in the process of issuing securities for trading in a public market (sometimes called listed entities or public entities) and entities that hold assets in a fiduciary capacity for a broad group of outsiders as one of their primary businesses (for example, banks, credit unions, insurance companies, securities brokers/dealers, mutual funds and investment banks) and have a significant weight in the jurisdiction, regardless of their ownership structure or listed status.

Roadmap

Detailed jurisdictional project plan with clear objectives and milestones for the introduction of sustainability-related disclosure requirements in the jurisdiction’s regulatory framework. A roadmap identifies the laws and regulations that will need to be enacted to introduce sustainability-related disclosure requirements, the entities that will be subject to the requirements, the date of application of the requirements and how the requirements will align with ISSB Standards.

Stated jurisdictional target

Describes the target that the jurisdiction aims to achieve for sustainability-related disclosure requirements. This target could reflect: (a) the final milestone in the jurisdictional roadmap towards the introduction of sustainability-related disclosure requirements, or (b) requirements that have already been introduced by law or regulation but application by entities will be required at a future date.

Transition adoption reliefs

Transition standard reliefs extended beyond the first annual reporting period.

Transition standard reliefs

Transition reliefs in IFRS S1 and IFRS S2, which are available only for the first annual reporting period, limited to: (a) ‘climate-first’ reporting; (b) the timing of reporting; (c) GHG Protocol; and (d) Scope 3 GHG emissions.