By applying ISSB Standards voluntarily—in the absence of regulatory requirements—companies can provide decision-useful, globally comparable sustainability-related disclosures to investors. And, increasingly, investors around the world are calling on companies to do so.
While meeting investor demand will be a key driver for many companies choosing to apply ISSB Standards voluntarily, as increasing numbers of jurisdictions take steps to introduce sustainability disclosure requirements—including through widespread use of ISSB Standards—the Standards also serve as a passport for companies to meet requirements globally.
To support companies, the IFRS Foundation has published Voluntarily applying ISSB Standards—A guide for preparers (Voluntary Application Guide).
The guide aims to support companies as they start to apply ISSB Standards voluntarily as well as helping them communicate their progress to investors.
The guide also highlights two elements of the Standards that are designed to support implementation for preparers:
- transition reliefs so that preparers can use a phased-in approach to the requirements. These transition reliefs include ‘climate-first’ reporting, the timing of reporting, comparative disclosures and reliefs around the disclosure of greenhouse gas emissions;
- proportionality mechanisms built into the ISSB Standards to provide adequate measures to address the range of capabilities and circumstances of companies.
Preparers starting from investor-orientated frameworks and standards that are already voluntarily applied by thousands of companies globally—such as the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations, SASB Standards, Climate Disclosure Standards Board (CDSB) materials or Integrated Reporting Framework—are already on the path towards compliance with IFRS S1 and IFRS S2.
Key elements of these voluntary frameworks and standards have been integrated into the ISSB Standards and the Voluntary Application Guide highlights the resources the IFRS Foundation has published to help companies navigate from these frameworks and standards to ISSB Standards.
Other resources to support voluntary application
The Voluntary Application Guide is the latest in a series of publications designed to support the implementation of IFRS S1 and IFRS S2. Other resources include those designed to support companies that choose or are required to use other standards, such as the European Sustainability Reporting Standards (ESRS) and the Global Reporting Initiative Standards (GRI Standards).
- When used in tandem with tools such as the ESRS—ISSB Standards Interoperability Guidance, companies can apply ISSB Standards to meet investor demand and regulatory requirements around the world.
- The IFRS Foundation is collaborating with GRI to deliver full direct interoperability, starting with GRI 101 Biodiversity Standard and ISSB’s project on Biodiversity, Ecosystems and Ecosystem Services. An initial resource to help companies applying both ISSB Standards and GRI Standards is Interoperability considerations for GHG emissions when applying GRI Standards and ISSB Standard.
The full range of educational materials are available under Application Support. Furthermore, the IFRS Foundation is working with organisations—such as CDP —to rationalise the disclosure landscape. ISSB’s climate standard is the foundational baseline for CDP’s climate disclosure platform.
Access the guide in English: Voluntarily applying ISSB Standards—A guide for preparers
Access the guide in Spanish: Aplicación voluntaria de las Normas ISSB—Una guía para los preparadores
