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This ISSB Update highlights preliminary decisions of the International Sustainability Standards Board (ISSB). Projects affected by these decisions can be found on the work plan. The ISSB's final decisions on IFRS® Sustainability Disclosure Standards are formally balloted as set out in the IFRS Foundation's Due Process Handbook.

The ISSB met on 20–21 November 2024.

Contents

Research and standard-setting

Applying Standards

Research and standard-setting

Biodiversity, Ecosystems and Ecosystem Services (Agenda Paper 3)

The ISSB met on 21 November 2024 to receive an update on this research project. The update covered the staff’s preliminary findings relating to:

  • evidence of investor interest in information about risks and opportunities related to biodiversity, ecosystems and ecosystem services;
  • evidence of how these risks and opportunities affect entities’ prospects; and
  • other disclosure standards and frameworks.

The ISSB was not asked to make any decisions.

Next step

The ISSB will receive further updates on this research project. 

Human Capital (Agenda Paper 4)

The ISSB met on 20 November 2024 to receive an update on this research project. The update covered the staff’s preliminary findings relating to other disclosure standards and frameworks.

The ISSB was not asked to make any decisions.

Next step

The ISSB will receive additional updates on this research project in the coming months.

Applying Standards

Supporting the Implementation of IFRS S1 and IFRS S2 (Agenda Paper 9)

The ISSB met on 20 November 2024 to discuss supporting the implementation of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.

Implications of amending IFRS S1 or IFRS S2—Risks and benefits (Agenda Paper 9A)

The ISSB discussed the implications of amending IFRS S1 or IFRS S2 in response to stakeholder feedback on application challenges arising from implementation.

The ISSB was not asked to make any decisions. 

Criteria for evaluating potential amendments to IFRS S1 or IFRS S2 (Agenda Paper 9B)

The ISSB discussed criteria for evaluating potential amendments to IFRS S1 or IFRS S2 in response to stakeholder feedback on application challenges arising from implementation. The ISSB decided that potential amendments would:

  1. be considered only if the ISSB identifies a demonstrated need, after it has explored all other options, to respond to pervasive application challenges arising from implementation, including concerns related to diversity in practice.
  2. not result in a significant loss of useful information, including significant reduction of the qualitative characteristics of useful sustainability-related financial information, compared with that provided by entities applying the issued requirements in IFRS S1 and IFRS S2.
  3. not unduly disrupt entities’ processes for implementing or jurisdictional processes for adopting or using IFRS S1 and IFRS S2. The ISSB would balance the need for amendments with the potential disruption they could cause. The ISSB would seek to avoid amendments that, compared to the issued requirements, would:
    1. reduce interoperability between the IFRS Sustainability Disclosure Standards and either the European Sustainability Reporting Standards or the GRI Standards.
    2. reduce connectivity between the IFRS Sustainability Disclosure Standards and the IFRS Accounting Standards.
    3. increase the complexity of applying the requirements in IFRS S1 or IFRS S2, reducing the proportionality of the Standards.

The ISSB would use these criteria to evaluate whether to propose amendments to the Standards. However, the ISSB would also consider other relevant factors in deciding whether and how to propose amendments.

All 14 ISSB members agreed with this decision.

Summary of the Transition Implementation Group on IFRS S1 and IFRS S2 meeting held on 19 September 2024 (Agenda Paper 9C)

The ISSB received an update on the September 2024 meeting of the Transition Implementation Group on IFRS S1 and IFRS S2 (TIG).

The ISSB was not asked to make any decisions.

Implementation challenges and concerns related to IFRS S2 (Agenda Paper 9D)

The ISSB received an overview of the application challenges arising from the implementation of IFRS S2 that were discussed at the September 2024 TIG meeting. The staff referred these challenges to the ISSB for further consideration. The ISSB discussed potential amendments it could consider to respond to these challenges.

The ISSB was not asked to make any decisions.

Next step

The ISSB will further consider the potential amendments and how to respond to these application challenges arising from implementation.