When the International Sustainability Standards Board (ISSB) was developing IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, it received feedback from stakeholders that the ISSB Standards should give more consideration to the range of capabilities and preparedness of companies around the world.
To make the ISSB Standards a truly global baseline of sustainability-related financial disclosures, the ISSB built in mechanisms to ensure that all companies, including smaller companies and those in developing markets, can apply them.
These proportionality mechanisms support the application of IFRS S1 and IFRS S2—they help companies with different levels of capability and preparedness to apply the ISSB Standards.
In this webcast, ISSB member Ndidi Nnoli-Edozien and ISSB technical staff Martine Beaulieu explain how the proportionality mechanisms support the application of IFRS S1 and IFRS S2. They cover what the proportionality mechanisms are and where they appear in IFRS S1 and IFRS S2.
Ndidi and Martine also provide examples of how companies should use the proportionality mechanisms to apply specific requirements in ISSB Standards.
The webcast is accompanied by a factsheet that provides an overview of the proportionality mechanisms and what is covered in the webcast.
Access the Standards to find out more about the requirements on proportionality mechanisms.
Part One—Introduction to proportionality mechanisms in the ISSB Standards
This part of the webcast explains why the ISSB chose to include proportionality mechanisms in the ISSB Standards.
Part Two—'All reasonable and supportable information that is available to the company at the reporting date without undue cost or effort'
This part of the webcast explains the proportionality mechanism that permits companies to disclose ‘all reasonable and supportable information that is available at the reporting date without undue cost or effort’ and covers examples of how the mechanism can be used to apply specific requirements in the ISSB Standards.
Part Three—'Commensurate with skills, capabilities and resources that are available to the company'
The final part of this webcast explains the proportionality mechanism that permits companies to disclose information ‘commensurate with the skills, capabilities and resources that are available to the company’ and covers examples of how the mechanism can be used to apply specific requirements in the ISSB Standards.
