Global-ISSB

Here's a breakdown of each standard:

IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information

Provides a framework for companies to disclose material sustainability-related risks and opportunities that could affect their financial prospects.
Requires companies to use industry-specific Sustainability Accounting Standards Board (SASB) Standards (unless superseded by future ISSB standards) to report beyond climate-related information.

Defines the information companies need to disclose, including:

Nature and extent of sustainability-related risks and opportunities.
Management approach to these risks and opportunities.
Metrics and targets used to assess performance.

IFRS S2: Climate-related Disclosures

Builds on the foundation of IFRS S1 by providing specific requirements for disclosing climate-related information.
Incorporates the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Requires disclosure on:

Governance of climate-related issues.
Strategy for managing climate risks and opportunities.
Risk management practices.
Metrics and targets for climate performance.

Provides a framework for companies to disclose material sustainability-related risks and opportunities that could affect their financial prospects.
Requires companies to use industry-specific Sustainability Accounting Standards Board (SASB) Standards (unless superseded by future ISSB standards) to report beyond climate-related information.

Defines the information companies need to disclose, including:

Nature and extent of sustainability-related risks and opportunities.
Management approach to these risks and opportunities.
Metrics and targets used to assess performance.

Builds on the foundation of IFRS S1 by providing specific requirements for disclosing climate-related information.
Incorporates the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Requires disclosure on:

Governance of climate-related issues.
Strategy for managing climate risks and opportunities.
Risk management practices.
Metrics and targets for climate performance.

Significance of IFRS S1 and S2

These standards are a major step towards standardising sustainability reporting worldwide. They can benefit investors and other stakeholders by providing comparable and reliable information about companies' sustainability performance. Companies are required to apply IFRS S1 and S2 for reporting periods beginning on or after January 1, 2024.