Europe – The International Sustainability Standards Board (ISSB) decided that its initial two IFRS Sustainability Disclosure Standards S1 and S2 will become effective from January 2024. The IFRS S1 draft contains general requirements for the disclosure of sustainability-related financial information along an entity's entire value chain, while the IFRS S2 draft specifies the requirements for the presentation of information that enables investors to assess the impact of climate-related risks and opportunities on an enterprise value. The ISSB finalized the technical content of its first IFRS Sustainability Disclosure Standards on February 16, 2023, taking into account feedback it received during the consultation process last year. During the meeting in Montreal, the ISSB unanimously voted to enter the formal drafting, review, and approval process for the standards.
NEXT STEP: The standards are expected to be released at the end of Q2 2023.
Source: IFRS Foundation