The International Sustainability Standards Board (ISSB), part of the IFRS Foundation, sets global sustainability reporting standards.
By incorporating TCFD recommendations and SASB standards, the ISSB has created a unified baseline for climate and sustainability disclosures.
The initial standards, IFRS S1 and S2, require sustainability risks to be reported with the same rigor as financial data. This ensures capital markets receive consistent, comparable, and transparent information to support decisions on a company’s long-term resilience.
A: The ISSB aims to create a global baseline for sustainability disclosures. It ensures ESG information is reported consistently and rigorously, allowing investors to compare corporate resilience worldwide.
The ISSB transforms TCFD from a voluntary framework into a mandatory accounting standard. Companies already following TCFD will find the transition straightforward, but should prepare for more detailed data requirements.