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 remotely on 4 April 2023.
The ISSB met on 4 April 2023 to discuss further the transition reliefs to be provided in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information.
The ISSB tentatively decided to introduce a transition relief in IFRS S1 that would allow an entity to report on only climate-related risks and opportunities (as set out in IFRS S2 Climate-related Disclosures) in the first year it applies IFRS S1 and IFRS S2. The entity would be required to provide information about its other sustainability-related risks and opportunities in the second year it applies the two Standards.
This one-year transition relief would not change the effective date of IFRS S1. The ISSB tentatively decided in February 2023 to require that IFRS S1 be effective for annual reporting periods beginning on or after 1 January 2024. However, for an entity applying this transition relief in the first year it applies IFRS S1, the requirements in IFRS S1 would apply only insofar as they relate to the disclosure of climate-related financial information.
This transition relief would have no effect on the application of or requirements in IFRS S2.
The ISSB also tentatively decided that if an entity uses this transition relief, it:
All 14 ISSB members agreed with these decisions.
The ISSB will continue the balloting process and expects to issue the two Standards towards the end of the second quarter of 2023.