International Financial Reporting Standards (IFRS) Sustainability Standards
IFRS Sustainability Standards issued by the International Sustainability Standards Board (ISSB):
- The first two IFRS Sustainability Standards were issued on June 26, 2023, by the ISSB, with an effective start date of January 1, 2024:
These standards form a global baseline for businesses to use in their sustainability reporting.
Who’s impacted?
Local jurisdictional authorities will decide as to if and when these standards are adopted. Refer to “What do Canadian CPAs need to know” below for Canadian implications.
The International Organization of Securities Commissions (IOSCO), which represents 95% of the world’s securities markets, endorsed the IFRS Sustainability Standards, encouraging its member commissions to adopt the standards in their respective jurisdictions.
What’s the latest?
- On April 28, 2025, in response to market feedback, the ISSB published an Exposure Draft proposing targeted amendments to IFRS S2 Climate-related Disclosures that would ease application of requirements related to the disclosure of greenhouse gas. The comment period closes on June 27, 2025.
- In September 2024, the IFRS Foundation published Voluntarily applying ISSB Standards—A guide for preparers. The guide aims to encourage companies to start using ISSB Standards and help companies communicate to investors their progress towards applying ISSB Standards voluntarily. Learn more about the guide and other materials from the IFRS Foundation designed to support the implementation of IFRS S1 and IFRS S2.
What do Canadian CPAs need to know?
The IFRS Sustainability Standards as issued by the ISSB are not yet mandatory in Canada.
However, the Canadian Sustainability Standards Board (CSSB) issued their inaugural Canadian Sustainability Disclosure Standards (CSDS), based on the IFRS Sustainability Standards, on March 13, 2024. Refer below for more information.
Where can I learn more?
For more information, please refer to our At a Glance: Sustainability Reporting Standards and Regulations and related FAQs.
You can also refer to the ISSB website for:
- IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information
- IFRS S2: Climate-related Disclosures
- Sustainability Knowledge Hub - Preparers' guide to the IFRS Sustainability Disclosure Standards
- Exposure Draft: Amendments to Greenhouse Gas Emissions Disclosures Proposed amendments to IFRS S2