A familiar structure
The structure of both Standards will look familiar, as they borrow the TCFD’s approach of dividing information across the four categories of governance, strategy, risk management and metrics and targets.
The climate-focussed Standard S2, is in fact remarkably similar to TCFD but with more granularity, meaning that listed UK reporters will find they already comply with many of the requirements.
Regional adoption
Time will tell how individual countries may adapt the Standards to local needs, or when they will adopt them. The UK government has committed to incorporating the Standards into its new Sustainability Disclosure Requirements (SDRs) but hasn’t yet given a date for these. The ISSB is initially planning for the Standards to be used from 2024, with in-scope companies publishing their first reports from 2025.
The ISSB also proposes ‘transition relief’ and a staged approach to adopting the Standards, recommending that the climate-focused S2 Standard, is adopted a year before the more general S1 Standard.
Companies who want to get ahead can start by mapping the Standards’ disclosure requirements against their current reporting to identify any gaps. More information is available at the ISSB knowledge hub.
If you would like advice on adopting the Standards or improving your reporting, we would love to hear from you.
