The ISSB standards are the sustainability disclosure standards issued by the International Sustainability Standards Board. The ISSB sits inside the IFRS Foundation, the same organization that oversees IFRS Accounting Standards. Its first two standards, IFRS S1 and IFRS S2, were issued in June 2023.
The sections below cover who the ISSB is, the full list of standards and supporting material it has published, where the standards apply in 2026, and what changed in 2025 and 2026. They also show how to find your way through the ISSB material, and what it asks of insurers, banks and pension funds on physical climate risk. For the paragraph-level requirements of IFRS S1 and S2, see our guide to what IFRS S1 and S2 require.
Who the ISSB Is and How It Sets Standards
The International Sustainability Standards Board (ISSB) is a standard-setting board of the IFRS Foundation. The Foundation’s Trustees announced it on 3 November 2021 at COP26 in Glasgow. Its job is to set a global baseline of sustainability disclosures for investors, lenders and other creditors.
Before the ISSB, companies reported against several overlapping voluntary frameworks. The ISSB builds on four of them: the TCFD recommendations, the Climate Disclosure Standards Board (CDSB) framework, the Integrated Reporting Framework and the SASB Standards. The IFRS Foundation took over CDSB in January 2022 and the Value Reporting Foundation, home of the SASB Standards and the Integrated Reporting Framework, in August 2022. The TCFD disbanded in October 2023, and the IFRS Foundation took over monitoring of company climate disclosures from 2024.
The International Organization of Securities Commissions (IOSCO) endorsed IFRS S1 and S2 on 25 July 2023. It called on its 130 member jurisdictions, which regulate more than 95% of the world’s securities markets, to consider how to use them. The ISSB Standards become mandatory only where a jurisdiction writes them into its own rules.
The ISSB is chaired by Emmanuel Faber. It has a presence in locations including Beijing, Frankfurt, Montreal and Tokyo. In August 2026 the IFRS Foundation Trustees announced a new office in Geneva, opening during 2027, to serve as the ISSB’s seat. They also plan to reduce the board gradually to 10 members from 2028.
ISSB Timeline From 2021 to 2026
| Date | Event |
|---|---|
| 3 Nov 2021 | IFRS Foundation Trustees announce the ISSB at COP26 |
| 31 Jan 2022 | CDSB consolidated into the IFRS Foundation |
| 1 Aug 2022 | Value Reporting Foundation (SASB Standards, Integrated Reporting Framework) consolidated |
| 26 Jun 2023 | IFRS S1 and IFRS S2 issued, effective for periods beginning on or after 1 Jan 2024 |
| 25 Jul 2023 | IOSCO endorses IFRS S1 and IFRS S2 |
| Oct 2023 | TCFD disbands; IFRS Foundation monitors company progress from 2024 |
| Dec 2023 | ISSB amends the SASB Standards to improve international applicability |
| Dec 2025 | Targeted amendments to IFRS S2 issued, effective 1 Jan 2027 |
| Apr 2026 | ISSB agrees to propose nature-related disclosure requirements |
| Aug 2026 | Trustees announce a Geneva seat for the ISSB from 2027 |
Sample Climate Risk Assessment
See a full climate risk assessment, end to end
We’ll email you a complete worked example for a manufacturing site: 12 hazards, multiple scenarios, and value-at-risk out to 2050. It shows what a full climate risk assessment output looks like.
The Full List of ISSB Standards and Materials
The ISSB has issued two standards. Around them sits a larger body of material that companies are expected to use: industry guidance, SASB Standards, educational material and implementation support. The table lists what exists as of October 2026.
| Name | Issued | What it is | Status (Oct 2026) |
|---|---|---|---|
| IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information | 26 Jun 2023 | Core requirements for all sustainability-related risks and opportunities | In force where adopted; effective 1 Jan 2024 |
| IFRS S2 Climate-related Disclosures | 26 Jun 2023 | Climate-specific requirements, built on S1 and the TCFD structure | In force where adopted; effective 1 Jan 2024 |
| Amendments to Greenhouse Gas Emissions Disclosures (Amendments to IFRS S2) | 11 Dec 2025 | Targeted reliefs and clarifications on emissions disclosures | Effective 1 Jan 2027; early application permitted |
| Industry-based Guidance on Implementing IFRS S2 | Jun 2023 | Industry disclosure topics and metrics derived from the SASB Standards; S2 Paras 12 and 32 require entities to refer to it and consider it | Current; amendments for 12 industries in consultation |
| SASB Standards | Under the IFRS Foundation since Aug 2022; amended Dec 2023 | 77 industry standards; the main source of guidance under IFRS S1 for topics beyond climate | Enhancement project underway |
| Educational material | 2023 onward | Non-mandatory explainers, for example on anticipated financial effects (Aug 2025), using industry-based guidance (Jul 2025), applying IFRS S1 when reporting only on climate (Jan 2025), and a webcast and factsheet on climate resilience and scenario analysis (Mar 2026) | Growing library |
| Comparison of IFRS S2 with the TCFD recommendations | 2023; updated Feb 2026 | Maps each TCFD recommendation to IFRS S2 | Current |
| ESRS and ISSB Standards interoperability guidance | May 2024 | Joint guidance with EFRAG on reporting under both | Current |
| Transition Implementation Group (TIG) | Established by the ISSB | Public forum that discusses implementation questions from companies | Met Nov 2025 and Mar 2026 |
| ISSB staff papers and meeting updates | Monthly | Agenda papers behind each board decision, and a monthly “ISSB Update” | Public on ifrs.org |
| IFRS Sustainability Disclosure Taxonomy | 2023 onward | Digital tagging for ISSB disclosures | Update proposed Jul 2026; comments to 28 Sep 2026 |
| Jurisdictional Guide and jurisdictional profiles | Guide May 2024; profiles from Jun 2025 | How jurisdictions adopt the standards, and a verified profile for each one that has | 23 profiles and 13 snapshots (24 Sep 2026) |
What IFRS S1 and IFRS S2 Require, in Brief
IFRS S1 sets the general requirements for disclosing sustainability-related risks and opportunities that could affect a company’s cash flows, access to finance or cost of capital. IFRS S2 adds the climate requirements. Both organize disclosures around the four TCFD content areas: governance, strategy, risk management, and metrics and targets.
On physical climate risk, two paragraphs carry most of the weight. Paragraph 22 requires climate-related scenario analysis to assess resilience, scaled to the company’s circumstances. Paragraph 29(c) requires the amount and percentage of assets or business activities vulnerable to climate-related physical risks. Our guide to what IFRS S1 and S2 require covers each paragraph in detail.
Platforms like Continuuiti assess 12 climate hazards across three SSP scenarios (SSP1-2.6, SSP2-4.5 and SSP5-8.5) and four time horizons, providing the structured hazard data and flood damage estimates that feed Paragraph 22 scenario analysis and the Paragraph 29(c) asset vulnerability metric.
Countries That Have Adopted the ISSB Standards in 2026
More than 45 jurisdictions are using the ISSB Standards or taking steps to introduce them, according to the IFRS Foundation in August 2026. By 2027, companies in 18 jurisdictions will be issuing ISSB-based reports. Most jurisdictions phase the requirements in by company size, and many start with climate only. The table shows the status in selected markets as of October 2026.
| Jurisdiction | Local standard | Status | Who and when |
|---|---|---|---|
| Australia | AASB S2 (AASB S1 is voluntary) | Mandatory, phased | Group 1 from periods beginning 1 Jan 2025; Group 2 from 1 Jul 2026; Group 3 from 1 Jul 2027 |
| Japan | SSBJ Standards | Mandatory, phased | Prime Market companies by market cap: ¥3 trillion+ from periods ending Mar 2027, ¥1 trillion+ from Mar 2028, ¥500 billion+ from Mar 2029 |
| Singapore | SGX rules on IFRS S2 climate requirements | Mandatory, phased | STI constituents from FY2025; other listed issuers from FY2028 (market cap S$1bn+) or FY2030; large non-listed from FY2030 |
| Hong Kong SAR | HKEX climate requirements; HKFRS Sustainability Disclosure Standards | Comply or explain, then mandatory | Main Board comply or explain from 1 Jan 2025; Hang Seng Composite LargeCap mandatory from 1 Jan 2026 |
| Brazil | CBPS 01 and 02 (based on IFRS S1 and S2) | Voluntary for listed companies, with an explanation required from 2027 | CVM Resolution 244 (29 May 2026) removed the mandatory start for listed companies that had applied from fiscal years beginning 1 Jan 2026. From 1 Jan 2027, a listed company that does not file a report must explain why in a market announcement. Separate central bank rules for financial institutions are outside this resolution |
| Malaysia | IFRS S1 and S2 | Mandatory, phased | Main Market issuers with market cap of MYR2 billion or more: climate-first from 1 Jan 2025, full S1 and S2 from 1 Jan 2027 |
| Türkiye | TSRS 1 and 2 | Mandatory | Listed entities, financial institutions and large companies from 1 Jan 2024 |
| Mexico | IFRS S1 and S2 as issued | Mandatory | Issuers other than financial institutions, first reports in 2026 for FY2025 |
| Chile | IFRS S1 and S2 as issued | Mandatory from 2027 | Periods starting in 2027, reported in 2028 (one-year extension granted Jul 2026) |
| Nigeria | IFRS S1 and S2 | Permitted now; mandatory later | Public interest entities from 1 Jan 2028; SMEs from 1 Jan 2030 |
| United Kingdom | UK SRS S1 and S2 | Comply or explain for listed companies | UK SRS published 25 Feb 2026. FCA final rules (PS26/19, 30 Sep 2026) apply to periods from 1 Jan 2027, first reports 2028; 1-year Scope 3 relief and 2-year non-climate S1 relief |
| Canada | CSDS 1 and 2 | Voluntary | CSSB standards issued Dec 2024; securities regulators paused their rule in Apr 2025 |
The IFRS Foundation publishes a profile for each jurisdiction that has finalized its approach, with a short snapshot for those still in progress. Check the profile for your jurisdiction before relying on any summary, including this one.
Transition Reliefs in IFRS S1 and IFRS S2
Both standards give first-time reporters four reliefs in their first year. A company can report on climate only, as long as it says it is doing so. It can publish its sustainability disclosures after its financial statements: with its next half-year report, or within nine months of year-end if it does not publish one. It does not need comparative figures for earlier periods. It can also leave out Scope 3 emissions in the first year.
Jurisdictions can change these reliefs. Japan gives two years of timing relief, and Türkiye gave a second year of Scope 3 relief.
ISSB Updates in 2025 and 2026
The ISSB has not issued a new standard since June 2023. Its work in 2025 and 2026 has focused on helping companies apply IFRS S1 and S2, improving the SASB Standards, and preparing proposals on nature.
Targeted amendments to IFRS S2 (December 2025). The ISSB issued targeted amendments to the emissions disclosure requirements in IFRS S2, in response to problems companies raised in their first years of reporting. They take effect for periods beginning on or after 1 January 2027, and companies can apply them early. A proposed update to the ISSB’s digital taxonomy followed in July 2026.
SASB Standards enhancements (2025 to 2026). The ISSB is updating the SASB Standards in stages. It consulted on nine industries in 2025 and on three more (Agricultural Products; Meat, Poultry and Dairy; and Electric Utilities and Power Generators) until 24 July 2026. The proposals include matching changes to the Industry-based Guidance on Implementing IFRS S2. In July 2026 the ISSB chose the six Technology and Communications industries as the next group.
Nature-related disclosures (2026). In April 2026 the ISSB agreed to propose nature-related requirements as an IFRS Practice Statement that works alongside IFRS S1, drawing on the TNFD framework. In July 2026 it approved the balloting of an exposure draft with a 120-day comment period.
New educational material. The ISSB published guidance on anticipated financial effects (August 2025), a webcast and factsheet on climate resilience and scenario analysis (March 2026), and an updated comparison of IFRS S2 with the TCFD recommendations (February 2026).
Research. The ISSB is also researching human capital disclosures.
Governance. In August 2026 the IFRS Foundation Trustees announced a Geneva office for the ISSB from 2027 and a gradual reduction of the board to 10 members from 2028. They are consulting on the needed Constitution changes until 16 November 2026.
How to Apply the ISSB Standards
1. Find out which version applies to you. Most companies report under a local version of the standards, such as AASB S2 in Australia, the SSBJ Standards in Japan or UK SRS in the United Kingdom. Local versions can change scope, reliefs and dates. The IFRS Foundation’s jurisdictional profiles summarize each one.
2. Check which reliefs you can use. First-year reporters can use the transition reliefs above, and some jurisdictions extend them. Decide early whether you will report on climate only in year one.
3. Read IFRS S1 and IFRS S2 together. IFRS S2 sets the climate requirements, and IFRS S1 sets the rules that sit under them, including materiality, reporting entity and timing. The ISSB’s guide on applying IFRS S1 when reporting only on climate explains how the two fit.
4. Use the industry-based guidance. IFRS S2 requires companies to refer to and consider the Industry-based Guidance on Implementing IFRS S2 when identifying climate risks and choosing industry metrics. For topics beyond climate, IFRS S1 points to the SASB Standards.
5. Use the educational material for the hard parts. The ISSB has published material on scenario analysis, anticipated financial effects and materiality. These are areas many first-year reports found difficult.
6. Watch the TIG and the work plan. The Transition Implementation Group discusses questions raised by companies, and its meeting papers show how the ISSB reads contested points. The work plan shows which amendments are coming.
Where to Download the ISSB Standards
The IFRS Foundation publishes IFRS S1, IFRS S2, the accompanying guidance and the Industry-based Guidance through the IFRS Sustainability Standards Navigator on ifrs.org. HTML and PDF files are currently free to registered users. Companies can use the standards for their own disclosures without charge; building them into a product or service needs a licence. Jurisdictional versions, such as AASB S2 or UK SRS, are published by the local standard setter or government.
ISSB Standards for Financial Institutions: Insurers, Banks and Pension Funds
IFRS S2 applies to financial institutions in the same way as to any other company. The cross-industry physical risk metric in Paragraph 29(c) still applies: the amount and percentage of assets or business activities vulnerable to climate-related physical risks. For a lender or investor, the assets in question are largely loans, investments and insured risks. The Industry-based Guidance then adds sector detail.
Insurers. The Insurance volume of the guidance has a Physical Risk Exposure topic with three metrics. Insurers are asked for the probable maximum loss of insured products from weather-related natural catastrophes (FN-IN-450a.1). They are also asked for losses from insurance pay-outs, split between modelled and non-modelled natural catastrophes, by event type and region (FN-IN-450a.2). The third metric describes how environmental risks feed into underwriting and into entity-level risk and capital management (FN-IN-450a.3).
Mortgage lenders. The Mortgage Finance volume asks for the number and value of mortgage loans in 100-year flood zones (FN-MF-450a.1). It also asks for expected loss and loss given default from weather-related natural catastrophes, by region (FN-MF-450a.2), and how climate risk enters origination and underwriting (FN-MF-450a.3).
Commercial banks. The Commercial Banks volume has no physical-risk metric. It asks banks to describe how they bring environmental, social and governance factors into credit analysis and credit loss estimates, and whether they model trends such as climate change at the portfolio level (FN-CB-410a.2). For banks, the physical-risk disclosure therefore comes mainly from Paragraphs 29(c) and 22.
Asset managers and pension funds. The Asset Management and Custody Activities volume asks for a description of how environmental, social and governance factors enter investment processes (FN-AC-410a.2). The guidance has no separate volume for pension funds, so a fund that reports under the ISSB Standards applies the cross-industry requirements to its portfolio. Whether it must report depends on the jurisdiction. In Australia, for example, superannuation funds with A$5 billion or more in assets fall into the second reporting group, which started with periods beginning on 1 July 2026.
ISSB vs TCFD: How IFRS S2 Builds on the TCFD
The TCFD recommendations of 2017 are the base the ISSB built on. IFRS S2 keeps the TCFD’s four content areas and adds specific requirements, including industry-based metrics and the Paragraph 29(c) physical risk metric. See our TCFD vs ISSB comparison for a point-by-point breakdown.
ISSB vs CSRD: Investor Focus and Double Materiality
The ISSB Standards focus on information that matters to investors. The EU’s CSRD, reported through the European Sustainability Reporting Standards (ESRS), also covers a company’s impacts on people and the environment. The IFRS Foundation and EFRAG published joint interoperability guidance in May 2024 to help companies that report under both. Our CSRD vs ISSB comparison covers the differences in scope, materiality and timing.
Frequently Asked Questions
What is the ISSB standard?
The ISSB standards are the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board. There are two: IFRS S1, which covers general sustainability-related disclosures, and IFRS S2, which covers climate. Both were issued in June 2023 and are supported by industry-based guidance, the SASB Standards and educational material.
When was the ISSB founded?
The IFRS Foundation Trustees announced the ISSB on 3 November 2021 at COP26 in Glasgow. It issued its first two standards, IFRS S1 and IFRS S2, on 26 June 2023.
What country has adopted the ISSB standards?
More than 45 jurisdictions are using the ISSB Standards or taking steps to introduce them, according to the IFRS Foundation in August 2026. Mandatory reporting has started in markets including Australia, Hong Kong, Malaysia, Mexico, Singapore and Türkiye. Japan’s largest listed companies follow from periods ending March 2027.
What are the new IFRS Standards in 2026?
The ISSB has not issued a new standard in 2026. The latest change is a set of targeted amendments to IFRS S2, issued in December 2025 and effective from 1 January 2027. In 2026 the ISSB is updating the SASB Standards and in July 2026 approved balloting of an exposure draft on nature-related disclosures, with a 120-day comment period.
Are ISSB standards mandatory?
Only where a jurisdiction requires them. The ISSB sets the standards, and each regulator decides who must use them and from when. In the UK, for example, listed companies apply UK SRS on a comply-or-explain basis for periods starting on or after 1 January 2027, and other companies can use it voluntarily.
Is ISSB replacing TCFD?
Yes, in practice. The TCFD disbanded in October 2023 after the ISSB issued its standards, and the IFRS Foundation took over monitoring of company climate disclosures from 2024. According to the IFRS Foundation, the requirements in IFRS S2 integrate, and are consistent with, the TCFD’s four core recommendations and 11 recommended disclosures.
Free Climate Risk Report
Run a free climate risk assessment report
12 hazards across multiple scenarios and four time horizons, with loss figures for any location. Start free, no call required.
Conclusion
The ISSB standards are now the reference point for investor-focused sustainability reporting. The body of material around IFRS S1 and S2 keeps growing: amended emissions requirements, updated SASB Standards, and a proposed Practice Statement on nature-related disclosures, approved for balloting in July 2026. For most companies the practical question is which local version applies to them and from when. For physical climate risk, the answer runs through Paragraph 22 scenario analysis and the Paragraph 29(c) asset vulnerability metric, whichever version a jurisdiction adopts.
