The ISSB was established by the IFRS Foundation in 2021 to develop a global baseline of sustainability disclosure standards focused on information relevant to investors and other providers of capital. In June 2023, the ISSB issued its first two standards: 𝗜𝗙𝗥𝗦 𝗦𝟭: General Requirements for Disclosure of Sustainability-related Financial Information 𝗜𝗙𝗥𝗦 𝗦𝟮: Climate-related Disclosures Since their introduction, the standards have progressed from development into implementation across markets. According to the IFRS Foundation, more than 45 jurisdictions are now using ISSB Standards, while companies in 18 jurisdictions are expected to be issuing reports by 2027. Against this backdrop, the new five-year plan represents an important transition in the ISSB’s development, providing a structured pathway for resourcing its work through 2031.
The plan provides a pathway for the ISSB to:
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Funding committed for 2027–2031 from philanthropic, jurisdictional and other contributors will support the ISSB during this transition as adoption of its standards matures. This is significant because the effectiveness of global reporting standards depends not only on the quality of the standards themselves, but also on the institutional capacity to maintain, develop and support their implementation over time.
Alongside the funding plan, the IFRS Foundation announced plans to expand the ISSB’s multi-location operating model with a new office in Geneva, Switzerland, expected to open in 2027. The expansion reinforces the ISSB’s increasingly international role as jurisdictions move towards greater consistency in sustainability-related disclosures. The broader objective of ISSB Standards is to provide a global baseline for communicating sustainability-related risks and opportunities that could reasonably be expected to affect an organisation’s prospects, including its cash flows, access to finance or cost of capital. As climate and other sustainability factors increasingly influence business performance and financial decision-making, this connection between sustainability information and financial reporting is becoming more important.
The announcement does not introduce new reporting requirements for companies. However, it reinforces the growing relevance of ISSB Standards as more jurisdictions move towards a common baseline for sustainability-related financial disclosures. For organizations, this evolution means sustainability reporting is increasingly moving beyond a standalone disclosure exercise. Companies will need to consider how sustainability-related risks and opportunities can affect business strategy, financial performance, cash flows, access to finance, and cost of capital. Organizations preparing for this evolving landscape can focus on three priorities:
Taking these steps can help organizations move from reactive reporting towards a more structured, consistent, and decision-useful approach to sustainability information. As ISSB adoption expands, sustainability information is becoming increasingly connected with how companies communicate risk, resilience and long-term value to investors and other providers of capital.
As sustainability reporting evolves, companies need more than an understanding of disclosure requirements. They need experienced guidance to interpret emerging standards and translate them into practical reporting and business strategies. Cognitud brings together sustainability, climate and regulatory expertise, supported by experienced leaders and subject-matter specialists, to help organizations navigate this changing landscape. Our expertise spans reporting readiness, materiality assessment, sustainability data and performance analysis, regulatory developments and disclosure strategy, enabling businesses to understand the implications of ISSB Standards and align their approach with business priorities and stakeholder expectations. As ISSB adoption expands, Cognitud can help organizations move towards more credible, consistent and decision-useful sustainability disclosures, while strengthening the connection between sustainability information, business resilience and long-term value.
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Abhigyan Gupta
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It is a plan approved by the IFRS Foundation covering 2027 to 2031, designed to provide the ISSB with the resources needed for its standard-setting work, global implementation support, and international operations.
Companies in 18 jurisdictions are expected to be issuing reports by 2027, according to the IFRS Foundation information cited in the article.
No. IFRS S2 specifically focuses on climate-related disclosures, while IFRS S1 addresses broader sustainability-related financial information.
The ISSB is moving from initial seed funding towards a more sustainable, long-term funding model as adoption of its standards matures.
It involves establishing reliable processes for collecting, validating, and documenting sustainability-related information, supported by clear ownership and appropriate internal controls.
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