New ISSB Standards and What They Mean for Australian Companies?

In June 2023, the International Sustainability Standards Board ("ISSB") released its inaugural sustainability standards, IFRS S1 and IFRS S2,¹ establishing a global common language for sustainability disclosure.

IFRS S1 and IFRS S2, collectively referred to as the "Standards", will drive a significant increase in ESG reporting by Australian companies. The Standards require mandatory ESG reporting requirements for Australia's largest listed and unlisted companies (more than 500 employees, AUD$500 million+ in revenues and more than AUD$1 billion+ in assets) and financial institutions with annual reporting periods beginning on or after 1 January 2024.² It is vital for organisations to fully understand the new requirements and modify existing approaches to ESG reporting and their strategy to be compliant.

With local jurisdiction-specific aspects still to be determined through public consultation on Australia’s climate-related financial disclosure, there are opportunities for Australian companies and financial institutions to contribute to decision-making around key determinants. These include implementation timeline, reporting entity size and greenhouse gas emissions accounting.

The following is a quick overview of the new Standards, answering the following questions. What do the Standards include? How is materiality approached? Is there a connection to financial reporting? What are the implications for Australian companies?

Click here to read the full article.