ISSB IFRS S1/S2
IFRS S1 General Requirements for Sustainability-related Financial Information; IFRS S2 Climate-related
Topic : ESG disclosure · Level : Sector-specific
Today
Effective since 2024; binding only where adopted. 45+ jurisdictions adopting, 22 finalised. S2 GHG amendments apply from 2027.
Summary
IFRS S1 and S2 are the ISSB's global baseline for sustainability and climate disclosure, effective since 2024 where adopted. Over 45 jurisdictions are adopting them. December 2025 amendments ease GHG rules from 2027.
Who is concerned
- Turnover
- not specified (set by each jurisdiction)
- Employees
- non précisé
- Listed company
- non précisé
- Sectors
- All sectors (SASB guidance)
- Triggering activities
- Jurisdiction mandates ISSB (HK, AU, JP, NG)
- Voluntary claim of compliance
- Extraterritorial reach
- No
Scope 3 disclosure pulls value-chain data from foreign suppliers of reporting entities.
- Examples
- HKEX-listed manufacturer
- Australian retailer sourcing from China
What the law requires
- Disclose material sustainability risks and opportunities (S1)
- Report climate governance, strategy, risk, targets (S2)
- Disclose Scope 1, 2 and 3 GHG emissions (Scope 3 after 1-year relief)
- Use scenario analysis proportionate to resources
Penalties
None from ISSB; set by adopting jurisdictions.
What this changes for a supplier in China
China's MOF basic standard is ISSB-based and HKEX applies S2-aligned climate rules. Buyers in ISSB markets send Scope 3 data requests to Chinese suppliers.
Expected evidence
- Scope 1-2 inventory (GHG Protocol)
- Product carbon footprint per SKU
- Climate risk exposure of sites
Tiers : Tier 1-2