IASB
Develops IFRS Accounting Standards.
Section · Global standards · IFRS and the ISSB
IFRS
IFRS can refer to accounting or sustainability standards, so identify the board and standard before interpreting a requirement.
The word
What “IFRS” means for sustainability
IFRS can refer to accounting or sustainability standards, so identify the board and standard before interpreting a requirement.
Two independent boards
ISSB
Develops IFRS Sustainability Disclosure Standards.
IFRS Foundation
Provides the institutional framework for both boards.
Read the detailed guidance and evidence
The IFRS sustainability standards are two documents, IFRS S1 and IFRS S2, issued by the ISSB on 26 June 2023.
They are the global baseline the UK endorsed as UK SRS, and the text of both is free to read.
This section starts here and branches into each standard, the board, and the UK route.
“IFRS” is the IFRS Foundation’s brand, and it covers two sets of standards written by two boards.
The Foundation created the International Sustainability Standards Board in 2021, and it “operates alongside—but independently from—the IASB”.
So an IASB decision does not bind the ISSB, and a reference to “IFRS” alone is ambiguous until it names the standard.
The ISSB is covered on the ISSB guide; its standards are explained together on IFRS S1 and S2.
| IFRS Foundation board | Writes | For |
|---|---|---|
| IASB | IFRS Accounting Standards | Financial statements |
| ISSB (from 2021) | IFRS Sustainability Disclosure Standards | Sustainability-related financial disclosures |
What is in issue
The IFRS sustainability standards, and the SASB set beneath them
IFRS S1 sets general sustainability disclosure requirements and IFRS S2 adds climate-specific content.
S1 and S2 are in issueRequirements and evidence
Module 01 / 03
IFRS S1
Investor-focused sustainability-related financial information.
Module 02 / 03
IFRS S2
Climate risks, opportunities, resilience and metrics.
Module 03 / 03
2025 amendments
Targeted S2 emissions changes apply from 2027 periods, with early application permitted.
Read the detailed guidance and evidence
| Standard | What it does | Status | Our guide |
|---|---|---|---|
| IFRS S1 General Requirements | General requirements for all sustainability-related risks and opportunities: materiality, four areas, sources of guidance, location and timing | Effective 1 January 2024 | IFRS S1 |
| IFRS S2 Climate-related Disclosures | The climate topic: governance, strategy, scenario analysis, Scope 1–3 emissions, seven cross-industry metrics, targets | Effective 1 January 2024; December 2025 amendments from 1 January 2027 | IFRS S2 |
| SASB Standards | Industry-based disclosure topics and metrics, 77 industries in 11 sectors | Maintained by the ISSB | Frameworks |
The ISSB issued IFRS S1 and IFRS S2 on 26 June 2023, effective for annual reporting periods beginning on or after 1 January 2024.
Its only amendment since is to IFRS S2, issued in December 2025 and applying from 1 January 2027: greenhouse gas reliefs, a Category 15 limitation and a new financed-emissions subtotal.
The ISSB says it is responsible for the SASB Standards, which its own industry list puts at 77 industries across 11 sectors.
How the pair differs from the UK versions is on UK SRS against IFRS S1 and S2, and the materiality test they share on UK SRS S1 materiality.
Worked answer
Do you need IFRS accounts to use IFRS sustainability standards?
IFRS S1 allows its use alongside financial statements prepared under another generally accepted accounting framework; the accounting framework and the sustainability disclosure framework are distinct choices.
| Part of the example | Situation | Useful response |
|---|---|---|
| Financial statements | A fictional company prepares accounts using another applicable GAAP. | That fact alone does not prevent it applying IFRS S1 and S2. |
| Sustainability disclosures | The company chooses the IFRS sustainability framework. | Use the related reporting entity and connect the information to the accounts. |
| UK reporting obligation | The company checks whether a UK rule applies. | Read UK SRS and the relevant UK legal trigger rather than treating an IFRS choice as a UK exemption. |
This fictional example concerns framework selection, not a finding that the company’s eventual report complies with either accounting or sustainability standards.
AccountsA fictional decision trace
Module 01 / 03
Accounts
Identify the applicable GAAP.
Module 02 / 03
Standards
Identify the sustainability text being applied.
Module 03 / 03
Jurisdiction
Check which rule requires which output.
Primary texts
Where to read them free, and what else is published
The Foundation’s free HTML texts and Navigator provide direct access to the standards, with the document edition controlling the reference.
Read the issued textRequirements and evidence
Module 01 / 03
Edition
Check the masthead and amendment status.
Module 02 / 03
Requirement
Read the paragraph together with relevant application guidance.
Module 03 / 03
Support
Keep educational material distinct from the issued requirement.
Read the detailed guidance and evidence
The IFRS Foundation’s Sustainability Standards Navigator offers PDFs of the issued standards to registered users, and says some content may require premium access in future.
The HTML texts need no registration, which makes them the durable reference for a paragraph citation.
The Foundation also publishes educational material that does not change the requirements, such as its November 2024 guide to material information, gathered on its supporting materials page.
The IFRS Sustainability Disclosure Taxonomy is a tagging vocabulary for machine-readable reports; the Foundation says its proposed 2026 update “neither introduces new requirements nor affects a company’s compliance”.
What is moving
The ISSB work plan, as at 30 September 2026
The ISSB’s nature and taxonomy work follows a development process and should not be presented as new mandatory disclosure law.
A project is not an issued ruleRequirements and evidence
Module 01 / 03
Nature
The work plan concerns a proposed IFRS Practice Statement.
Module 02 / 03
Taxonomy
Digital tagging supports reporting rather than adding disclosure requirements.
Module 03 / 03
Consultation
Track exposure drafts, comments and final decisions separately.
Read the detailed guidance and evidence
On nature, the ISSB decided in April 2026 to propose requirements and guidance as an IFRS Practice Statement, and its work plan records permission to ballot an exposure draft in July 2026.
A Practice Statement is non-mandatory and changes no requirement in IFRS S1 or S2, though a jurisdiction may choose to require it.
The IFRS S2 page also lists active projects on the Industry-based Guidance and on enhancing the SASB Standards, so neither standard should be treated as fixed.
Human capital is a research project whose direction the ISSB had not decided at its July 2026 meeting.
The consequences for reporting are covered on climate scenario analysis and Scope 3 under UK SRS.
- 3 Nov 202101
ISSB formed at COP26
- 26 Jun 202302
IFRS S1 and S2 issued
- 1 Jan 202403
IFRS S1 and S2 effective
- Dec 202504
IFRS S2 greenhouse gas amendments
- Apr 202605
Nature: a Practice Statement, not a standard
- 28 Sep 202606
Taxonomy update comments closed
- Oct 202607
Nature exposure draft targeted
- 1 Jan 202708
IFRS S2 amendments apply
Into the UK
How an ISSB standard reaches the UK
New ISSB requirements do not automatically apply in the UK without the relevant endorsement and application decisions.
- 1
Assessment
The UK endorsement process evaluates the international standard.
- 2
Publication
The government issues the UK-endorsed text.
- 3
Application
The relevant regulator or legislation sets a reporting duty.
Read the detailed guidance and evidence
New or amended ISSB standards “would not automatically apply in the UK”, in the FRC’s words; each goes through endorsement first.
The endorsement framework gives the technical assessment to a Technical Advisory Committee and the policy questions to a Policy and Implementation Committee, with the Secretary of State issuing the standards.
IFRS S1 and S2 came through that route as UK SRS S1 and S2 on 25 February 2026, which the government’s guidance makes available for voluntary use.
The FCA’s final rules then require listed companies in UKLR 6, 14, 15, 16 and 22 to report against UK SRS on a comply-or-explain basis from accounting periods beginning on or after 1 January 2027, finalising the CP26/5 consultation.
The UK side is the UK SRS hub, what is UK SRS, the FCA and UK SRS, the UK SRS timeline, the UK SRS deadline and UK SRS compliance.
Assurance, where a company obtains it, is covered on ISSA (UK) 5000.
Reference index
The global standards, page by page
Use the individual guides for the standard’s requirements, the combined architecture or the UK reporting route.
Choose the question you needRequirements and evidence
Module 01 / 03
General requirements
S1 explains materiality, connected information and presentation.
Module 02 / 03
Climate
S2 explains climate risks, resilience, emissions and targets.
Module 03 / 03
UK application
UK SRS and FCA guides explain local text and reporting rules.
Read the detailed guidance and evidence
Frequently asked
IFRS sustainability standards: frequently asked
What are the IFRS sustainability standards?
The IFRS Sustainability Disclosure Standards are the standards issued by the International Sustainability Standards Board.
Two are in issue: IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, both issued on 26 June 2023 and effective for annual periods beginning on or after 1 January 2024.
The ISSB also maintains the SASB Standards, which the two standards refer to for industry-based topics and metrics.
Is IFRS the same as the ISSB?
No. IFRS is the IFRS Foundation's family of standards; the Foundation has two standard-setting boards.
The IASB writes the IFRS Accounting Standards for financial statements, and the ISSB — created in 2021 — writes the IFRS Sustainability Disclosure Standards.
The Foundation says the ISSB operates alongside but independently from the IASB.
Where can I download the ISSB standards?
The IFRS Foundation publishes the complete, paragraph-numbered text of IFRS S1 and IFRS S2 as free HTML that needs no sign-in, and the IFRS Sustainability Standards Navigator offers PDFs to registered users.
The Foundation warns that some Navigator content may require premium access in future, so the free HTML is the durable reference.
What is the ISSB working on?
Its work plan includes nature-related disclosures, which in April 2026 it decided to propose as an IFRS Practice Statement rather than a new standard, with permission to ballot an exposure draft given in July 2026.
Other active projects on the IFRS S2 page include amendments to the Industry-based Guidance and enhancements to the SASB Standards.
A proposed taxonomy update tracking the December 2025 IFRS S2 amendments closed for comment on 28 September 2026; the Foundation says it changes no requirement.
Do new ISSB standards apply automatically in the UK?
No. The FRC says any new or amended standards issued by the ISSB 'would not automatically apply in the UK' and would first go through the UK's endorsement process before being incorporated into UK SRS.
That is how IFRS S1 and S2 became UK SRS S1 and S2, published by the Department for Business and Trade on 25 February 2026.
Are IFRS sustainability standards mandatory in the UK?
Not as IFRS standards.
The UK versions, UK SRS S1 and S2, are voluntary for any entity.
Under the FCA's final rules (PS26/19, 30 September 2026), listed companies in UKLR 6, 14, 15, 16 and 22 must report against UK SRS on a comply-or-explain basis for accounting periods beginning on or after 1 January 2027.
Fictional example
Explain the financial relevance of the risk
A fictional business considers whether a climate risk could affect cash flows, financing access or the cost of capital.
A fictional risk disclosureRequirements and evidence
Module 01 / 03
Risk
Identify the exposure and relevant time horizons.
Module 02 / 03
Response
Explain management’s response and strategy.
Module 03 / 03
Evidence
Connect assumptions, financial effects and relevant metrics.
Read the detailed guidance and evidence
This fictional illustration is not an assessed IFRS-compliant disclosure.
Source control
Record the edition and reporting route
A reporting file should identify the edition used and distinguish the international effective date from its local legal application.
Avoid a version mismatchRequirements and evidence
Module 01 / 03
Document
Record the issued standard and amendments.
Module 02 / 03
Period
Identify the applicable accounting period.
Module 03 / 03
Jurisdiction
Record the local adoption or endorsement route.
Read the detailed guidance and evidence
This is an editorial version-control method.
Current work plan
A development project is a different status
The current work plan records a proposed Practice Statement and permission to ballot, not a third issued sustainability standard.
Nature remains a development topicRequirements and evidence
Module 01 / 03
Purpose
Respond to investor needs for nature-related information.
Module 02 / 03
Stage
Read the current exposure-draft milestone and board decisions.
Module 03 / 03
Existing baseline
S1 already covers material sustainability-related risks and opportunities.
Read the detailed guidance and evidence
Read the IFRS Foundation work plan for current project decisions and milestones.
Preparation
Map the disclosure to the requirement
A useful disclosure map links each requirement to the decision, evidence and report location that address it.
Connect a statement to its authorityRequirements and evidence
Module 01 / 03
Paragraph
Name the actual issued requirement.
Module 02 / 03
Decision
Explain the organisation’s relevant judgement.
Module 03 / 03
Disclosure
Identify where readers can find the resulting information.
Read the detailed guidance and evidence
This is an editorial review method, not a compliance certification.
Prepare the evidence
IFRS: from a requirement to a reporting pack
Use this preparation sequence alongside the detailed requirements on this page.
An editorial workflow, not a statutory schedule.
- Stage 0101
Applicable text
Identify the standards and edition the organisation is using.
- Stage 0202
Reporting boundary
Align the reporting entity, period and connected financial information.
- Stage 0303
Materiality assessment
Document which sustainability risks and opportunities affect the disclosure.
- Stage 0404
Four content areas
Build the governance, strategy, risk management and metrics evidence.
- Stage 0505
Methods and judgements
Explain the assumptions, estimates, uncertainty and comparative treatment.
- Stage 0606
Statement and approval
Check what the final report can accurately say about its compliance.
Read the applicable instrument: International Sustainability Standards Board — group page
A practical brief
An evidence pack, with a clear review trail
Ask for a pack that lets the next reviewer retrace the scope decision, follow the evidence and understand the limitations.
This describes a useful handover; it does not certify compliance or establish that a vendor or adviser delivers it.
Trace the answerScope → evidence → review
Module 01 / 04
Applicability record
Write down the entity, reporting route and relevant period, including why the route applies.
Module 02 / 04
Evidence register
Attach each reported figure or statement to its source, method, version and limitations.
Module 03 / 04
Review trail
Name the preparer, reviewer, open questions and decisions taken before publication.
Module 04 / 04
Usable handover
Retain the working files and unresolved actions so the next reporting cycle can reuse the evidence.
View the preparation diagram
- Prepare01
Create the traceable pack
Keep the input records, calculation files and narrative together.
- Challenge02
Resolve questions before publication
Record the assumptions challenged and any limitations still unresolved.
- Retain03
Make the next cycle reproducible
Keep the approved version and the actions carried forward.
Continue your research
Related guides, one question at a time
Sources
Primary sources
Every figure, date and status on this page traces to the instrument’s owner.
Secondary commentary is never the source for a number.
Checked against 20 sources fromIFRS FoundationFinancial Reporting CouncilDepartment for Business and TradeFinancial Conduct Authority
- IFRS FoundationInternational Sustainability Standards Board — group page
Formed 3 November 2021; IFRS S2 effective 1 January 2024.
- IFRS FoundationWho we are
The ISSB “operates alongside—but independently from—the IASB”.
- IFRS FoundationISSB issues IFRS S1 and IFRS S2 — issuance announcement, 26 June 2023
- IFRS FoundationIFRS Sustainability Standards Navigator
Registration gives the PDFs; the Foundation warns some content may later need premium access.
- IFRS FoundationIFRS S1 — full text, June 2023 (free HTML)
- IFRS FoundationIFRS S2 — full text, December 2025 (free HTML)
- IFRS FoundationISSB issues targeted amendments to IFRS S2, December 2025
- IFRS FoundationSASB Standards
“The ISSB is responsible for the SASB Standards.”
- IFRS FoundationSICS industry list, 10 October 2025 (PDF)
77 industries across 11 sectors.
- IFRS FoundationSustainability-related risks and opportunities and the disclosure of material information — educational material, November 2024
- IFRS FoundationSupporting materials for IFRS Sustainability Disclosure Standards
- IFRS FoundationIFRS Sustainability Disclosure Taxonomy
- IFRS FoundationISSB proposes update to the IFRS Sustainability Disclosure Taxonomy, 29 July 2026
“Neither introduces new requirements nor affects a company’s compliance with ISSB Standards.” Comments closed 28 September 2026.
- IFRS FoundationNature-related Disclosures — ISSB work plan
A Practice Statement; permission to ballot July 2026.
- Financial Reporting CouncilSustainability reporting developments: frequently asked questions
New ISSB standards “would not automatically apply in the UK”.
- Department for Business and TradeFramework for developing UK Sustainability Reporting Standards
Terms of reference for the TAC and the PIC.
- Department for Business and TradeUK SRS S1 and UK SRS S2, published 25 February 2026
- Department for Business and TradeUK Sustainability Reporting Standards — guidance
Voluntary for any entity.
- Financial Conduct AuthorityPS26/19: Aligning listed issuers' sustainability disclosures with international standards
Comply or explain across UK SRS from accounting periods beginning on or after 1 January 2027.
- Financial Conduct AuthorityCP26/5 — the consultation PS26/19 finalises
Continue reading
Read next
Start here
IFRS S1 and S2
How the pair interlocks, their effective dates against UK SRS, and who uses them.
The climate standard
IFRS S2, paragraph by paragraph
The paragraphs people look up, read at the provision.
The board
The ISSB
Who writes the standards, how many jurisdictions use them, and what that count means.