The IFRS Foundation revealed today that 36 jurisdictions have adopted or otherwise used the IFRS Sustainability Disclosure Standards (ISSB Standards), including 17 that have finalized their approach to using the standards.
The announcement marks continued progress towards the expansion of ISSB-based sustainability requirements over the past few months, following a report in November 2024 that 30 jurisdictions were in moving towards using the standards, and a prior report in May 2024 citing over 20 jurisdictions.
Emmanuel Faber, ISSB Chair, said:
“We have seen new jurisdictions joining the initial cohort of ISSB adopters every month, with a total of 36 today.”
The IFRS Foundation’s International Sustainability Standards Board (ISSB) was launched in November 2021 at the COP26 climate conference, with the goal to develop IFRS Sustainability Disclosure Standards to provide investors with information about companies’ sustainability risks and opportunities. The IFRS released the inaugural general sustainability (IFRS S1) and climate (IFRS S2) reporting standards in June 2023. Following the release of the standards last year, IOSCO, the leading international policy forum and standards setter for securities regulators called on regulators to incorporate the standards into their sustainability reporting regulatory frameworks.
Alongside its update, the IFRS Foundation announced the publication of an initial set of 17 “jurisdictional profiles” and 16 “jurisdictional snapshots,” aimed at providing transparency and evidencing progress towards adoption of ISSB Standards. Profiles are published when a jurisdiction’s approach to sustainability reporting is finalized and no longer subject to consultation. The publications are aimed at showing how ISSB Standards are being incorporated into jurisdictions’ frameworks, and to help jurisdictions draw from the experience of other jurisdictions.
The 17 jurisdictions profiled include Australia, Bangladesh, Brazil, Chile, Ghana, Hong Kong SAR, Jordan, Kenya, Malaysia, Mexico, Nigeria, Pakistan, Sri Lanka, Chinese Taipei, Tanzania, Türkiye and Zambia. Of these, the IFRS Foundation said that 14 have set a target to fully adopt the ISSB standards, while two are adopting the standards’ climate requirements, and one is partially incorporating the standards.
Among the 16 jurisdictions covered by the snapshots, 12 have published standards fully aligned with ISSB Standards or designed to deliver outcomes functionally aligned with those resulting from the application of ISSB Standards, the IFRS Foundation said, with three proposing standards incorporating a significant portion of the ISSB standards, and one considering permitting the use of ISSB Standards. The IFRS Foundation said that it will publish profiles for these jurisdictions when they have finalized their decisions.
Faber said:
“The ISSB Standards are bringing clarity to investors on the risks and opportunities lying in value chains across time horizons in a rapidly changing world. A year ago, we committed to publishing detailed jurisdictional profiles describing adoption of our Standards to complement our Inaugural Jurisdictional Guide. The profiles provide a detailed current state-of-play to investors, banks and insurers who continue to struggle with the lack of appropriate, comparable and reliable information on these critical factors affecting business prospects.”
