Compliance Briefing — June 26, 2023

Executive briefing: The International Sustainability Standards Board (ISSB) released IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures on June 26, 2023. Jurisdictions and regulators can now incorporate the standards into mandatory reporting frameworks from 2024.

Immediate compliance priorities

Gap assessment. Compare existing sustainability reporting (e.g., TCFD, SASB) against IFRS S1/S2 disclosure requirements to identify data and control gaps.
Data governance. Establish processes for collecting climate metrics (Scope 1, 2, 3 emissions) and sustainability risks/opportunities across the enterprise value chain.
Readiness planning. Align finance, sustainability, and audit teams on implementation timelines in jurisdictions signalling adoption.

Control alignment

Disclosure controls. Embed sustainability metrics into internal control frameworks akin to financial reporting.
Scenario analysis and resilience. Enhance methodologies for climate scenario analysis and transition plans referenced by IFRS S2.
Assurance preparation. Coordinate with assurance providers on evidence requirements for future limited or reasonable assurance engagements.

Enablement moves

Monitor adoption roadmaps from securities regulators and stock exchanges considering ISSB integration.
Leverage industry-specific SASB guidance, now consolidated under IFRS, to tailor metrics and disclosures.
Develop integrated reporting dashboards linking financial and sustainability KPIs for board oversight.

Sources

Zeph Tech assists issuers with ISSB alignment programmes, bridging data pipelines, assurance readiness, and investor reporting expectations.