ISSB (International Sustainability Standards Board)
Definition
The International Sustainability Standards Board (ISSB) was established by the IFRS Foundation to develop a global baseline of sustainability disclosure standards for the capital markets. Its inaugural standards, IFRS S1 (General Requirements) and IFRS S2 (Climate-related Disclosures), consolidate and build upon TCFD, SASB, and other frameworks. The ISSB aims to create consistency and comparability in sustainability reporting worldwide.
Why It Matters
ISSB standards are being adopted or referenced by jurisdictions globally, making them a critical framework for internationally operating companies. Their investor-focused approach complements the broader stakeholder orientation of standards like GRI and CSRD.
Related Terms
SASB (Sustainability Accounting Standards Board)
SASB provides industry-specific sustainability disclosure standards designed to help companies communicate financially material sustainability information to investors. Now part of the IFRS Foundation, SASB standards cover 77 industries across five dimensions: environment, social capital, human capital, business model, and leadership. They focus on the subset of ESG issues most likely to affect financial performance.
TCFD (Task Force on Climate-related Financial Disclosures)
The Task Force on Climate-related Financial Disclosures (TCFD) developed recommendations for companies to disclose climate-related financial information across four pillars: governance, strategy, risk management, and metrics/targets. Although the TCFD itself was disbanded in 2023 after its work was taken over by the ISSB, its framework remains influential. TCFD-aligned disclosure is now mandatory or recommended in many jurisdictions.
CSRD (Corporate Sustainability Reporting Directive)
The Corporate Sustainability Reporting Directive (CSRD) is EU legislation that significantly expands mandatory sustainability reporting requirements for companies operating in Europe. It introduces the European Sustainability Reporting Standards (ESRS) and requires double materiality assessments, third-party assurance, and digital tagging of reports. The CSRD applies to approximately 50,000 companies, including non-EU companies with significant EU operations.
GRI (Global Reporting Initiative)
The Global Reporting Initiative (GRI) is an independent international organisation that provides the world's most widely used standards for sustainability reporting. GRI Standards help organisations report on their economic, environmental, and social impacts in a structured, comparable way. The framework emphasises stakeholder inclusiveness and materiality.