Individual jurisdictions will determine if application of the IFRS Sustainability Disclosure Standards is required or permitted as a basis for sustainability reporting, akin to the process for adopting IFRS Accounting Standards for financial reporting. Note that the IFRS Sustainability Disclosure standards can be applied irrespective of the accounting principles applied in the related financial statements.

In July 2023, the International Organization of Securities Commissions (IOSCO) announced its endorsement of the standards, and has called on its 130 member jurisdictions, regulating more than 95% of the world’s financial markets, to consider ways in which they might adopt, apply or otherwise be informed by the standards of the ISSB in their jurisdictions. Numerous jurisdictions have announced support for the standards or are in the process of adoption. For example, in October 2023, it was announced that the standards will be incorporated into the Brazilian regulatory framework, progressing from voluntary application in 2024 to mandatory application in 2026. We expect announcements around the world to continue to accelerate.

See the separate interactive publication [coming soon] for an overview of adoption status by jurisdiction.