The International Sustainability Standards Board (ISSB) has issued specific amendments to IFRS S2 Climate-related Disclosures, responding to widespread implementation feedback from preparers. The revisions modify greenhouse gas (GHG) emission disclosure requirements to alleviate practical complexities while maintaining investor-grade data quality.
Key impacts for accounting and finance teams include:
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Enhanced Guidance & Flexibility: The amendments provide clearer practical application guidance, particularly on Scope 3 emissions reporting, reducing interpretational variability.
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Alignment of Metrics: Three SASB Standards have been updated to ensure consistency in financed emissions metrics with IFRS S2, supporting sector-specific reporting.
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Effective Date: Applicable for reporting periods beginning on or after 1 January 2027, with early adoption permitted. This timeline allows entities to integrate changes within existing sustainability and financial reporting cycles.
Considerations:
Entities must assess gaps in current GHG measurement and data collection processes. Early adoption may streamline reporting but requires cross-functional coordination with finance, operations, and sustainability teams. The amendments aim to reduce disruption for jurisdictions embedding ISSB Standards into regulatory frameworks, aiding global alignment.
These updates signal the ISSB’s responsive approach to balancing robust disclosure with preparer feasibility, emphasizing the growing integration of climate metrics into mainstream financial reporting.
Source: ISSB, 12 December 2025.