ISSB: new transition relief for first-time publication of sustainability-related information under IFRS

Keywords: Mazars, Thailand, Sustainability, ISSB, Sustainability Standards Board, IFRS S1 

9 June 2023 

This would permit entities to: 

• report only on climate-related risks and opportunities in the first year, as required by IFRS S2, Climate-related Disclosures; and  
• report on other sustainability-related risks and opportunities from the second year.  

Thus, only the climate-related requirements of IFRS S1 would be applicable in the first year of implementation. 

This transition relief would not change the effective date of the two standards, which has (tentatively) been set for annual reporting periods commencing on or after 1 January 2024.  

Furthermore, the Board members tentatively decided that an entity that elects to apply this transition relief: 

• will be required to disclose that fact; 
• will not be required to provide comparative information on sustainability-related disclosures in the first year that it reports these, in line with the previously agreed transition relief that the ISSB has already incorporated into IFRS S1. However, the ISSB clarified that comparative information on climate-related disclosures will be required from the second year. 

The final stage is the formal vote of the Board on the two draft standards. This is likely to take place imminently, with a view to publishing the final standards by end of June.