ISSB IFRS S1/S2 amendments & global standards evolution
Key Questions
Which jurisdictions have adopted or aligned with ISSB IFRS S1/S2 standards?
ISSB S2 has been adopted or aligned in 42 jurisdictions, with explicit Scope 1-3 requirements in the UK SRS and AU AASB S2. South Korea has also set a phased mandatory path aligned with ISSB, deferring Scope 3.
What updates are planned for the GHG Protocol and ISSB nature-related disclosures?
GHG Protocol Scope 3 revisions are scheduled for 2026 alongside new ISSB nature-related disclosures that broaden focus to biodiversity and impacts. IFRS S2 amendments from May 2026 confirm ongoing financial sector commitment.
How are EBA guidelines embedding climate risk into prudential requirements?
EBA guidelines will incorporate climate risk into 2027 stress tests and shift ESG from reporting into core prudential risk management. This reinforces the financial materiality of granular carbon data for banks and finance teams.
What SAP enhancements support IFRS S1/S2 implementation?
SAP added IFRS S1/S2 support in its Sustainability Control Tower in July 2026, covering 24 quantitative and 57 qualitative metrics with ESRS interoperability. TCFD Reporting 2026 guides help finance teams bridge to IFRS S2 requirements.
How does ESRS-ISSB divergence affect equivalence processes?
Debevoise analysis confirms the equivalence process remains undefined, with double materiality as the core difference. Companies must therefore maintain separate processes for ESRS and ISSB-aligned disclosures in overlapping jurisdictions.
ISSB S2 (42 jurs), ISS-Corporate launch with GHG tools; UK SRS, AU AASB S2 explicit Scope1-3, GHG Protocol Scope3 rev2026. New ISSB nature-related disclosures. EBA embedding climate risk into 2027 stress tests. IFRS S2 amendments (May 2026). SAP added IFRS S1/S2 support in Sustainability Control Tower. TCFD Reporting 2026 practical guide bridges TCFD to IFRS S2. South Korea sets mandatory climate reporting path aligning with ISSB. ESRS-ISSB divergence memo confirms equivalence process undefined. IFRS National Standard-setters Newsletter (Aug 2026) provides jurisdictional adoption update.