ISSB, IFRS and ESRS Reporting

Making sense of global sustainability reporting

Sustainability reporting is becoming increasingly structured, with businesses having to navigate different standards and frameworks depending on their markets, investors and reporting requirements.

The International Sustainability Standards Board (ISSB) has developed global sustainability disclosure standards through IFRS S1 and IFRS S2, while the European Sustainability Reporting Standards (ESRS) provide the reporting framework for businesses within the scope of CSRD.

Understanding which framework applies, what information is required and where the standards overlap can be challenging.

BSUK can help you understand the requirements, identify what is relevant to your business and develop a practical approach to sustainability reporting.

Which reporting framework applies to you?

The first step isn’t collecting more data.

It’s understanding which reporting requirements actually apply to your business and what information you need to provide.

Depending on your circumstances, you may need to consider:

ISSB Standards
Global sustainability-related financial disclosures designed primarily to provide investors and other capital-market participants with decision-useful information.

IFRS S1
General requirements for disclosing material information about sustainability-related risks and opportunities that could affect an organisation’s prospects.

IFRS S2
Climate-related disclosures covering material climate-related risks and opportunities, including relevant metrics and targets.

ESRS
The European sustainability reporting standards used by businesses within the scope of CSRD, covering a broader range of environmental, social and governance matters.

The important point is that these frameworks are not simply separate reporting exercises.

ISSB and IFRS Sustainability Standards

The ISSB’s standards provide a global baseline for sustainability-related financial disclosures.

IFRS S1 covers general sustainability-related financial information, while IFRS S2 focuses specifically on climate-related risks and opportunities. Both use a common structure covering areas such as governance, strategy, risk management and metrics and targets.

The ISSB Standards are designed to provide information about sustainability-related risks and opportunities that could reasonably be expected to affect an organisation’s prospects.

BSUK can help you understand what the standards require and identify the information that is relevant to your organisation.

Understanding the difference between ISSB and ESRS

Although ISSB and ESRS have a high degree of alignment, they are not identical.

ISSB is primarily focused on sustainability-related risks and opportunities that could affect an organisation’s prospects and the information investors need.

ESRS takes a broader approach, including the organisation’s impacts on people and the environment as well as sustainability-related financial risks and opportunities.

Understanding that distinction is important when determining what information needs to be collected and reported.

ISSB and ESRS can work together

The good news is that businesses applying both frameworks do not necessarily need to build two completely separate reporting systems.

The ISSB and EFRAG have developed interoperability guidance showing the high degree of alignment between ISSB Standards and ESRS, particularly around climate-related disclosures. The guidance is designed to help organisations identify common requirements and reduce unnecessary duplication.

The opportunity is to build one efficient reporting approach wherever the frameworks allow it, while still addressing the additional requirements of each standard.

Where can BSUK help?

We can help you understand the frameworks, establish what is relevant to your organisation and develop the information needed for effective sustainability reporting.

Our support can include:

ISSB readiness
Understand the requirements of IFRS S1 and IFRS S2 and how they may apply to your organisation.

IFRS S1 reporting
Support reporting on material sustainability-related risks and opportunities.

IFRS S2 reporting
Support climate-related disclosures, including relevant risks, opportunities, metrics and targets.

ESRS reporting
Identify and organise the information required under the relevant ESRS requirements.

Framework mapping
Identify common information across ISSB and ESRS to reduce duplication and make reporting more efficient.

Gap analysis
Establish what information you already have and where further data or evidence may be required.

Data and evidence
Help establish practical processes for collecting and maintaining relevant sustainability information.

Ongoing support
Help maintain and improve your reporting approach as standards and requirements develop.

Need help understanding which reporting framework applies to your business? Talk to BSUK.

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Start with what actually matters

Sustainability reporting can quickly become complicated when businesses try to collect everything before establishing what is relevant.

We take a different approach.

We start with your business and the reporting requirements that apply to you.

From there, we help establish:

What you already have
Existing policies, data, reporting and evidence.

What is relevant
The sustainability-related risks, opportunities and information that need to be considered.

What is missing
Gaps in data, evidence, processes or reporting.

What overlaps
Information that can potentially support more than one reporting framework.

What needs to happen next
A practical route towards meeting the requirements relevant to your organisation.

Avoid unnecessary duplication

Where businesses need to consider more than one framework, the same information may be relevant to multiple reporting requirements.

The interoperability between ISSB Standards and ESRS provides an opportunity to identify common information and reduce unnecessary duplication.

That can make the reporting process more efficient and easier to maintain.

The objective isn’t to create more reporting. It’s to create a reporting approach that works efficiently across the requirements that actually apply to your business.

Turn reporting into useful information

Good sustainability reporting should do more than satisfy a reporting framework.

The information you collect can provide valuable insight into your exposure to climate and other sustainability-related risks and opportunities.

It can also help your business:

Understand climate-related risks
Identify sustainability-related opportunities
Improve data quality and governance
Support strategic decision-making
Identify areas for operational improvement
Respond to investor, customer and stakeholder requirements

Where appropriate, BSUK can help you move from reporting to action – using the information you collect to support better business decisions.

Sustainability reporting should work for your business, not simply create more administration.

Is your business ready for ISSB, IFRS or ESRS reporting?

Whether you are responding to investor requirements, preparing for sustainability reporting, considering ISSB Standards or dealing with ESRS requirements, BSUK can help.

We can establish where you stand, identify what is relevant and help you build a practical reporting approach.

Don’t collect information simply because you think you might need it.

Understand what matters first.

Talk to BSUK about ISSB, IFRS & ESRS Reporting.

book a meeting