The ISSB: The Force Awakens (for Sustainability Reporting)

At Diginex, we like to think of the ISSB as the Force of sustainability reporting. It’s powerful, universal, and, depending on how you wield it, could bring balance to your disclosure galaxy.

Affiliated with the IFRS Foundation (yes, that IFRS—the global gold standard for financial reporting), the International Sustainability Standards Board brings serious credibility to the ESG table. This isn’t just another acronym in the sustainability alphabet soup. It’s a framework with real potential to unify reporting across sectors and borders.

Like the Force, the ISSB is a tool. One that’s there to be used for insight, transparency and compliance, of course. Whether you're a climate crusader or just trying to survive your next audit, it's designed to meet you where you are. It also plays well with others. It aligns with the CSRD. It shares DNA with the TCFD. Even jurisdictions that don’t adopt the ISSB outright often adapt it for their own needs.

Starting to build your sustainability reporting strategy? Now’s the time to get friendly with the ISSB. Our team at Diginex can help you figure out where you stand and where to go next.

Meet the Standards: IFRS S1 and IFRS S2

At the heart of the ISSB are two flagship standards:

• IFRS S1 – General Requirements for Disclosure of Sustainability-related Financial Information

• IFRS S2 – Climate-related Disclosures

S1 is your base. It sets out what to disclose, how to link it with financial statements, and how to make sure your reporting is useful to investors.

S2 zooms in on climate. It takes the TCFD recommendations and packages them into a consistent format. If you've already started with TCFD, you're halfway there.

The best part? These standards are practical. Questions are long form and qualitative, allowing your business to frame your answers in such a way as works for you, like:

• What are your sustainability risks and opportunities?

• How do they affect your business model and financials?

• What are you doing about them?

You don’t need a PhD in carbon accounting. Just clarity, consistency and a little strategy.

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Thinking about how to apply S1 and S2? The Diginex platform can walk you through it, whether you're looking to comply, align or just not panic.

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And this is just the start. The ISSB has made it clear that more standards are coming. IFRS S3 may well address biodiversity, with other areas like water, human capital and pollution likely to follow. The ISSB meet every month to discuss research into the most pressing issues to focus on next. It’s a modular system, and the earlier you engage, the less catch-up you’ll have to play later.

Global Adoption: Mid-2025 Snapshot

As of 2025, the ISSB is shifting from theory to reality. Countries are moving toward full adoption, phased rollouts or customised versions of S1 and S2.

Some early movers are already there:

• Nigeria made ISSB reporting mandatory in January 2024.

• Brazil plans mandatory reporting from 2026 but already supports voluntary use.

• Canada is on track to require ISSB-aligned reporting for listed firms this year.

• Singapore will start mandatory reporting in this year, with large non-listed companies joining in 2027.

Others are prepping their launchpads:

• Australia is heading for mandatory adoption in 2026, with legislation in the works and early guidance encouraged.

• The UK has wrapped up its consultation and is expected to require alignment by 2026.

• Japan and South Korea are building national standards based on ISSB, with custom features and longer timelines.

• China is drafting a closely aligned framework, even if formal adoption isn’t yet confirmed.

The EU remains on its own track with CSRD and ESRS, but thanks to coordination efforts between the ISSB and EFRAG, companies won’t have to do everything twice.

Curious about ISSB progress in your country? Our Diginex experts are tracking it all so you don’t have to. Get in touch and we’ll help you navigate what’s next.

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Final Thoughts

The ISSB isn’t just another sustainability framework. It’s the beginning of something much bigger. With a focus on simplicity and interoperability, it’s set to shape the future of disclosure.

The companies that engage early and embrace transparency won’t just stay compliant. They’ll gain a strategic edge.

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May the disclosure be with you.

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