Global capital markets now recognize that traditional financial reporting provides an incomplete view of corporate value and risk exposure. Non-financial parameters—grouped into Environmental, Social, and Governance (ESG) domains—directly impact long-term corporate viability, cost of capital, and valuation.

Regulatory frameworks across the United States and Europe have transitioned from voluntary, narrative-driven corporate social responsibility (CSR) statements to mandatory, metrics-driven sustainability reporting integrated with or presented alongside the primary financial filing package.

Established during COP26 by the IFRS Foundation Trustees, the ISSB standardizes global sustainability disclosures much like the IASB standardizes international accounting. The ISSB builds upon the frameworks of the Sustainability Accounting Standards Board (SASB), the Climate Disclosure Standards Board (CDSB), and the Task Force on Climate-related Financial Disclosures (TCFD).

The foundational framework relies on two primary standards: IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures).