The world of finance and business stands on the brink of a significant evolution as it welcomes the inaugural IFRS Sustainability Disclosure Standards. These disclosure standards, issued on 26 June 2023, promise to reshape the way companies report sustainability-related disclosures, pushing the global markets towards an era of greater transparency, consistency, and accountability.
IFRS S1 requires that organisations disclose the sustainability-related risks and opportunities they encounter across the short, medium, and long-term time horizons, while IFRS S2 outlines specific climate-related disclosures that complement IFRS S1. Both standards draw upon the recommendations set forth by the Task Force on Climate-related Financial Disclosures (TCFD), and can help equip investors with pertinent information relevant to their decision-making process.
As we navigate through this transformative phase, it becomes crucial to understand the implications of these standards and how they can potentially influence the global capital market landscape.
The introduction of these standards represents a seismic shift in how companies address sustainability. They reflect the evolving investor expectations and the increasing importance of sustainability-related risks and opportunities in financial decision-making. This development offers both challenges and opportunities - companies must now learn to navigate this new landscape, ensuring compliance with the new standards, while also capitalising on the opportunities they present.
In the face of these significant developments, companies will require expert guidance and support to adapt and thrive. Having closely followed the development of the IFRS Sustainability Disclosure Standards, our dedicated team from our Sustainability and Climate Change practice has substantial experience in sustainability practices, and is well-positioned to advise you on the disclosure requirements. We offer comprehensive solutions, from identifying sustainability-related risks and opportunities to integrating these standards into your reporting mechanisms and ensuring full compliance. With our help, your company can make this transition smoothly, leveraging new opportunities, and contributing effectively to the global sustainability agenda.
Your ESG strategy matters more to your customers and investors than you might think.
Connect with us