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Definition

ISSB (International Sustainability Standards Board)

The International Sustainability Standards Board (ISSB) develops IFRS Sustainability Disclosure Standards for companies to report investor-focused information about sustainability-related risks and opportunities.

What is the ISSB?

The ISSB is the IFRS Foundation's sustainability standard-setting board. It issued IFRS S1 and IFRS S2 on 26 June 2023. Keslio's ISSB guide explains what they ask companies to disclose.

Why does the ISSB matter to you?

You meet ISSB-based requirements when a jurisdiction adopts or adapts them, or a parent or investor asks for aligned disclosure. Australia's mandatory AASB S2 is based on IFRS S2; Malaysia's NSRF uses both ISSB Standards as its baseline.

How does the ISSB work?

The board issues standards; jurisdictions decide who must use them and when. Check the local standard, reporting period, thresholds, modifications, and reliefs before preparing disclosures.

What mistakes should you avoid?

  • Treating an ISSB publication date as a local legal start date.
  • Calling a report ISSB-compliant after applying only selected IFRS S1 or IFRS S2 requirements.
  • Assuming a local adaptation is identical to the ISSB text.

Is the ISSB the same as IFRS S1 and IFRS S2?

No. The ISSB is the board. IFRS S1 is its general disclosure standard, while IFRS S2 covers climate and is applied with IFRS S1.

Does the ISSB apply to every company?

No. Local law or a request determines whether you must use ISSB Standards or a local version. Confirm the rule and reporting year.

What should you send when someone asks for ISSB reporting?

Confirm the country or market, standard version, company or group covered, period, and permitted exceptions. Send the disclosures with the records, assumptions, and approvals behind them.

Where it comes up

Australia's AASB S2 adaptation of the ISSB's IFRS S2 standardAASB S2, Comparison with IFRS S2 (checked 2026-08-20)Malaysia NSRF use of IFRS S1 and IFRS S2 as baseline ISSB StandardsNational Sustainability Reporting Framework, baseline standards and phased implementation (checked 2026-08-20)

Related terms

IFRS S1 General Requirements

IFRS S1 sets investor-focused disclosure requirements for sustainability risks and opportunities that could affect a company's cash flows, access to finance, or cost of capital, and connects those disclosures to its financial statements.

IFRS S2 Climate-related Disclosures

IFRS S2 requires companies applying ISSB Standards to disclose climate-related risks and opportunities that could affect cash flows, access to finance, or cost of capital through governance, strategy, risk management, metrics, and targets, including GHG emissions.

Sustainability Reporting

Sustainability reporting is the process of publishing evidence-backed information about a company's environmental, social, and governance impacts, risks, opportunities, policies, targets, and performance for a defined period and business boundary.

Materiality

Materiality is the test a company uses to decide which sustainability topics matter enough to manage or report because they could affect its finances, reflect significant impacts on people or the environment, or both.

Sources

Last verified 2026-08-20

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ISSB (International Sustainability Standards Board) Definition | Keslio