ISSB: Exposure Drafts on SASB Standards and IFRS S2 Guidance

Posted 11 July 2025 Written by Acts Online
Category Sustainability Reporting

Brought to you by SA Accounting Academy: The International Sustainability Standards Board (ISSB) has published two exposure drafts proposing amendments to the Sustainability Accounting Standards Board (SASB) Standards and consequential amendments to the industry-based guidance for IFRS S2.

In terms of the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, the ISSB has issued proposals to refine the Sustainability Accounting Standards Board (SASB) Standards. These standards serve as a primary source of guidance for entities applying IFRS S1, assisting them in developing comparable disclosures in the absence of specific IFRS Sustainability Disclosure Standards.

The proposed amendments represent the first comprehensive review by the IFRS Foundation regarding the cost-effectiveness and decision-usefulness of the SASB Standards. The consultation specifically seeks input on metrics related to nature, climate, and human capital across various industries, including:

  • Greenhouse Gas (GHG) Emissions;
  • Energy Management;
  • Water Management;
  • Labour Practices; and
  • Workforce Health & Safety.

The exposure drafts and the accompanying survey allow stakeholders to provide feedback on specific industry metrics and the overall implementation of IFRS S2 industry-based guidance. The comment period for these exposure drafts remains open until 30 November 2025.

Click here to download the Exposure Drafts and Basis for Conclusions.

What this means for you, your business, or your clients

  • For yourself: Professional accountants and auditors must review the proposed changes to SASB metrics to ensure future sustainability reports meet the evolving “decision-usefulness” criteria required by the ISSB.
  • For your business: Firms providing assurance or advisory services on sustainability reporting should assess how the proposed amendments to industry-specific metrics will impact their internal reporting frameworks and data collection processes.
  • For your clients: Clients currently using SASB Standards to supplement their IFRS S1 and IFRS S2 reporting must evaluate the proposed amendments to ensure their disclosure of GHG emissions and labour practices remains compliant with international best practices.

Originally published at https://accountingacademy.co.za/news/read/issb-eds-on-sasb-standards-and-ifrs-s2-industry-based-guidance

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