Question 1

What are ISSB standards and what do IFRS S1 and IFRS S2 require?

Accepted Answer

The International Sustainability Standards Board (ISSB) issues IFRS Sustainability Disclosure Standards — the global baseline for investor-focused sustainability reporting. IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) requires organisations to disclose material sustainability-related risks and opportunities that could affect their cash flows, access to finance, and cost of capital. IFRS S2 (Climate-related Disclosures) requires specific climate risk and opportunity disclosures structured around the four TCFD pillars: governance, strategy, risk management, and metrics and targets — including Scope 1, 2 and 3 GHG emissions. Ledger2Carbon's ISSB sustainability disclosure organisation platform manages the full IFRS S1 and IFRS S2 disclosure lifecycle with structured ownership, evidence tracking, and finance-relevant outputs aligned to IFRS financial reporting.

Question 2

How does Ledger2Carbon support IFRS S2 climate disclosure requirements?

Accepted Answer

Ledger2Carbon's ISSB sustainability disclosure organisation platform supports IFRS S2 climate disclosure across all four TCFD-aligned pillars. For governance, the platform documents board and management oversight of climate risks and opportunities with structured sign-off workflows. For strategy, it structures disclosure of how climate risks and opportunities affect the business model and financial planning, including scenario analysis inputs. For risk management, it tracks climate risk identification and integration with existing enterprise risk frameworks. For metrics and targets, it provides the Scope 1, 2 and 3 GHG inventory — built from financial system data using a finance-first approach — that IFRS S2 requires, alongside climate target tracking aligned to SBTi and net-zero commitments.

Question 3

What is the relationship between ISSB standards and TCFD recommendations?

Accepted Answer

IFRS S2 is built directly on the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, which the ISSB incorporated and superseded when it published its standards in 2023. Companies that have been preparing TCFD-aligned disclosures have a strong foundation for IFRS S2 compliance — the four-pillar structure (governance, strategy, risk management, metrics and targets) is identical. However, IFRS S2 introduces additional requirements beyond TCFD, including mandatory Scope 3 disclosure for most companies, cross-industry metric categories, and industry-specific metrics aligned to SASB standards. Ledger2Carbon's ISSB sustainability disclosure organisation platform manages these additional requirements alongside the TCFD foundation.

Question 4

How does ISSB disclosure align with CSRD and ESRS reporting?

Accepted Answer

The ISSB and EFRAG (European Financial Reporting Advisory Group) have published an interoperability guidance confirming that companies complying with ESRS under CSRD will also substantially satisfy IFRS S1 and IFRS S2 requirements. This means EU-based companies subject to CSRD can use ESRS-aligned disclosures to meet ISSB obligations for international investors without duplicating data collection. Ledger2Carbon's ISSB sustainability disclosure organisation platform is designed for this dual-framework reality — the same underlying Scope 1, 2 and 3 carbon accounting data, evidence files, and governance workflows support both ESRS and ISSB disclosure outputs, eliminating the need to run parallel reporting processes.

Question 5

Why is a finance-first approach important for ISSB sustainability disclosure?

Accepted Answer

ISSB standards are explicitly designed for investor decision-making — they require sustainability disclosures to be consistent with and connected to IFRS financial statements. This means the sustainability data disclosed under IFRS S1 and S2 must be reconcilable with the numbers in your balance sheet, income statement, and cash flow statement. A finance-first approach — where sustainability data is derived from the same financial transactions and ERP systems as financial reporting data — is essential to meet this requirement credibly. Ledger2Carbon's ISSB sustainability disclosure organisation platform is built on exactly this foundation: carbon and ESG data flows from the same financial system source as your IFRS financial statements, ensuring consistency that auditors and investors can verify.

ISSB Sustainability Disclosure Organisation for Finance-Relevant Reporting

Comprehensive Guide to ISSB Sustainability Disclosure Organisation Requirements

Key Features of ISSB Standards

Enhanced Transparency

Streamlined Compliance Processes

Improved Decision-Making Insights

Navigating ISSB Compliance with Ease

Step 1: Initial Assessment

Step 2: Data Integration

Step 3: Compliance Reporting

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