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TAC February 2025 Paper 2: February General Reporting Update
Executive summary
| Date | 11 February 2025 |
|---|---|
| Paper reference | TAC-Update-February |
| Project | Monitoring |
| Topic | February 2025 General Reporting Update |
Objective of the paper
This paper provides key updates since the update paper provided at the January 2025 TAC meeting.
This includes a summary of the ISSB meetings and related developments, in addition to jurisdictional developments in relation to the adoption of IFRS Sustainability Disclosure Standards to date.
The information in this paper is provided as at 31 January 2025 and does not include any developments after this date.
Decisions for the TAC
There are no decisions required. This paper is for information only.
Appendices
Appendix 1 – Jurisdictional developments.
This paper has been prepared by the Secretariat for the UK Sustainability Disclosure Technical Advisory Committee (TAC). It does not represent the views of the TAC or any individual TAC member.
Context
1The objective of this paper is to inform the TAC of international and jurisdictional developments in sustainability-related reporting. It is for information purposes only and does not ask the TAC to make any decisions.
2The TAC will be provided with an update of UK-specific, international and jurisdictional developments on sustainability-related reporting at each of its meetings.
UK developments
3On 21 January, the Financial Reporting Council (FRC) published the results of its thematic review of climate-related financial disclosures (CFD) by AIM-listed and large private companies, following the first cycle of mandatory reporting. The review found that while preparers have made efforts to meet the CFD requirements, the quality of disclosures varied significantly across the entities assessed.
International Sustainability Standards Board
4The following paragraphs provide a summary of updates from the International Sustainability Standards Board (ISSB) since the last update paper presented at the January 2025 TAC meeting.
5On 29 January, the ISSB Board discussed and voted in favour of proposed targeted amendments to specific greenhouse gas (GHG) emissions disclosures in IFRS S2. The proposed amendments include:
- Amending IFRS S2 paragraphs B62 and B63 to replace the current prescriptive requirement to use the Global Industry Classification Standard (GICS) with a more flexible hierarchy of classification systems. This hierarchy would allow entities to use classification systems mandated by their jurisdictional regulators, where applicable.
- Amending IFRS S2 to clarify that entities are not required to disclose financed emissions for derivatives, investment banking activities, insurance-associated emissions, and other Category 15 GHG emissions that are not considered financed emissions. However, entities would be required to disclose information about what would have been excluded.
- Amending IFRS S2 to allow entities to use Global Warming Potential (GWP) values mandated by their jurisdictional regulators or stock exchanges instead of the current requirement of latest values from the Intergovernmental Panel on Climate Change (IPCC) assessment.
- Amending IFRS S2 to clarify that jurisdictional relief allowing the use of a measurement method other than the GHG Protocol Corporate Standard for GHG emissions applies if an entity, in whole or in part, is subject to such a requirement. This means an entity may consolidate information from parts of its group that use a different measurement method for GHG emissions, as required by a local regulator or stock exchange and apply the existing aggregation and disaggregation requirements in IFRS S1 paragraphs B29–B30.
KPMG has published a simplified summary of these amendments following the ISSB meeting.
As part of its due process, the ISSB will launch an exposure draft for public consultation, allowing stakeholders to provide feedback on these amendments before finalising them.
6At the same meeting of 29 January, the ISSB discussed a research paper highlighting increasing investor interest in biodiversity, ecosystems, and ecosystem services (BEES)-related risks and opportunities, driven by risk management, financial returns, regulations, and asset owner mandates. The paper indicates that investors seek a global disclosure baseline, standardised metrics, and clearer risk-focused data to support decision-making.
7On 30 January, the ISSB published a new guide on applying IFRS S1 when reporting only climate-related disclosures in accordance with IFRS S2. This educational material is intended to help entities understand how to comply with IFRS Sustainability Disclosure Standards when focusing exclusively on climate-related reporting.
8Since 24 January, the ISSB has been inviting stakeholders to participate in an outreach initiative on transition plans. This initiative aims to develop guidance to support the implementation of IFRS S2 transition plan requirements. A virtual public event on this topic is scheduled for 25 February 2025.
9On 31 January, PwC published an illustrative IFRS sustainability disclosures report, showcasing how the IFRS Sustainability Disclosure Standards, IFRS S1 and IFRS S2, could be applied in practice, similar to illustrative financial statements. The report presents examples of how a fictional listed entity, VALUE Plc, might meet key disclosure requirements under IFRS S1 and IFRS S2 using hypothetical scenarios and risks. It gives an illustrative example of a basis of preparation and selected sustainability notes. It assumes VALUE PIc is the same fictional entity featured in PwC's illustrative IFRS Accounting Standards financial statements, ensuring consistency in its group structure, operations, and financial results and position across both reports.
Other pertinent sustainability developments
10The GHG Protocol published its standard development plan for the revision of the GHG Corporate Accounting and Reporting Standard (2004), along with development plans for supplementary standards and guidance, including the Corporate Value Chain (Scope 3) Accounting and Reporting Standard, Scope 2 Guidance, and GHG Accounting and Reporting on the Impacts of Actions and Market Instruments. These plans outline the scope, objectives, approach, governance, procedures, as well as the work plan and timeline. According to the timeline, the draft revised GHG Corporate Accounting and Reporting Standard and Scope 2 Guidance are both scheduled for public consultation in Q2 2026, followed by drafts of the Corporate Value Chain (Scope 3) Accounting and Reporting Standard in Q3 2026 and GHG Accounting and Reporting on the Impacts of Actions and Market Instruments in Q3 2027.The final versions of the GHG Corporate Accounting and Reporting Standard, Corporate Value Chain (Scope 3) Accounting and Reporting Standard, and Scope 2 Guidance are set for publication by Q4 2027, while the final GHG Accounting and Reporting on the Impacts of Actions and Market Instruments is scheduled for Q4 2028.
Jurisdictional developments
11The following paragraphs provide a summary of updates (since 02 January 2025) from other jurisdictions in relation to sustainability-related reporting.
12Appendix 1 contains the summary tables of the different jurisdictional decisions relating to the IFRS Sustainability Disclosure Standards. The tables have been updated since the January 2025 TAC meeting to reflect the most recent developments.
Indonesia
13On 20 January, Indonesia published a draft version of its Sustainability Disclosure Standards. One of the proposed amendments to IFRS S2 replaces the requirement to use GICS with an 'industry classification established by the regulator', similar to the approach taken in the UK.
Jordan
14The Amman Stock Exchange (ASE) has published the 'Climate-related Disclosures Regulatory Framework', requiring entities listed in the ASE20 index to comply with climate-related disclosure requirements under IFRS S1 and IFRS S2 from 1 January 2027. While the framework mandates climate-related reporting, broader sustainability disclosures remain optional but are encouraged.
Appendix 1 – Jurisdictional developments
G20 jurisdictions committed to adopting IFRS Sustainability Disclosure Standards
Table 1 summarises the status of G20 jurisdictions publicly committed to adoption or other use of the IFRS Sustainability Disclosure Standards.
Table 1: G20 jurisdictions (countries and regional bodies) summary as at 31 January 2025.
| Jurisdiction | Current status | Both IFRS S1 & IFRS S2? | Reporting commencing from | Companies in scope |
|---|---|---|---|---|
| African Union: Ghana | Endorsed | Both | 2027-2028 | Listed & unlisted |
| African Union: Kenya | Consultation closed Published roadmap |
Both | 2025-2027 | Banks |
| African Union: Morocco | Publicly committed | - | - | - |
| African Union: Nigeria | Endorsed | Both | 2028-2030 | Listed & unlisted |
| African Union: Tanzania | Endorsed | Both | 2025 | Listed & unlisted |
| African Union: Uganda | Endorsed | Both | 2026-2028 | Listed |
| African Union: Zambia | Endorsed | Both | 2025 | Listed |
| African Union: Zimbabwe | Publicly committed | - | - | - |
| Australia | Endorsed | Both: IFRS S1-voluntary IFRS S2 - mandatory |
2025 | Listed & unlisted |
| Brazil | Endorsed | Both | 2026 | Listed |
Other jurisdictions committed to adopting IFRS Sustainability Disclosure Standards
Table 2 summarises the status of non-G20 jurisdictions publicly committed to adoption or other use of the IFRS Sustainability Disclosure Standards.
Table 2: Other jurisdictions summary as at 31 January 2025.
| Jurisdiction | Current status | IFRS S1 & IFRS S2? | Reporting commencing from | Companies in scope |
|---|---|---|---|---|
| Canada | Endorsed | Both | 2025 | To be confirmed |
| China | Consultation closed | Both | 2026-2030 | Listed & unlisted |
| India | Consultation closed | IFRS S2 only | 2025-2029 | Banking & finance |
| Indonesia | Consultation open – draft standards | Both | 2027 | To be confirmed |
| Japan | Consultation closed | Both | - | Listed |
| Mexico | Consultation closed | Both | 2026 | Listed and private |
| South Korea | Consultation closed | Both | 2026-2030 | Listed |
| Turkey | Endorsed | Both | 2024 | Regulated financial institutions & large companies |
| Chile | Endorsed | Both | 2026 | Listed |
| Costa Rica | Endorsed | Both | 2025-2026 | Listed & unlisted |
| Hong Kong | Endorsed | Both | 2025 | Listed |
| Jordan | Endorsed | Both: IFRS S1 – voluntary FRS S2-Mandatory |
2027 | All entities listed in the ASE20 index |
| Malaysia | Endorsed | Both | 2025-2027 | Listed & large unlisted |
| Panama | Publicly committed | - | - | - |
| Pakistan | Endorsed | Both | 2025-2027 | Listed & unlisted public interest companies |
| Philippines | Consultation closed | Both | 2025 | Listed |
| Qatar | Consultation open | Both | 2026 | Listed |
| Singapore | Endorsed | IFRS S2 only | 2025-2027 | Listed |
| Sri Lanka | Endorsed | Both | 2025 | To be confirmed |
| Switzerland | Consultation open- amending the Ordinance on Climate Disclosures | Both | 2026 | Listed & unlisted |
| Taiwan | Endorsed | Both | 2026-2028 | Listed |
| Thailand | Endorsed | Both | 2026-2030 | Listed |
G20 jurisdictions not publicly committed to adopting IFRS Sustainability Disclosure Standards
Table 3 summarises the status of G20 jurisdictions not publicly committed to adoption or other use of the IFRS Sustainability Disclosure Standards.
Table 3: G20 jurisdictions (countries and regional bodies) not publicly committed to adopting ISSB as at 31 January 2025.
| Jurisdiction | Current status | Topics | Reporting commencing from | Companies in scope |
|---|---|---|---|---|
| Argentina | Unconfirmed | - | - | - |
| European Union (EU)1 | European Sustainability Reporting Standards (ESRS) & Corporate Sustainability Reporting Directive (CSRD) | Ten topical standards including a general and climate change standard | 2024-2028 | Listed & unlisted |
| Russia | Unconfirmed | - | - | - |
| Saudi Arabia | Unconfirmed | - | - | - |
| South Africa | Unconfirmed | - | - | - |
| United States of America (USA) | Climate disclosure rules by the US Securities and Exchange Commission (SEC) | Climate | SEC: 2025-2033 (currently on hold) | Listed |
| Californian climate-related disclosure regulations adopted (SB 253 and SB 261) | California: 2026 | Listed & unlisted |
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Although European Sustainability Reporting Standards are required to be used by EU member states, the IFRS Foundation and EFRAG issued interoperability guidance in 2024 illustrating the high level of alignment achieved between ISSB Standards and ESRS. ↩