Sustainability disclosure has become one of the most notable developments in financial reporting worldwide. This article offers a simplified educational read of the ISSB standards — based on published international sources — and what they may mean for companies in the region. (This is a summary and orientation drawing on the sources listed below, not a reproduction of their text.)
What Are IFRS S1 and S2?
The International Sustainability Standards Board (ISSB) — part of the IFRS Foundation — issued IFRS S1 and IFRS S2 in June 2023. S1 sets the general requirements for disclosing material sustainability risks and opportunities, while S2 focuses on climate-related disclosures.
According to the IFRS Foundation, S2 builds on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and draws on the industry-based SASB Standards, and applies to annual periods beginning on or after 1 January 2024.
Where Does Global Adoption Stand?
According to international trackers — including the S&P Global Sustainable1 tracker — a growing number of jurisdictions have adopted these standards or are moving to adopt them, representing a large share of global GDP, with mandatory rules taking effect in several jurisdictions from the start of 2026.
In December 2025, amendments related to greenhouse-gas emissions disclosure were issued to ease application during the transition phase, per the IFRS Foundation's announcement.
Why Does This Matter for Companies in the Region?
Even companies not directly mandated may be affected through supply chains, partner and financier requirements, and investor expectations. Early understanding of these standards gives a company an edge in readiness and negotiation.
The first practical step is not full compliance overnight but a gap assessment: which sustainability data you already have, and which requires building systems to collect.
Conclusion
The ISSB standards mark a shift from sustainability as rhetoric to sustainability as measurable financial disclosure. As adoption widens globally, building the capacity to collect sustainability data becomes a proactive investment rather than a burden. The Makeen team would be glad to provide advisory and technical support to assess your data readiness. This content is general educational material prepared based on the sources below, and does not constitute binding professional advice; for regulated matters, please consult the competent licensed entities.
Sources
- IFRS Foundation — IFRS S2 Climate-related Disclosures
- S&P Global Sustainable1 — ISSB adoption tracker (2026)