ISSB publishes draft amendment to the IFRS Sustainability Disclosure Standard IFRS S2

On 28 April 2025, the International Sustainability Standards Board (ISSB) published a draft amendment to the IFRS Sustainability Disclosure Standard ‘IFRS S2 - Climate-related Disclosures’ and initiated the consultation process. The proposals contain simplifications for reporting companies when applying the regulations for the disclosure of greenhouse gases.

The amendments are not aimed at reducing disclosures on greenhouse gas emissions, but are intended to make it easier for companies to apply the standards and at the same time maintain the usefulness of the information reported. The amendments include

• Relief for Scope 3 Category 15 emissions in connection with derivatives and certain financial activities,
• Facilitating the use of the Global Industry Classification Standard (GICS) in certain circumstances when disclosing information on financed emissions,
• Clarification to facilitate the use of methodologies other than the Greenhouse Gas Protocol; and
• Authorisation to use global warming potential (GWP) values other than the current Intergovernmental Panel on Climate Change (IPCC) values.

Subject to implementation into national law, the ISSB standards are to be applied for reporting periods from 2024 onwards. Implementation into national law is not currently planned for Germany, meaning that German companies are not yet required to report. This does not affect the option for companies to (additionally) apply the standards voluntarily.

The ISSB is asking for feedback on the proposals during a 60-day consultation phase, which ends on 27 June 2025. It will review this feedback and intends to publish the new standards by the end of the year, subject to feedback.

The draft amendments and other materials can be downloaded from the IFRS Foundation website.