IFRS S1 General Requirements
IFRS S1 is the foundation of the ISSB framework — it sets the general requirements for sustainability-related financial information disclosures. Think of it as the ISSB equivalent of ESRS 1 and ESRS 2 combined.
IFRS S1 is the foundation of the ISSB framework — it sets the general requirements for sustainability-related financial information disclosures. IFRS S1 adopts the TCFD four-pillar structure for all sustainability disclosures:.
The four-pillar structure
IFRS S1 adopts the TCFD four-pillar structure for all sustainability disclosures:
Governance: How does the board oversee sustainability risks and opportunities? What are management's roles and responsibilities?
Strategy: What sustainability-related risks and opportunities affect the entity's strategy, business model, and future cash flows? What are the financial effects?
Risk management: How does the entity identify, assess, prioritise, and monitor sustainability risks?
Metrics and targets: What metrics does the entity use to measure and monitor sustainability performance? What targets has it set?
Financial materiality vs double materiality
IFRS S1 uses financial materiality — information is material if omitting or misstating it could reasonably affect the decisions of primary users of general purpose financial reports (investors, lenders, creditors).
This is different from CSRD/ESRS double materiality, which also requires impact materiality — disclosing how the company affects the world regardless of financial consequence.
In practice: ISSB captures everything investors care about financially. CSRD captures everything investors care about plus everything society cares about. CSRD/ESRS scope is broader.
Connecting IFRS S1 to IFRS S2
IFRS S1 sets the general requirements; IFRS S2 is the climate-specific standard. S1 and S2 work together — S1 provides the framework and principles, S2 provides the detailed climate requirements.
Jurisdictions adopting ISSB typically mandate S1 and S2 together. The UK adopted both from January 2025. Australia from July 2024. Japan from March 2025.
Companies reporting under both CSRD (ESRS) and ISSB (S1/S2) in multiple jurisdictions can produce a combined report — approximately 70% of the content overlaps for climate disclosures.
Frequently asked questions
Do IFRS S1 and S2 apply to my company?
They apply if your jurisdiction has mandated ISSB standards — check the list of adopting jurisdictions on the IFRS Foundation website. Major adopters include UK, Australia, Japan, Singapore, Brazil, and Canada.
Can we report under ISSB instead of CSRD?
No — if you are in CSRD scope, CSRD is mandatory and cannot be substituted. ISSB is a separate (usually voluntary or nationally mandated) framework. You may need to report under both if you operate in multiple jurisdictions.
What is the relationship between ISSB and SASB?
ISSB acquired SASB in 2022. SASB industry-specific metrics are now ISSB-supported and can be used to satisfy the industry-specific metric requirements of IFRS S1. SASB standards are not being further developed as standalone standards.