Reg
Regulatory-led mandates
Regulators decide when ISSB standards become compulsory.
Do I need to comply with ISSB standards?
Work out applicability and industry-based guidance.
This guide explains ISSB applicability, industry-based guidance, and how to assess sustainability-related risks and opportunities so you know when global ISSB standards apply to your organisation.
ISSB applicability overview:
Who needs to comply with ISSB standards?
Compliance depends on jurisdictional adoption (e.g., securities regulators mandating ISSB) and stakeholder expectations. Even before mandates, capital markets and supply chains may request ISSB-aligned reporting to understand sustainability-related risks and opportunities.
Fit
Fit-for-sector guidance
Material topics depend on the specific industry context.
Risk
Risk-driven expectations
High-risk industries often adopt early to satisfy investors.
Signals ISSB may apply to you
Jurisdiction adoption. Securities regulators announce IFRS S1/S2 timelines.
Listed status or fundraising plans. Capital markets may expect ISSB-aligned reporting.
Industry risk. Industries with material sustainability risks (energy, agrifood, tech) face investor pressure.
Supply chain demands. Large customers request ISSB-aligned data to manage sustainability-related risks.
REQUIREMENTS
What ISSB requires from applicable entities
IFRS S1 general disclosures. Governance, strategy, risk management, metrics & targets for sustainability-related risks/opportunities.
IFRS S2 climate disclosures. Detailed climate metrics, scenario analysis, and Scope 1-3 emissions.
Industry-based guidance. SASB metrics to capture industry-specific risks/opportunities.
Connectivity with financials. Link sustainability matters to enterprise value and financial statements.
MATERIALITY + INDUSTRY GUIDANCE
How to use ISSB industry-based guidance
- Identify sustainability-related risks/opportunities. Use ISSB/SASB industry guides to map material topics.
- Assess investor expectations. Engage investors, lenders, and rating agencies to confirm data needs.
- Document applicability decisions. Record why ISSB standards apply (or not) and revisit annually.
- Plan for phased adoption. Even if not mandatory, consider voluntary adoption to satisfy stakeholders.
REPORTING STEPS
How to meet ISSB requirements once applicable
- Confirm timelines. Monitor regulator announcements (e.g., UK, Singapore, Australia).
- Build cross-functional teams. Coordinate finance, sustainability, risk, and legal in RunSustainably.
- Leverage industry metrics. Adopt SASB metrics relevant to your sector.
- Engage assurance partners. Plan for limited/reasonable assurance as requirements evolve.
Actions if unsure about ISSB applicability
Run an applicability workshop. Evaluate jurisdiction, investor, and supply chain expectations.
Pilot disclosures. Test IFRS S1/S2 reporting on priority risks to gauge effort.
Set escalation triggers. Decide how you’ll update the board when ISSB mandates become clear.
GLOSSARY SNAPSHOT
ISSB applicability glossary snapshot
ISSB applicability. Whether your jurisdiction, investors, or partners require ISSB-aligned disclosures.
Industry-based guidance. SASB-derived guidance for sector-specific risks/opportunities.
Sustainability-related risks and opportunities. The focus of ISSB standards when determining materiality.
FAQS
Do I need to comply with ISSB standards? FAQs
Do I need to comply with ISSB standards?
If your jurisdiction mandates them or investors demand them, yes; many companies adopt early to stay competitive.
What is ISSB applicability?
It refers to whether ISSB standards apply to your entity based on regulation, listings, or stakeholder expectations.
How do industry-based guides help?
They highlight sustainability-related risks/opportunities so you can prioritise disclosures.
What if ISSB isn’t mandatory yet?
Use voluntary adoption to build muscle, satisfy investors, and prepare for future mandates.
Drova RunSustainably centralises objectives, tasks, and approvals so sustainability disclosures stay audit-ready.
Ready to keep IFRS/ISSB reporting on track?
SUSTAINABILITY REPORTING HUB
Explore related topics
IFRS sustainability standards overview
Start with the IFRS + ISSB context.
ISSB overview
Learn who sets the global sustainability disclosure standards.
IFRS S1
General sustainability disclosure requirements.
IFRS S2
Climate-related disclosure requirements.
ASRS overview
See how Australia localises IFRS sustainability standards.
AASB S1
Australian version of IFRS S1.
