New sustainable disclosure will enter into force in 2024. Those new requirement will drastically impact how companies manage and report on their activities and impact regarding human rights, environmental impacts, and associated corporate governance (ESG).

There are many different frameworks and regulations and sometimes it can be challenging to figure out which apply to your company.

The main frameworks and regulations of ESG reporting are:

• International Sustainability Standards Board (ISSB) Standards
• US
  • SEC Climate Disclosure Rule
  • Federal Supplier Climate Disclosure Rule
  • Uyghur Forced Labor Prevention Act (UFLPA)
• EU
  • Corporate Sustainability Reporting Directive (CSRD)
  • Regulation on Deforestation-Free Supply Chains
• UK Climate-Related Financial Disclosure (CFD) Regulations
• German Supply Chain Due Diligence Act
• Task Force on Climate-Related Financial Disclosures (TCFD)
• CDP (formerly the Carbon Disclosure Project)

And there are more various industry specific.

The Financial Reporting Standards (IFRS)

The International Sustainability Standards Board (ISSB) adopt the new International Financial Reporting Standards (IFRS) aiming to create a global baseline of high-quality ESG disclosure standards to better meet investors’ needs. It required all 3 scopes GHG emissions to be disclose.

In 26 June 2023 the new standards published, that will begin applying for annual reporting periods beginning as of January 2024, with companies beginning to issue disclosures against the standards in 2025.

Two new standards to be implemented:

1. IFRS S1 General Requirements for Disclosure
2. IFRS S2 Climate-related Disclosures

For whom this legislation applies to?

It is voluntary standard, that can be adopted by jurisdictions of individual nations,

Almost 170 jurisdiction already adopt the IFRS Accounting Standards, even if the reporting requirement is yet not mandatory.

The US