Practical Insights into the Future of Global Sustainability Reporting
Black Sun Global recently hosted a dynamic and insightful webinar exploring IFRS S1 and S2 sustainability disclosure standards and their practical implications across jurisdictions, industries, and organisational functions. The webinar drew together international experts to discuss the significance, application, and early adoption of the International Sustainability Standards Board’s (ISSB) IFRS S1 and S2 standards. The event aimed to help organisations understand the strategic value of sustainability reporting, beyond compliance, and how to effectively implement these new frameworks.
The panel featured a diverse group of thought leaders:
The ISSB’s role and the evolution of the standards include IFRS S1, which provides a broad framework for disclosing sustainability-related risks and opportunities, and IFRS S2, which focuses specifically on climate-related disclosures, building on frameworks like TCFD, SASB, and CDSB. These standards serve not only as regulatory tools but also as strategic instruments to close the gap between market and book value, support investor decision-making, and enhance long-term business resilience.
The anticipated UK timeline includes an upcoming consultation on UK Sustainability Reporting Standards released by the DBT, followed by a consultation from the FCA targeting listed companies. Broader adoption for non-listed entities may be considered later in 2025.
Globally, 36 jurisdictions, representing 60% of GDP and over 50% of emissions, adopt or prepare to adopt the ISSB standards. The ISSB focuses on capacity-building and delivers practical guidance, including through its Knowledge Hub.
Finance teams play an indispensable role in sustainability reporting. Sustainability data integrates into financial reporting processes, with finance leaders working alongside sustainability teams to ensure the reliability, consistency, and alignment of this data. The finance function is also crucial in making sustainability disclosures investor-relevant and audit-ready, especially in relation to their ability to connect the dots between sustainability data and financial reporting.
Early implementation examples from Asia-Pacific and beyond illustrate diverse approaches: one company in Singapore conducts a TCFD-to-S2 gap analysis; a Hong Kong firm demonstrates the role of scenario analysis in identifying risks using colour-coding; another applies a double materiality lens by separating financial disclosures in the annual report from stakeholder-focused impacts in the sustainability report. A Japanese company models future climate impacts on insurance liabilities using scenario analysis, while an Australian firm emphasises efforts to decarbonise and reduce its Scope 3 emissions supported by strong visuals and value chain mapping. In Nigeria, a company integrates its sustainability strategy into annual reports with visual disclosures on decarbonisation. An early adopter in Sri Lanka utilises transitional relief with qualitative scenario analysis and roadmap alignment. These examples highlight the variety of approaches while reinforcing the standards’ adaptability.
IFRS S1 and S2 are redefining the future of corporate reporting. As regulatory landscapes evolve, early adopters are gaining a strategic edge—not just by meeting expectations but by shaping the sustainability narrative. Increasingly, there is a shift from compliance to purpose-led disclosure—where sustainability reporting becomes a vital tool for decision-making, resilience, and stakeholder trust.
There is a growing recognition of environmental and social risks as financially material, along with the importance of standardisation across jurisdictions. There is a need for cross-functional collaboration and internal dialogue to align on materiality and reporting processes. Organisations are advised to begin with materiality assessments aligned with board-level risk agendas and investor priorities, underscoring that governance must precede disclosure. Crucially, effective sustainability reporting is not about ticking boxes—it’s about building trust, enhancing transparency, and driving long-term value.
Upcoming Webinars:
Organisations are encouraged to stay engaged, ask questions, and utilise resources like the ISSB Knowledge Hub to support their sustainability journeys.
Black Sun Global is a stakeholder advisory and engagement agency that's been driving transformation and positive change for ambitious brands for more than 20 years. With deep expertise in disclosure and reporting, ESG, sustainability, and digital engagement, we reshape how organisations connect with customers, investors, employees, and the wider world.
We are trusted partners to some of the most influential global organisations, sparking innovation and sustainable performance through our strategic insights, partnerships, and proprietary technologies.
As founders of the Positive Change Group, we are on a mission to create a new kind of stakeholder relations partner. Our world-class specialists work closely with executive leadership teams to protect reputations, inspire trust, and promote responsible business practices - building resilience and long-term value in a rapidly changing world.
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