ISSB: EDs on SASB Standards and IFRS S2 industry-based guidance

ISSB: EDs on SASB Standards and IFRS S2 industry-based guidance

• 11 July 2025
• Sustainability Reporting
• South African Accounting Academy

Summary:

The International Sustainability Standards Board (ISSB) has published two exposure drafts proposing Amendments to the Sustainability Accounting Standards Board (SASB) Standards and Consequential amendments to the Industry-based Guidance on Implementing IFRS S2.
Article:

The SASB Standards serve as a source of guidance for entities applying IFRS S1. IFRS S1 does not require entities to apply the SASB Standards. However, the SASB Standards help entities develop decision-useful and comparable disclosures in the absence of specific IFRS Sustainability Disclosure Standards.

The proposed amendments:

• present a comprehensive review of nine industries that were prioritised (all eight industries in the Extractives & Minerals Processing sector and the Processed Foods industry);
• align some metrics in a further 41 industries for topics such as Water Management and Workforce Health & Safety; and
• propose updates to Industry-based Guidance on Implementing IFRS S2 (affecting the nine prioritised industries and 37 of the 41 industries) to maintain alignment with climate-related content in the SASB Standards.

These proposals present the first opportunity for global stakeholders of the IFRS Foundation to provide comprehensive input on the cost-effectiveness and decision-usefulness of the SASB Standards. Stakeholders will also have the opportunity to comment on metrics for nature-, climate- and human capital-related topics appearing in several industries. These include metrics associated with Greenhouse Gas Emissions, Energy Management, Water Management, Labour Practices and Workforce Health & Safety. The questions asked and the accompanying survey will enable stakeholders to focus on the areas of the consultation of most interest to them.

These exposure drafts are open for comment until 30 November 2025.

Click on the links below to download the Exposure Drafts (and Basis for Conclusions):

• 507-page Exposure Draft: Proposed Amendments to the SASB Standards https://www.ifrs.org/content/dam/ifrs/project/enhancing-the-sasb-standards/sasb-ed-2025-1-proposed-amends.pdf 
• 42-page Basis for Conclusions on Proposed Amendments to the SASB Standards https://www.ifrs.org/content/dam/ifrs/project/enhancing-the-sasb-standards/sasb-ed-2025-1-bc-proposed-amends.pdf 
• 12-page Exposure Draft: Proposed Amendments to the Industry-based Guidance on Implementing IFRS S2 https://www.ifrs.org/content/dam/ifrs/project/amendments-ifrs-s2-industry-based-guidance/issb-ed-2025-2-s2-ibg.pdf 
• 10-page Basis for Conclusions on Proposed Amendments to the Industry-based Guidance on Implementing IFRS S2 https://www.ifrs.org/content/dam/ifrs/project/amendments-ifrs-s2-industry-based-guidance/issb-ed-2025-2-bc-s2-ibg.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• As an auditor and independent reviewer, you need to comply with International Standards on Sustainability Assurance as well as the Sustainability standards that affect the accounting of sustainability issues, e.g. IFRS S1 and IFRS S2, as this affects compliance with the relevant standards.
• Compilers of financial statements should be aware of proposed changes to existing sustainability standards issued by the standard-setting bodies, e.g. the ISSB, SASB, etc.
• As an auditor and independent reviewer, you should be aware of proposed changes to existing sustainability standards issued by the standard-setting bodies, e.g. the ISSB, SASB, etc.
• Your clients, who are preparers of financial statements should be aware of the latest guidance issued by regulators, e.g. IFRS Foundation, ISSB, etc.

Relevance to Your clients:

• Entities that apply the Sustainability standards that affect the accounting of sustainability issues, e.g. IFRS S1 and IFRS S2, must be aware of amendments in order to comply with the relevant standards.
• Compilers of annual financial statements must have knowledge proposed changes to existing sustainability standards issued by the standard-setting bodies, e.g. the ISSB, SASB, etc.

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