ISSB: Proposed updates to Digital Sustainability Taxonomy

---

ISSB: Proposed updates to Digital Sustainability Taxonomy

• 03 August 2026
• Sustainability Reporting
• South African Accounting Academy

Summary:
The International Sustainability Standards Board (ISSB) has published IFRS Sustainability Disclosure Taxonomy – Proposed Update 1 Amendments to Greenhouse Gas Emissions Disclosures. 

Article:
This proposal considers updates to the IFRS Sustainability Disclosure Taxonomy (ISSB Taxonomy) reflecting Amendments to Greenhouse Gas Emissions Disclosures, which made targeted amendments to IFRS S2 Climate-related Disclosures in December 2025. 

The ISSB Taxonomy neither introduces new requirements nor affects a company’s compliance with ISSB Standards.

The December 2025 amendments to IFRS S2 were developed in response to implementation challenges identified as companies began applying the Standard. They provided reliefs and clarifications in relation to greenhouse gas emissions disclosures while maintaining decision-useful information for investors. Refer to our previous Alert dated 5 January 2026 and https://www.ifrs.org/content/ifrs/home/news-and-events/news/2025/12/issb-issues-targeted-amendments-ifrs-s2.html 

The ISSB Taxonomy supports digital financial reporting by enabling companies to assign tags to information prepared in accordance with ISSB Standards.

Tagging makes reported information computer-readable, enabling investors and other capital providers to search, extract, compare and analyse sustainability-related disclosures more efficiently.

The deadline for comments is 28 September 2026.

Click here to download the 15-page document:

https://www.ifrs.org/content/dam/ifrs/project/ifrs-sustainability-disclosure-taxonomy-update-2024-amends-ghg-emissions-disclosures/issb-ptu-2026-1.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• As an auditor and independent reviewer, your clients need to comply with IFRS and the relevant disclosure requirements – specifically regarding GHG emissions. This means that you need knowledge of the impact of amendments to IFRSs that are approved as well as when they become effective.
• Failure to adhere to International standards on Sustainability may be interpreted as con-compliance with a financial reporting framework, and may influence the opinion/conclusion expressed on the annual financial statements.
• 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, IFRS Foundation, 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, IFRS, etc.

Relevance to Your clients:

• Entities that apply the Sustainability standards that affect the accounting of sustainability issues, must be aware of proposed changes to existing sustainability standards and the latest amendments in order to comply with the relevant standards.
• Applies to any entity that is required, or chooses, to prepare general purpose financial statements. General purpose financial reporting encompasses—but is not restricted to—an entity’s general purpose financial statements and sustainability-related financial disclosures.
• Failure to adhere to International standards on Sustainability may be interpreted as con-compliance with a financial reporting framework, and may influence the opinion/conclusion expressed on the annual financial statements.
• Compilers of annual financial statements must have knowledge of the impact of amendments to relevant standards that are approved as well as when they become effective.

0 COMMENTS

LEAVE A COMMENT