ISSB: Targeted Amendments to IFRS S2

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ISSB: Targeted Amendments to IFRS S2

• 05 January 2026
• Sustainability Reporting
• South African Accounting Academy

Summary:
The International Sustainability Standards Board (ISSB) has issued targeted amendments to greenhouse gas (GHG) emissions disclosure requirements in the IFRS S2 standard, to support implementation.

Articles:
These changes provide reliefs and clarifications to support companies (who were experiencing specific challenges) in applying the Standard, while keeping investor information needs in focus and minimising disruption to jurisdictions that are in the process of adopting or otherwise using ISSB Standards.

The amendments are effective for reporting periods beginning on or after 1 January 2027, with early application permitted.

The ISSB has also issued consequential amendments to align financed emissions metrics in 3 SASB Standards with the corresponding amended requirements in IFRS S2.

The amendments:

• clarify that an entity is permitted to limit measurement and disclosure of Scope 3 Category 15 GHG emissions to financed emissions as defined in IFRS S2;
• permit the use of alternative classification systems—beyond the Global Industry Classification Standard—to disaggregate information about financed emissions;
• clarify the availability of the jurisdictional relief from using the GHG Protocol Standard, if only part of an entity is required to use a different method for measuring GHG emissions; and
• introduce a jurisdictional relief from using global warming potential values from the latest IPCC Assessment Report for converting GHG emissions.

The Amendments are based on feedback from the ISSB’s consultation earlier in 2025, when the Exposure Drafts were issued. Refer to our previous Alert dated 2 May 2025 

This document contains the following:

• Amendments to IFRS S2 Climate-Related Disclosures 
• Approval by the International Sustainability Standards Board of amendments to Greenhouse Gas Emissions disclosures issued in December 2025
• Amendments to the basis for conclusions on IFRS S2 Climate‑Related Disclosures

Click here to download the 33-page Amendments to IFRS 2 document:

https://www.ifrs.org/content/dam/ifrs/publications/amendments/english/2025/issb-2025-1-amendments-ifrs-s2.pdf 

Access the following related documents:

• Consequential Amendments to Align with Amendments to Greenhouse Gas Emissions Disclosures—Amendments to the SASB Standards (15 pages): https://www.ifrs.org/content/dam/ifrs/publications/amendments/english/2025/issb-2025-1-consequential-amendments-ifrs-s2.pdf 

Targeted amendments to IFRS S2—At a glance (1 page): https://www.ifrs.org/content/dam/ifrs/supporting-implementation/ifrs-s2/s2-targeted-amendments-at-a-glance.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.
• As an auditor, compiler and independent reviewer, you should be aware of changes to existing IFRS standards issued by the standard-setting bodies, e.g. the IAASB, ISSB, etc.

Relevance to Your clients:

• 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 IFRSs that are approved as well as when they become effective.

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