Global alignment with ISSB standards gathers pace
The push for globally harmonised sustainability reporting has gained traction in the past month as regulators in Pakistan, Malaysia, Qatar, the UK, and Hong Kong announce or propose the adoption of ISSB or ISSB-aligned standards. Adoption of internationally recognised standards helps shift the global balance towards enhanced comparability, transparency, and accountability in how companies disclose sustainability-related risks and opportunities.
In Pakistan, the Securities and Exchange Commission (SECP) will roll out IFRS Sustainability Disclosure Standards (IFRS S1 and S2) in phases from July 2025 to 2027, beginning with large listed companies and expanding to public interest entities. Meanwhile, Bursa Malaysia has enhanced its listing requirements, mandating large companies to report under the ISSB standards from 2025, with smaller entities to follow by 2027. Across the Gulf, the Qatar Financial Centre Regulatory Authority (QFCRA) has proposed amendments aligning its sustainability reporting rules with ISSB standards, coupled with a proportional and phased approach to support readiness.
In the UK, the Financial Reporting Council’s Sustainability Disclosure Technical Advisory Committee (TAC) has recommended adopting IFRS S1 and S2, proposing minor tweaks to integrate the standards into UK law. Meanwhile, Hong Kong has published its IFRS-aligned standards along with a comprehensive roadmap. This roadmap sets clear timelines, with major issuers required to adopt climate-related disclosures under IFRS S2 by 2025, and full implementation by 2028, including assurance requirements.
These announcements reflect a growing international recognition of the need for global alignment in sustainability reporting to address the escalating risks posed by climate change and sustainability challenges. ISSB’s standards provide a unified framework, with IFRS S1 focusing on sustainability-related risks and opportunities, and IFRS S2 diving deeper into climate-related disclosures. Together, they promise consistency and comparability, enabling investors and stakeholders to assess companies’ long-term resilience effectively.
From XBRL International’s perspective, this global momentum signals a shift in regulatory priorities. The adoption of the digital ISSB standards – along with the accompanying taxonomy – paves the way for high-quality, structured, and machine-readable reporting, essential for seamless analysis and decision-making.
