From SASB and TCFD to ISSB: Simplifying Sustainability Reporting

By Peyton Horvath – ESG Analyst

Sustainable Investment Group (SIG)

The Implementation of
SASB and TCFD into ISSB Standards

photo of team creating sustainability report TL;DR: Streamlining Sustainability Reporting: The ISSB has consolidated the SASB and TCFD standards into the new IFRS S1 and S2 standards to create a unified global baseline for sustainability disclosures. This integration simplifies compliance, enhances clarity for investors, and aligns with regional and sector-specific requirements, providing a more coherent framework for companies to report on sustainability-related financial information and climate-related risks and opportunities.

Sustainability reporting has become mainstream in dozens of industries investment decision-making. However, with over 600 ESG reporting provisions globally, it can be difficult for companies to determine which standards to adopt. In an effort to simplify the sector, the IFRS Foundation has undertaken multiple disclosures, including SASB and TCFD, and developed them into one sustainability reporting baseline. To understand the evolution of sustainability reporting, it’s crucial to recognize the role of key organizations shaping these standards. Let’s delve into one such pivotal entity, the IFRS Foundation.

What is the IFRS?

The International Financial Reporting Standards (IFRS) Foundation is an organization whose mission is to provide transparent information for organizations to provide for their investors. As sustainability has become prevalent in investment decision-making, the IFRS created the International Sustainability Standards Board (ISSB) in 2021. 

The ISSB has four core objectives:  

  • Provide a baseline of sustainability disclosures.
  • Meet information needs of investors.
  • Aid companies in providing quality sustainability information to global markets.
  • Ensure alignment with disclosures that are region-specific or targeted at expansive stakeholder groups.

These objectives reflect a commitment to not only provide comprehensive and comparable data but also to ensure that this information is universally accessible and actionable across different markets and regulatory environments. To meet these goals, The ISSB built on existing reporting initiatives including the Climate Disclosure Standards Board (CDSB), Task Force on Climate-related Financial Disclosures (TCFD), Value Reporting Foundation’s Integrated Reporting Framework and SASB Standards. Combining the guidelines of these frameworks, the ISSB developed the IFRS Sustainability Disclosure Standards, which are designed to act as global baselines of sustainability disclosures.  

What are the ISSB Standards? 

Incorporating these existing disclosures, the ISSB created two new standards—IFRS S1 and IFRS S2.  

IFRS S1—the General Requirements for Disclosure of Sustainability-related Financial Information—sets general disclosure requirements designed to enable a company to communicate to investors the sustainability-related risks and opportunities it faces over the short and long term. IFRS S1 covers sustainability-related financial information and specifies requirements for how a company discloses such information, including location, timing of reporting, uncertainties, and errors.  

The second standard, IFRS S2—Climate-related Disclosures—is designed to be used alongside IFRS S1 and requires information specifically about climate-related risks and opportunities, while IFRS S1 is more generic. The ISSB launched the implementation of these two standards in January of 2024 and companies may now disclose to these standards. 

How are SASB and TCFD implemented in the ISSB Standards?

SASB and TCFD are two of the most popular sustainability reporting frameworks. Despite their acquisition by the IFRS, both SASB and TCFD are fully incorporated in IFRS S1 and IFRS S2 Standards. Transitioning from the broader goals of the ISSB, let’s examine how specific standards like SASB have been integrated within the new framework.

SASB Standards 

SASB Standards, formerly run by the Sustainability Accounting Standards Board (SASB), were created to help businesses and investors communicate the financial impacts of sustainability. SASB developed standards for 77 industries to identify risks and opportunities most likely to impact their financial metrics. As of August 2022, the ISSB assumed responsibility for the SASB Standards. The ISSB has committed to improving the SASB Standards and applying them to both their disclosures, IFRS S1 and IFRS S2.  

IFRS S1 requires companies to consider the SASB Standards while identifying sustainability-related risks and opportunities and relevant information to disclose. IFRS S2 applies SASB by including climate-related metrics derived from the standards.   

TCFD Standards 

In 2017, the Task Force on Climate-Related Financial Disclosures (TCFD) released climate-related financial disclosure recommendations designed around four elements: governance, strategy, risk management, and metrics and targets. While TCFD is one of the most popular sustainability disclosures, they announced in October 2023 that it would disband and be taken over by the IFRS Foundation. Beginning in 2024, the ISSB has taken over the monitoring of the Task Force on Climate-Related Financial Disclosures (TCFD) Standards. In their attempt to consolidate multiple sustainability reportings, they have ensured IFRS S2 fully incorporates the TCFD Recommendations.   

Should companies who apply SASB and TCFD disclose through ISSB?

Companies that already applied  the TCFD Recommendations and the SASB Standards are in a prime position to disclose through the ISSB Standards. If local or national regulations require either standard, the implementation of IFRS S1 and S2 should cover any requirements but should be confirmed by officials. However, as the ISSB has taken over both standards, companies should consider transitioning to IFRS S1 and S2 since the ISSB will be amending and updating both SASB and TCFD standards in their journey to provide an extensive sustainability reporting baseline. 

In conclusion, as sustainability disclosures become integral to financial reporting, the process can seem convoluted with dozens of organizations from which to choose. By simplifying a few of these standards, the ISSB is now providing companies the opportunity to continue upholding established standards while also reducing the amount of reporting a company must do to meet current guidelines. This streamlined approach is designed to enhance the coherence and effectiveness of sustainability reporting, paving the way for more informed investment decisions and a greater alignment with global sustainability objectives.



ESG: Environmental, Social, and Governance 

IFRS: International Financial Reporting Standards 

ISSB: International Sustainability Standards Board 

SASB: Sustainability Accounting Standards Board 

TCFD: Task Force on Climate-related Financial Disclosures 



IFRS – Making the transition from TCFD to ISSB 

About us – SASB ( 

How have the SASB Standards and TCFD recommendations been used together, and how are they converging through the work of the ISSB? – Sustainability Accounting Standards Board 

IFRS – ISSB: Frequently Asked Questions 



portrait of Peyton H. | SIGPeyton Horvath is an ESG Analyst based in Columbia, SC, specializing in sustainability reporting for key frameworks like GRESB and CDP. A recent graduate with a Bachelor of Arts in Environmental Studies from the University of South Carolina, Peyton has also earned her LEED GA certification, highlighting her dedication to environmental stewardship. Her role focuses on analyzing ESG reports and facilitating data collection and processing for energy, waste, and water metrics, crucial for sustainable development.


Columbia, SC


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