# ISSB reporting support: IFRS S1, IFRS S2, SASB and TCFD

Canonical: https://finbryn.com/us/services/esg-climate-reporting-support/issb-ifrs-s1-s2-sasb-tcfd-reporting

Finbryn provides ISSB reporting support for US subsidiaries and parents reporting under IFRS S1 and S2, preparing drafts for management to approve. IFRS S2 applies to annual periods beginning on or after January 1, 2024, and by the end of March 2026 more than 40 jurisdictions had decided to use ISSB Standards or were taking steps to introduce them.

The ISSB's standards are written for investors. IFRS S1 sets the general requirements for sustainability-related financial information and IFRS S2 covers climate. No US regulator requires either one, so a US company meets them through a group: the parent reports in a jurisdiction that has adopted ISSB Standards, and the parent's reporting team asks the US entity for numbers on the group's template.

That request usually lands on finance. It asks for gross Scope 1, Scope 2 and Scope 3 emissions measured on the GHG Protocol basis, amounts that tie to the financial statements, and narrative on governance and risk management that the US entity's management has to stand behind. SASB, TCFD and the UN Global Compact come up in the same request, because each of them overlaps with S1 and S2 in a different way.

Finbryn prepares the US entity's data schedules and draft sections from the ledgers and the GHG inventory, mapped to the group's template. Management and the group reporting team approve them. Finbryn provides no assurance and never says a report meets the standard. An independent assurance provider does any assurance work.

A US entity often meets IFRS S2 first through a short email from the parent asking for last year's Scope 1 and Scope 2 figures and how they were measured. The questions behind that email are wider than they look: which entities sit in the boundary, whether Scope 2 was calculated on both methods, and whether the climate numbers agree with the financial statements. The sections below take the standards, the older frameworks and the December 2025 changes in turn.

What you get: Mapping of the group's ISSB template to US entity data sources; Gross Scope 1, Scope 2 and Scope 3 schedules measured on the GHG Protocol Corporate Standard; Cross-industry metric schedules tied to amounts in the financial statements; SASB industry topic and metric screen showing which topics management considered; Draft governance, strategy and risk management narrative for management to approve; TCFD and UN Global Compact crosswalk to the same data set

Software we work in: Microsoft Excel, NetSuite, Sage Intacct

## What are IFRS S1 and IFRS S2?

The ISSB issued both standards in June 2023, and both are effective for annual reporting periods beginning on or after January 1, 2024. IFRS S1 asks a company to disclose material information about sustainability-related risks and opportunities that could reasonably be expected to affect its cash flows, access to finance or cost of capital, organized around governance, strategy, risk management, and metrics and targets. IFRS S2 applies the same structure to climate and integrates and builds on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Paragraph 29 of IFRS S2 sets out the cross-industry metrics. A company discloses its absolute gross Scope 1, Scope 2 and Scope 3 emissions in metric tonnes of CO2 equivalent, measured under the GHG Protocol Corporate Standard (2004) unless a jurisdictional authority or exchange requires another method. It then gives the amount and percentage of assets or activities vulnerable to transition risks and to physical risks, the amount aligned with climate-related opportunities, capital expenditure, financing or investment deployed toward risks and opportunities, whether and how an internal carbon price is used, and how climate considerations enter executive remuneration.

## Do US companies have to follow ISSB standards?

Not as a matter of US law. The SEC stayed its own 2024 climate disclosure rule on April 4, 2024, voted on March 27, 2025 to end its defense of it (SEC Press Release 2025-58), and published a proposal to rescind it on June 3, 2026 (91 FR 33296). No final rescission had been adopted as of 2026-10-16. The IFRS Foundation's April 2026 Advisory Council update counts more than 40 jurisdictions that had decided to use ISSB Standards, or were taking steps to introduce them, as of the end of March 2026. The names listed in the Americas include Brazil, Canada, Chile and Mexico, and the United States is not among them.

A US entity still ends up applying the standards when its parent sits in one of those jurisdictions, when a customer or lender in one asks for ISSB-based data, or when the US company chooses them voluntarily. California's SB 261 also names the ISSB's IFRS Sustainability Disclosure Standards as a framework a covered entity may use for its climate-related financial risk report. SB 261 is enjoined for now, which the [SB 253 and SB 261 comparison](/guides/california-sb-253-vs-sb-261-who-must-report) explains with dates.

Whether any of these makes the standards apply to a particular US entity is a legal and group-policy question. Finbryn prepares the data once that is settled.

## How do SASB, TCFD, CDSB and the UN Global Compact fit?

| Framework | Status as of 2026-10-16 | How it connects to IFRS S1 and S2 |
| --- | --- | --- |
| SASB Standards | Maintained by the ISSB; 77 industries | IFRS S1 requires a company to refer to and consider the applicability of SASB topics and metrics. It does not require applying them (IFRS Foundation, February 2024) |
| TCFD | Disbanded in October 2023 | Its recommendations are incorporated in the ISSB Standards, so applying S1 and S2 covers them |
| CDSB Framework | Consolidated into the IFRS Foundation in 2022; no further technical work | Part of the evidence base for ISSB standards; its guidance stays useful for topics the ISSB has not yet covered |
| UN Global Compact Communication on Progress | Annual and mandatory for business participants | Separate from S1 and S2; for the 2026 reporting year an uploaded sustainability report can replace the questionnaire |

The UN Global Compact's page adds a deadline: participants that miss the submission window are marked Non-communicating, and those that have not filed a late report by December 31, 2026 are delisted on January 1, 2027. A group already preparing S1 and S2 data can usually reuse the same schedules for that report, with the CEO statement as a separate item.

## What changed in December 2025?

In December 2025 the ISSB issued Amendments to Greenhouse Gas Emissions Disclosures (Amendments to IFRS S2), aimed at reducing complexity, duplicative reporting and cost. The IFRS Advisory Council's April 2026 update lists three topics: the measurement and disclosure of Scope 3 category 15 emissions beyond financed emissions, the classification system used to disaggregate financed emissions for relevant entities, and the measurement method and global warming potential values used. The amendments are effective for reporting periods beginning on or after January 1, 2027, with early application permitted.

Two moving parts affect a US entity's inventory. First, S2 still requires the 2004 Corporate Standard and the Scope 3 categories of the 2011 Scope 3 Standard, and the ISSB has said it is assessing whether to reference the GHG Protocol's updated standards once they are published. Second, the GHG Protocol's own Scope 2 revision is under consultation, so the market-based figure a group asks for may change definitions in the years ahead. Both are reasons to keep the factor register and methodology note current in the [GHG inventory](/services/esg-climate-reporting-support/ghg-inventory-scope-1-2).

## What does Finbryn prepare for a US entity?

The work is organized around the group's template, not around Finbryn's own format.

- **Template mapping.** Each line of the group's ISSB request is matched to a source at the US entity: a ledger account, payroll report, utility record or the GHG inventory.
- **Emissions schedules.** Gross Scope 1, Scope 2 and, where the group asks for it, Scope 3 by category, on the GHG Protocol Corporate Standard, with Scope 2 on the location-based method and information on any contractual instruments.
- **Financial-statement links.** Cross-industry metrics such as capital deployed toward climate risks and opportunities are tied to amounts in the entity's books, because S2 expects the climate metrics to be consistent with the financial statements. The [IFRS reporting packs](/services/month-end-close-reporting/ifrs-reporting-packs-us-subsidiaries) already put US books in the parent's format, and [consolidations](/services/month-end-close-reporting/consolidations) carries the same entity structure.
- **SASB screen.** A short worksheet showing which SASB topics and metrics for the entity's industry management considered and what it concluded.
- **Draft narrative.** Governance and risk management text for management to edit, plus a TCFD and UN Global Compact crosswalk to the same data.

Scenario analysis, materiality calls and the judgments behind transition risk estimates stay with management.

## What stays outside Finbryn?

Assurance over sustainability information is performed by an independent assurance provider the company or its group engages, under the standard the group's jurisdiction names. Finbryn provides none and does not describe any figure as verified. Legal conclusions about which standard applies belong to counsel and the group's reporting policy, and the final report belongs to the group. What Finbryn leaves behind is a set of schedules and a methodology note in which each number can be traced to a ledger, a utility record or a stated estimate.

## The process

1. **Obtain the group's ISSB template**: The parent's reporting team sends the data request, the reporting period and the standard or jurisdiction it follows.

2. **Map each request to a source**: Every line is matched to a ledger account, payroll report, utility record or inventory schedule, and gaps are listed.

3. **Build the emissions and metric schedules**: Gross Scope 1, Scope 2 and requested Scope 3 figures, plus capital and financial-statement-linked metrics.

4. **Run the SASB screen**: Topics and metrics for the industry are listed with management's decision on each.

5. **Draft the narrative sections**: Governance and risk management text drafted for management to edit, with TCFD and UN Global Compact crosswalks.

6. **Management and the group approve**: The US entity's management signs off its submission to the group; any assurance comes from an independent provider.

## Common problems we fix

| The problem | How we fix it |
| --- | --- |
| The group template asks for Scope 3 and the US entity has never measured it | A category-by-category screen lists which categories can be built from spend and activity data and which need supplier information. |
| Climate numbers do not agree with the amounts in the financial statements | Each financial-linked metric is tied to a ledger account and the reconciliation is kept in the file. |
| SASB, TCFD and the UN Global Compact each get a separate data pull | One data set feeds a crosswalk, so the same figure is used in every report. |
| The standard's reporting basis changes between years | The methodology note records the factor vintage and the GWP values used, so a restated figure can be explained. |

## By the numbers

| Figure | What it means | Source |
| --- | --- | --- |
| More than 40 | Jurisdictions deciding to use or introduce ISSB Standards, end of March 2026 | [ifrs.org/content/dam/ifrs/meetings/2026/april/ac/ac5-issb-update.pdf](https://www.ifrs.org/content/dam/ifrs/meetings/2026/april/ac/ac5-issb-update.pdf) (2026-10-16) |
| January 1, 2024 | Effective date of IFRS S1 and IFRS S2 for annual reporting periods | [ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/ifrs-s2-climate-related-disclosures](https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/ifrs-s2-climate-related-disclosures/) (2026-10-16) |
| January 1, 2027 | Effective date of the December 2025 amendments to IFRS S2 (early application permitted) | [ifrs.org/content/dam/ifrs/meetings/2026/april/ac/ac5-issb-update.pdf](https://www.ifrs.org/content/dam/ifrs/meetings/2026/april/ac/ac5-issb-update.pdf) (2026-10-16) |
| 77 | Industries covered by the SASB Standards | [ifrs.org/issued-standards/sasb-standards](https://www.ifrs.org/issued-standards/sasb-standards/) (2026-10-16) |

Pricing: Scoped per engagement from the group template, the number of metrics requested and whether a GHG inventory already exists. It is priced apart from the monthly tiers on the rate card, and the fee is confirmed in writing before work begins. ([See pricing](https://finbryn.com/us/pricing))

## Glossary

- **ISSB**: The International Sustainability Standards Board, which issues IFRS S1 and IFRS S2 under the IFRS Foundation.

- **IFRS S1**: The general requirements standard for disclosing sustainability-related financial information.

- **IFRS S2**: The climate-related disclosures standard, which integrates and builds on the TCFD recommendations.

- **SASB Standards**: Industry-based standards identifying sustainability topics most relevant to investors in 77 industries, now maintained by the ISSB.

- **TCFD**: The Task Force on Climate-related Financial Disclosures, disbanded in October 2023 after its recommendations were incorporated in the ISSB Standards.

## Frequently asked questions: ISSB reporting support: IFRS S1, IFRS S2, SASB and TCFD

**Q: What are IFRS S1 and IFRS S2?**

A: IFRS S1 sets general requirements for disclosing sustainability-related financial information and IFRS S2 covers climate-related disclosures. The ISSB issued both in June 2023, and both are effective for annual reporting periods beginning on or after January 1, 2024. Whether a company must apply them depends on its jurisdiction.

**Q: Is TCFD still used after the ISSB took over?**

A: TCFD disbanded in October 2023, and the IFRS Foundation says its recommendations are fully incorporated into the ISSB Standards, so a company applying IFRS S1 and S2 meets them. IFRS S1 organizes disclosure around the same four areas TCFD used: governance, strategy, risk management, and metrics and targets.

**Q: Do US companies have to follow ISSB standards?**

A: Not under US law. The SEC stayed its 2024 climate rule on April 4, 2024, voted on March 27, 2025 to end its defense of it, and published a proposal to rescind it on June 3, 2026 (91 FR 33296). No final rescission had been adopted as of 2026-10-16. The United States is not on the IFRS Foundation's list of jurisdictions as of the end of March 2026. A US entity applies the standards when its parent's jurisdiction does or when it chooses to.

**Q: Does IFRS S1 require using the SASB Standards?**

A: It requires a company to refer to and consider the applicability of SASB topics and metrics. It does not require applying them (IFRS Foundation, February 2024). Management documents what it considered and concluded.

**Q: What changed in IFRS S2 in December 2025?**

A: The ISSB issued targeted amendments to the greenhouse gas emissions disclosures: Scope 3 category 15 beyond financed emissions, the classification system for financed emissions, and the measurement method and GWP values. They are effective for periods beginning on or after January 1, 2027, with early application permitted.

**Q: Does Finbryn provide assurance over ISSB reports?**

A: No. Finbryn prepares data schedules and draft sections for management and the group reporting team. IFRS S1 and S2 have applied to annual periods beginning on or after January 1, 2024 where a jurisdiction requires them, and any assurance requirement is that jurisdiction's. Assurance comes from an independent provider the company or group engages.

**Q: How is ISSB reporting support priced?**

A: As of 2026-10-16, per engagement, from the group template and the metrics it asks for. The [pricing page](/us/pricing) shows the monthly tiers, and the fee for this work is confirmed in writing before it starts.

Related services:
- [IFRS reporting packs for US subsidiaries of foreign parents](https://finbryn.com/us/services/month-end-close-reporting/ifrs-reporting-packs-us-subsidiaries)
- [Consolidations](https://finbryn.com/us/services/month-end-close-reporting/consolidations)
- [GHG inventory for Scope 1 and Scope 2](https://finbryn.com/us/services/esg-climate-reporting-support/ghg-inventory-scope-1-2)
- [CSRD readiness for US groups with EU operations](https://finbryn.com/us/services/esg-climate-reporting-support/csrd-readiness-us-groups)

Related guides:
- [ISSB, CSRD, GRI and California SB 253 compared for US companies](https://finbryn.com/us/guides/esg-reporting-frameworks-compared)
- [California SB 253 vs SB 261: who must report, what, and when](https://finbryn.com/us/guides/california-sb-253-vs-sb-261-who-must-report)

## Sources

1. [IFRS Foundation, IFRS S2 Climate-related Disclosures](https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/ifrs-s2-climate-related-disclosures/) (2026-10-16)
2. [IFRS Foundation, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information](https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/ifrs-s1-general-requirements/) (2026-10-16)
3. [IFRS Foundation, ISSB update to the IFRS Advisory Council (April 2026)](https://www.ifrs.org/content/dam/ifrs/meetings/2026/april/ac/ac5-issb-update.pdf) (2026-10-16)
4. [IFRS Foundation, SASB Standards](https://www.ifrs.org/issued-standards/sasb-standards/) (2026-10-16)
5. [IFRS Foundation, Using the SASB Standards to meet the requirements in IFRS S1 (February 2024)](https://www.ifrs.org/content/dam/ifrs/supporting-implementation/ifrs-s1/using-sasb-standards-for-ifrs-s1.pdf) (2026-10-16)
6. [IFRS Foundation, Task Force on Climate-related Financial Disclosures](https://www.ifrs.org/sustainability/tcfd/) (2026-10-16)
7. [IFRS Foundation, Climate Disclosure Standards Board](https://www.ifrs.org/sustainability/climate-disclosure-standards-board/) (2026-10-16)
8. [UN Global Compact, Communication on Progress](https://unglobalcompact.org/participation/report/cop) (2026-10-16)
9. [California Health and Safety Code section 38533 (SB 261), leginfo](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=HSC&sectionNum=38533) (2026-10-16)
10. [SEC, Press Release 2025-58: SEC Votes to End Defense of Climate Disclosure Rules (March 27, 2025)](https://www.sec.gov/newsroom/press-releases/2025-58) (2026-10-16)
11. [Federal Register, Rescission of Climate-Related Disclosure Rules (91 FR 33296, June 3, 2026)](https://www.federalregister.gov/documents/2026/06/03/2026-11091/rescission-of-climate-related-disclosure-rules) (2026-10-16)

Reviewed October 2026

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