IFRS S1 and IFRS S2 (ISSB Standards)IFRS S1 / S2
The Task Force on Climate-related Financial Disclosures was disbanded in October 2023 and monitoring passed to the IFRS Foundation. IFRS S2 fully incorporates the TCFD recommendations. IFRS S1 and S2 are standards, not law: obligations arise only where a jurisdiction, stock exchange or contract adopts them.
- Issued
- June 2023
- By the ISSB
- Effective for periods from
- 1 January 2024
- IFRS S1
- General requirements
- IFRS S2
- Climate-related disclosures
- Fully incorporates TCFD
- TCFD
- Disbanded October 2023
- Monitoring moved to the IFRS Foundation
- Jurisdictions
- 30+ adopting
- 21 in effect as of early 2026
Where these figures come from
TCFD was disbanded in 2023; the standards carry no penalty of their own
The Task Force on Climate-related Financial Disclosures was disbanded in October 2023 and monitoring transferred to the IFRS Foundation. The FSB described the ISSB standards as the culmination of the TCFD's work, and IFRS S2 fully integrates its recommendations. A request for TCFD reporting in 2026 corresponds to IFRS S2. IFRS S1 and S2 are not law anywhere by themselves. Deadlines and penalties come from the jurisdiction that adopted them.
IFRS S1 sets general requirements for disclosing sustainability-related financial information; IFRS S2 applies them to climate and fully incorporates the TCFD recommendations. Both were issued by the ISSB in June 2023 and apply to annual reporting periods beginning on or after 1 January 2024. They are standards, not law: they create obligations only where a jurisdiction, stock exchange or contract adopts them. More than 30 jurisdictions have adopted or are finalising adoption, with 21 in effect as of early 2026.
Standards are not law until adopted
The ISSB cannot impose penalties. A national regulator that has adopted the standards can enforce them under its own statute and timetable.
Whether IFRS S1 and S2 are mandatory for a company depends on whether any jurisdiction it reports in has adopted them, and on what timetable. Adoption status differs by market and is still changing.
Relationship to EU CSRD and ESRS
The EU regime runs through CSRD and the ESRS rather than through direct ISSB adoption, with interoperability work between the two frameworks. A group reporting under CSRD in Europe and under an ISSB-adopting regime elsewhere has two related but distinct reporting obligations.
Penalties
None from the standards themselves. Every consequence comes from the adopting jurisdiction's own law.
No penalty attaches to IFRS S1 or S2 directly
The ISSB issues standards; it has no enforcement powers. Obligations and sanctions arise only where a jurisdiction, listing rule or contract incorporates them.
Does this apply to you?
Determined by adoption status in each reporting jurisdiction, plus listing rules and contractual commitments.
- Jurisdictions that have adopted or mandated ISSB-aligned reporting — 21 in effect as of early 2026
- Stock exchange listing requirements referencing IFRS S1 or S2
- Contractual or investor commitments, including lender and customer requirements
Not sure whether IFRS S1 / S2 catches you?
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Common questions
- Is TCFD still a thing?
- Not as a body. The Task Force was disbanded in October 2023 and monitoring passed to the IFRS Foundation. Its recommendations live on inside IFRS S2, which fully incorporates them. A request for TCFD reporting corresponds to IFRS S2.
- Are IFRS S1 and S2 mandatory?
- Only where a jurisdiction, stock exchange or contract makes them mandatory. On their own they are voluntary standards. More than 30 jurisdictions have adopted or are finalising adoption, with 21 in effect as of early 2026.
- What is the penalty for not following IFRS S1 or S2?
- There is none from the standards themselves. Any penalty comes from the law of the jurisdiction that adopted them.