The 2024 IFRS Progress Report: A Milestone in Corporate Climate Reporting

The International Financial Reporting Standards (IFRS) Foundation’s recently released 2024 Progress Report on Corporate Climate Reporting marks a significant step forward in global sustainability practices. Presented to the Financial Stability Board (FSB), the report highlights transformative changes in corporate climate-related disclosures, underscoring the momentum generated by the integration of Task Force on Climate-related Financial Disclosures (TCFD) recommendations into the International Sustainability Standards Board (ISSB) Standards. 

This blog explores the key insights from the report, with a spotlight on digital reporting, global adoption of ISSB Standards, and how IRIS ESG Consulting is empowering businesses to lead in responsible reporting and sustainability. 

1. Integration of TCFD Recommendations into ISSB Standards

The integration of TCFD recommendations into the ISSB’s inaugural standards—IFRS S1 (General Sustainability-related Financial Disclosures) and IFRS S2 (Climate-related Disclosures)—is a critical milestone. By building on TCFD’s four core pillars (governance, strategy, risk management, and metrics & targets), ISSB has ensured a seamless transition for companies already familiar with TCFD frameworks. 

This alignment is not merely an upgrade; it represents an evolution. The ISSB Standards expand beyond TCFD’s climate focus, requiring disclosures on broader sustainability-related risks and opportunities. The report reveals that over 1,000 companies referenced ISSB Standards in their reports between October 2023 and March 2024, signaling a growing commitment to comprehensive sustainability reporting. 

2. Global Adoption of ISSB Standards

The report highlights significant progress in jurisdictions embracing ISSB Standards: 

• 30 jurisdictions, representing 57% of global GDP, are integrating ISSB Standards into their regulatory frameworks. 

• These jurisdictions account for over 40% of global market capitalization and more than half of global greenhouse gas emissions. 

Regions like Africa, Latin America, and Asia-Oceania are introducing sustainability-related disclosure requirements for the first time, showcasing a truly global movement. 

3. Digital Reporting: The Next Frontier

One of the report’s standout themes is the transformative potential of digital reporting. By standardizing and tagging disclosures, companies can enhance transparency, comparability, and accessibility of climate-related data. 

Key benefits include: 

• For Investors: Access to high-quality, decision-useful data. 

• Interoperability: Consistent disclosures across jurisdictions. 

• Efficiency: Reduced manual effort in reporting processes. 

The IFRS Foundation’s emphasis on digitalization aligns with IRIS’s vision of driving innovation in reporting through XBRL-enabled solutions. 

At IRIS, we are pioneers in delivering advanced regulatory compliance solutions, leveraging the power of XBRL taxonomies to meet global standards. With over 20 years of experience partnering with regulators and businesses worldwide, we drive transparency, accountability, and sustainability in financial reporting. 

Our IRIS ESG Consulting division offers comprehensive services to enable organizations to align their ESG initiatives with international frameworks such as ISSB Standards, ESRS and GRI, and build a sustainable future. 

 

• Transparent ESG Reporting: Tailored frameworks that ensure robust and reliable sustainability disclosures. 

• XBRL-Enabled Solutions: Cutting-edge digital reporting tools to simplify compliance. 

• Integrating ESG & Sustainability into Business Strategy: Embedding sustainability into organizational DNA. 

• Materiality Assessments: Identifying and prioritizing critical ESG issues for impactful decision-making. 

• Supply Chain Sustainability Management: Ensuring end-to-end sustainability across supply chains. 

• Responsible Investment Advisory: Helping companies make ethical and sustainable investment decisions. 

IRIS is committed to guiding businesses in setting new benchmarks for responsible reporting and regulatory compliance, empowering them to thrive in a world increasingly driven by sustainability. 

Despite notable progress, gaps remain: 

• Many companies fail to disclose sufficient governance, strategy, and risk management details. 

• Lack of material information impacts the ability of investors to assess climate-related risks effectively. 

IRIS ESG Consulting addresses these challenges with tailored solutions, ensuring organizations meet and exceed regulatory and investor expectations. 

The 2024 IFRS Progress Report underscores the pivotal role of ISSB Standards as a global baseline for sustainability disclosures. As businesses worldwide align with these standards, transparency, comparability, and trust will define the future of climate-related reporting. 

With IRIS ESG Consulting by your side, your organization can lead the charge: 

• Seamlessly transition to ISSB-aligned reporting. 

• Harness digital reporting for unparalleled efficiency. 

• Embed ESG principles into your core strategy. 

Together, we can transform corporate reporting into a powerful tool for sustainability and progress. 

The path forward is clear. IRIS ESG Consulting is here to help you every step of the way, ensuring you set new benchmarks for transparency and accountability in the corporate world.