A new set of global sustainability standards is being transposed into mandatory reporting requirements around the world, and many organizations do not have a clear line of sight on how and when these regulations will affect their business.
Key Milestones in IFRS S1 & S2 Standards
In June 2023, the International Sustainability Standards Board (ISSB) released the first two International Financial Reporting Standards’ (IFRS) Sustainability Disclosure Standards, IFRS S11 and IFRS S2,2 effective January 1, 2024. Since their release, many countries have elected to leverage these standards into some form of mandatory reporting requirements for companies that meet certain criteria. These standards are critical to understand, not only in organizations within the adopting countries, but also for multinationals and U.S.-based companies with international interests, as they outline how a company prepares and reports its sustainability-related and climate-related risk disclosures.3
As we mark two years since the publication of IFRS S1 and S2 and more than a year into the first reporting cycle, it is helpful for U.S.-based companies to revisit the standards and consider their current sustainability reporting approaches as the global reporting landscape continues to evolve.
As of June 2025, 36 jurisdictions have announced their intentions to adopt or leverage the IFRS S1 and S2 standards into a mandatory sustainability reporting framework. Aligning with IFRS S1 and S2 may offer companies a strategic advantage—not only in the realm of compliance, but also in building trust with stakeholders and future-proofing disclosures.
IFRS Standard Reporting Challenges & Opportunities
If your company has decided to report on IFRS standards, whether due to jurisdictional mandate, strategic business decision, or stakeholder demand, this helpful guide from Forvis Mazars can help you navigate various reporting challenges and follow a prioritized path forward for future IFRS S1 and S2 alignment.
In addition, this resource can help organizations learn about the basics of the IFRS standards, their interoperability with other standards (such as the Corporate Sustainability Reporting Directive (CSRD) requirements or Task Force on Climate-Related Financial Disclosures (TCFD) framework), and transition reliefs available for initial reporting.
IFRS S1 and S2 represent a significant step toward harmonizing globally aligned sustainability reporting. Key themes—such as financial materiality, climate-related risks and opportunities, and measurable performance metrics and targets—are helping to cut through the noise and establish a common baseline. In addition, we are observing growing adoption and momentum for IFRS standards in jurisdictions around the world.
How Forvis Mazars Can Support Your Sustainability Journey
Whether your company is beginning its sustainability journey or you’re a multinational entity seeking to gradually align global reporting practices, the team at Forvis Mazars can help your business navigate the nuances of sustainability reporting requirements. Our professionals have deep sustainability, risk, financial, and regulatory reporting experience and are ready to assist you with IFRS disclosures.
For more information, please reach out to the sustainability team at Forvis Mazars.