Core Insights - The article emphasizes the growing importance of sustainable development in the global economy, highlighting the increasing demand for sustainability-related disclosures in capital markets [2][4]. - The establishment of the International Sustainability Standards Board (ISSB) and the release of the International Financial Reporting Sustainability Disclosure Standards (ISDS) mark a significant advancement in global sustainability reporting [4][14]. Development History - The ISSB was established in November 2021 during the 26th UN Climate Conference, with the IFRS Foundation announcing its formation [5]. - In March 2022, the ISSB released two exposure drafts for ISDS, seeking public feedback until July 29, 2022, leading to the final issuance of S1 and S2 standards in June 2023, set to take effect on January 1, 2024 [5][6]. Key Features of ISDS - ISDS aims to provide a global baseline for sustainability disclosures, focusing on investor needs, financial materiality, and interoperability with other frameworks like the TCFD [4][14]. - The standards include general requirements for sustainability-related financial disclosures and specific guidelines for climate-related disclosures [4][11]. Application Scope - ISDS is designed for a wide range of entities, including multinational corporations, public companies, large state-owned enterprises, and SMEs, facilitating compliance with various sustainability reporting requirements globally [14]. - The framework aims to enhance transparency for investors and regulators, helping companies manage sustainability risks within their supply and value chains [14]. Future Plans - The ISSB plans to develop industry-specific sustainability disclosure standards covering broader topics such as biodiversity and water resource management, ensuring precise disclosures for different sectors [11][12]. - Ongoing collaboration with global organizations aims to address implementation challenges and enhance the market adaptability of ISDS [12].