The IFRS Foundation has announced a five-year operating and financing plan for the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB). The plan is intended to strengthen the Foundation’s capacity to develop and maintain globally recognized accounting and sustainability disclosure standards. It comes as jurisdictions worldwide continue to adopt or use ISSB Standards.
Key Highlights
The announcement includes:
- A five-year operating and financing plan covering the IASB and ISSB
- Funding arrangements intended to support the ISSB’s priorities through 2031
- A new ISSB office in Geneva, expected to open in mid-2027
- Continued ISSB operations in Beijing, Frankfurt, Montreal, and Tokyo
- Proposed amendments to the IFRS Foundation Constitution
- A public consultation on the constitutional amendments, open until November 16, 2026
The ISSB’s Frankfurt office will continue to serve as its hub for engagement with the European Union.
More Than 45 Jurisdictions Are Using ISSB Standards
According to the IFRS Foundation, more than 45 jurisdictions are using ISSB Standards. Companies in 18 jurisdictions are expected to issue ISSB-aligned reports by 2027. The Foundation’s published jurisdictional tracker currently provides profiles or regulatory snapshots for 36 named jurisdictions, reflecting differing stages and forms of adoption or other use.
The ISSB has issued two principal sustainability disclosure standards:
- IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information establishes general requirements for disclosing sustainability-related risks and opportunities that could affect an organization’s prospects.
- IFRS S2 Climate-related Disclosures establishes requirements for disclosing climate-related risks and opportunities.
Together, IFRS S1 and IFRS S2 provide an investor-focused global baseline for sustainability-related financial disclosure. Individual jurisdictions determine whether and how these standards are incorporated into local reporting requirements.
Does the Five-Year Plan Change IFRS S1 or IFRS S2?
No. The announcement does not amend IFRS S1 or IFRS S2, and it does not introduce new corporate reporting requirements.
The plan focuses on how the IFRS Foundation will fund, govern, and support the IASB and ISSB over the next five years. It nevertheless signals continued institutional support for the development and wider use of IFRS Accounting Standards and ISSB Standards.
What Wider ISSB Adoption Means for Reporting Teams
As jurisdictions introduce ISSB-aligned requirements, organizations may need to manage sustainability-related financial information across multiple regulatory environments.
Reporting teams may need to address:
- Different jurisdictional requirements and implementation timelines
- Sustainability-related risks and opportunities
- Climate-related metrics, targets, and narrative disclosures
- Consistency between sustainability disclosures and financial statements
- Connections between climate assumptions, strategy, risks, and financial effects
- Review, approval, evidence, and assurance requirements
These requirements increase the need for reporting processes that connect financial and sustainability information.
Why Connected Financial and Sustainability Disclosure Matters
Financial statements and sustainability-related financial disclosures are intended to provide investors with connected information about an organization’s performance, risks, opportunities, and prospects.
However, many organizations still prepare financial and sustainability information through separate teams, documents, and systems. This can create inconsistencies between reported metrics, financial assumptions, climate-related risks, strategic narratives, and corporate targets.
A connected reporting process helps organizations maintain alignment across:
- Financial statements and related notes
- Sustainability and climate disclosures
- Management commentary
- Reported risks and opportunities
- Metrics, targets, and transition plans
- Supporting evidence and approvals
Learn more about financial and sustainability reporting frameworks supported by EcoActive.
How EcoActive Supports ISSB-Aligned Disclosure
EcoActive is an AI-native platform for unified financial and ESG disclosure management. It helps organizations prepare governed, traceable, and audit-ready disclosures across evolving reporting requirements.
Organizations can use EcoActive to:
Manage IFRS S1- and IFRS S2-aligned disclosures
Coordinate sustainability data, metrics, targets, and narratives
Connect financial and sustainability reporting processes
Maintain governed review and approval workflows
Preserve traceability from source information to final disclosure
Support human oversight across AI-assisted reporting activities
EcoActive helps reporting teams maintain consistency across numbers and narratives while keeping human reviewers in control.
Explore ESG reporting with EcoActive and financial disclosure management.
How Organizations Can Prepare for Wider ISSB Adoption
Organizations should monitor how the jurisdictions in which they operate adopt or align with ISSB Standards.
They should also assess whether their current reporting processes can:
- Identify applicable jurisdictional requirements.
- Connect sustainability-related risks with financial information.
- Maintain consistent data and narratives across disclosures.
- Track sources, calculations, changes, reviews, and approvals.
- Support assurance and audit-readiness.
- Adapt as reporting requirements continue to evolve.
Preparing these foundations early can reduce duplication and strengthen confidence in reported information.
Frequently Asked Questions
What has the IFRS Foundation announced?
The IFRS Foundation has approved a five-year operating and financing plan for the IASB and ISSB. It has also announced plans to open a new ISSB office in Geneva and proposed targeted amendments to the Foundation’s Constitution.
Does the announcement introduce new disclosure requirements?
No. The announcement does not introduce new requirements or amend IFRS S1 or IFRS S2. It focuses on the IFRS Foundation’s operations, financing, governance, and capacity to support its two standard-setting boards.
How widely are ISSB Standards being used?
According to the IFRS Foundation, more than 45 jurisdictions are using ISSB Standards. Companies in 18 jurisdictions are expected to issue ISSB-aligned reports by 2027.
What is the difference between the IASB and ISSB?
The IASB develops IFRS Accounting Standards. The ISSB develops IFRS Sustainability Disclosure Standards. Both boards operate under the governance of the IFRS Foundation.
What is IFRS S1?
IFRS S1 establishes general requirements for disclosing sustainability-related risks and opportunities that could reasonably be expected to affect an organization’s prospects.
What is IFRS S2?
IFRS S2 establishes requirements for disclosing climate-related risks and opportunities. It covers governance, strategy, risk management, and performance measured through relevant metrics and targets.
How can organizations prepare for ISSB-aligned reporting?
Organizations can begin by identifying applicable requirements, improving sustainability-data governance, connecting financial and sustainability information, and establishing traceable review and approval processes.
Manage financial and sustainability disclosures through one governed, AI-native platform.
Prepare Connected, Audit-Ready Disclosures with EcoActive
