Category: Climate insurance · Reviewed by Taylor Watts, Broker · New Business · Last reviewed 2026-06-10
The International Sustainability Standards Board (ISSB) is the standard-setter for global sustainability disclosure standards, established by the IFRS Foundation Trustees at COP26 in Glasgow on 3 November 2021. Its inaugural standards — IFRS S1 “General Requirements” and IFRS S2 “Climate-related Disclosures” — were published on 26 June 2023 and are effective for annual reporting periods beginning on or after 1 January 2024.
Category: Climate insurance Also known as: ISSB; International Sustainability Standards Board; IFRS sustainability standards Established / Date: Announced at COP26, Glasgow, 3 November 2021 Related concepts: IFRS S2 climate disclosure, TCFD, Climate change insurance
The ISSB sits alongside the International Accounting Standards Board (IASB) within the IFRS Foundation governance structure. It is the global standard-setter for sustainability-related financial disclosures, with a remit to develop a comprehensive global baseline of disclosures focused on investor information needs.
The ISSB inherited and consolidated the work of several predecessor bodies, including the Climate Disclosure Standards Board (CDSB, completed 2022), the Value Reporting Foundation (which merged SASB and IIRC in 2021), the Task Force on Climate-related Financial Disclosures (whose monitoring function transferred to IFRS Foundation in October 2023) and the World Economic Forum’s Stakeholder Capitalism Metrics work.
The ISSB Board comprises 14 members drawn from issuers, investors, audit firms, academia and regulators, chaired by Emmanuel Faber (former Danone CEO) and vice-chaired by Sue Lloyd. Its principal offices are in Frankfurt and Montreal, with additional liaison offices in London, San Francisco, Beijing and Tokyo.
The ISSB has no statutory authority itself. Its standards become binding only when adopted by national or supranational regulators or law-makers. The IFRS Foundation Constitution, revised at COP26 to create the ISSB, established the Sustainability Standards Advisory Forum and the Sustainability Consultative Committee to advise the Board.[1]
In the United Kingdom, HM Treasury announced in August 2023 a framework to assess IFRS S1 and S2 for endorsement as UK Sustainability Reporting Standards (UK SRS). The endorsement process is led by the UK Sustainability Disclosure Technical Advisory Committee (TAC) and the UK Sustainability Disclosure Policy and Implementation Committee (PIC). A UK endorsement decision is expected in 2026, after which the FCA will consult on referencing UK SRS S1 and S2 in the Listing Rules.[2]
In the interim, UK-listed issuers continue to apply LR 9.8.6R(8) (FCA PS20/17 and PS21/23) and the Companies Act 2006 s.414CB regime introduced by SI 2022/31, both of which use the TCFD architecture inherited by IFRS S2.[3]
UK insurers, asset managers and pension schemes are preparing for UK SRS adoption by aligning existing TCFD/Companies Act 2006 disclosures to the IFRS S1 and S2 structures. The PRA references ISSB standards as evidence of forward-looking governance in its supervisory dialogue under SS 3/19. Lloyd’s, the Association of British Insurers, the International Underwriting Association and the Investment Association have all issued guidance to support ISSB-aligned reporting.
Beyond the UK, jurisdictions including Australia, Canada, Hong Kong, Japan, Nigeria, Singapore and Brazil have committed to or proceeded with ISSB adoption. This consistency materially helps UK insurer groups that operate internationally and that need a common climate disclosure framework. For UK insureds, IFRS S2-aligned disclosure is becoming the standard input for D&O, PI, financial lines and large property submissions.
UK businesses should anticipate UK SRS adoption following IFRS S2 closely. Investing now in IFRS S1- and S2-aligned governance, scenario analysis, transition plans and emissions reporting positions the business for compliance once UK SRS is in force and reduces the operational cost of producing climate metrics for insurance, banking, customer and ESG-rating purposes.
For insurance, IFRS S2-aligned disclosure offers a coherent narrative the broker can use to negotiate D&O, EIL and large property programmes. It is also the natural place to publish the Climate VaR, scope emissions and transition plan that underwriters will increasingly request.
A UK-listed engineering group prepares its 2025 annual report under voluntary IFRS S1 and S2 alignment, ahead of UK SRS endorsement. The strategic report disclosure under s.414CB is presented in IFRS S2’s four-pillar structure, with scenario analysis under NGFS Net Zero 2050 and Delayed Transition. The disclosure forms the central evidence in the broker’s D&O renewal submission, supporting flat pricing despite a hardening market for industrials.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email hello@apexinsurancebrokers.co.uk, or request a quotation.
Get a quote