Early Insights into How Global Companies Are Interpreting ISSB Requirements in Practice

Contents

• Why ISSB reporting matters
• Latest updates from the ISSB
• Lessons from the first ISSB-aligned disclosures
• ISSB reporting case studies
• Reporting across multiple jurisdictions
• Where are you in the ISSB reporting journey?

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More than 40 jurisdictions, representing approximately 60% of global GDP, are moving towards ISSB-aligned reporting. Early insights from organisations already reporting show a clear pattern: the value sits in how disclosures inform decision-making, not compliance alone.

Anthesis convened ISSB representatives, early adopters and practitioners to explore practical lessons from first-year reporting, including AASB S2 disclosures in Australia and broader global insights. A consistent message emerged: organisations seeing the greatest value are using ISSB reporting to strengthen governance, improve decision-making, manage risk and build long-term resilience.

Why ISSB reporting matters beyond compliance

The ISSB standards respond to investor demand for consistent, comparable and verifiable sustainability-related financial information. The purpose of IFRS S1 and S2 is not simply to increase reporting obligations. They are designed to help organisations communicate how sustainability-related risks and opportunities may impact cash flows, access to finance and cost of capital.

This is not just investor-grade data — it is board-ready data. Consistent, comparable, verifiable information that boards and senior management can use to assess where they are, where they need to get to, and how to think about strategy, risk management and the metrics and targets they need to drive long-term buisness sustainability.

Neil Stewart, IFRS Foundation

Latest updates from the ISSB

Nature-related disclosures are evolving

The ISSB is progressing work on nature-related disclosures, building on TNFD and the LEAP approach. Rather than introducing an immediate standard, the ISSB recently voted to develop a practice statement to provide greater flexibility for jurisdictions and companies still embedding IFRS S1 and S2. The intention is to build incrementally on existing requirements in IFRS S1 and IFRS S2 without overburdening organisations already navigating first-year implementation challenges.

Human capital and broader topics remain in focus

The ISSB also confirmed that research into human capital-related disclosures has progressed into its next phase, with further decisions expected in the coming months. The ISSB reiterated that companies do not need to wait for topic-specific standards. IFRS S1 already requires disclosure of material information about all sustainability-related risks and opportunities relevant to a company.

SASB enhancements aim to simplify reporting

Consultations are underway across key industries, including Agricultural products, Electric utilities and Meat, Poultry & Dairy. The ISSB emphasised that SASB Standards are intended to simplify reporting by helping companies focus on the sustainability topics and metrics most relevant to their industry and investors, rather than increasing disclosure burden.

Helpful ISSB resources for reporters

The IFRS Foundation also highlighted the growing suite of implementation resources now available, including:

Lessons from the first ISSB-aligned disclosures in the world – Australia’s first AASB S2 reports

Anthesis analysed 15 publicly available first-year AASB S2 reports, identifying clear patterns:

1. Strong structure, limited integration into strategy
   Reports were well structured, but often did not link climate risks to capital allocation, operational planning or long-term decision-making.
2. Scenario analysis is improving
   Most organisations disclosed scenarios, but many stopped short of explaining how they inform strategy or transition planning.
3. Quantification remains an evolving area
   Many organisations prioritised qualitative disclosures, with financial quantification still developing.

Australia’s first wave of reporters have made a serious investment in building the structures required for disclosure, no small achievement given the complexity of first-year implementation. The larger opportunity now is in how those disclosures are used. Risks have been identified, scenarios modelled and governance frameworks established. For organisations preparing to report, building that connection between disclosure and decision-making from the outset will generate significantly more value from the process and better prepare them for the scrutiny that follows.

ISSB Reporting case study: Insights from Lactalis Australia

Lactalis Australia shared a practical and candid perspective on navigating one of Australia’s first mandatory AASB S2 reporting cycles. As a privately owned subsidiary of the French-based Lactalis Group, the Australian entity became one of the first reporters within the wider global group due to Australia’s earlier implementation timeline compared to Europe’s CSRD requirements.

Key challenges

• Limited market benchmarks as a first-year reporter
• Compressed reporting timelines aligned with financial reporting
• Greater reliance on internal governance as a private entity
• A conservative approach prioritising defensible qualitative disclosures

What the process unlocked

• Enhanced governance and accountability
• Stronger cross-functional collaboration
• Improved data ownership and documentation
• Increased internal climate literacy

This is a blessing in disguise. It’s an opportunity to finally get sustainability into a board conversation that isn’t just a tick and flick. The iterative nature of this standard means people actually have to pay attention.

Sarah McElholum, Lactalis Australia

With disclosures now forming part of business as usual, Lactalis also confirmed that year two work began immediately, with focus on Scope 3, quantification and assurance readiness. This reinforces a practical point for other reporters: organisations need to plan beyond first-year disclosure and build capability for repeatable, assured reporting.

ISSB Reporting case study: Insights from Orbia

Orbia grounded the discussion in practical experience, drawing on its first year of disclosure as a purpose-led multinational operating across more than 50 countries and five business groups spanning Building & Infrastructure, Polymer Solutions, Precision Agriculture, Fluor & Energy Materials and Connectivity Solutions.

Orbia’s experience highlighted the importance of building sustainability reporting as a long-term strategic capability, rather than treating it as a standalone compliance exercise. The organisation entered its first year of ISSB reporting in Mexico with strong foundations already in place, including board-level sustainability governance and SBTi-aligned targets across Scope 1, 2 and 3 emissions. However, despite these strong foundations, first-year reporting still presented significant challenges.

Key challenges

• Data and quantification
  New data requirements and financial impact modelling required expanding existing data governance structures and strengthening/developing new capabilities.
• Governance and change management
  Cross-functional coordination, broader internal engagement and clear governance structures were critical.
• Materiality in a diversified business
  Initial risk lists were extensive and required refinement through an investor-focused lens.

This first year of reporting, it’s not just making our disclosures better and more useful for our external audiences, particularly investors, but also making our own decisions better, specifically on how we manage sustainability-related risks and identifying opportunities and acting on them.

Helena Garcia, Orbia

Three common ISSB reporting challenges across markets

As organisations embed ISSB reporting into core business processes, a consistent set of challenges is emerging across markets. These reflect the practical realities of aligning sustainability data, governance and reporting with financial and investor expectations.

1. Data availability and Scope 3
   Organisations are still building reliable value chain data. Proportionality allows for estimates where needed.
2. Timing alignment
   Sustainability reporting is converging with financial reporting timelines, requiring earlier coordination.
3. Investor-focused narrative
   Effective reporting focuses on material risks and opportunities, not exhaustive disclosure.

ISSB reporting across multiple jurisdictions

ISSB adoption is supporting the development of a global baseline for sustainability reporting. This allows organisations to gather data once and apply it across jurisdictions, improving consistency in disclosures and reducing duplication in reporting processes. For multinational organisations, this also provides a clearer foundation for aligning regional requirements and managing increasing reporting complexity.

Reporting is an ongoing process

It is important to remember – first-year reporting marks the starting point rather than the end state. Organisations are building capability over time, strengthening governance, improving data quality and refining how disclosures connect to financial and strategic decision-making. The focus now is on improving depth, consistency and assurance readiness across future reporting cycles.

Where are you in the ISSB reporting journey?

Not all companies are in the same place. Here is how Anthesis thinks about the stages of the ISSB journey and what each demands:

Stage	Where You Are	What to Focus On	How Anthesis Helps
Stage 1 Foundation Building	Pre-ISSB; voluntary ESG reporter; TCFD adopter	Gap analysis; governance alignment; materiality assessment; data inventory	ISSB Readiness Assessment; Materiality Assessments; TCFD-to-ISSB Transition
Stage 2 First-Year Compliance	Mandatory or voluntary first reporter; 2025–26 go-live	IFRS S1/S2 disclosure drafting; financial impact quantification; scenario analysis	End-to-end disclosure support; climate scenario modelling; assurance readiness
Stage 3 Maturation & Integration	Post-first-report; moving toward full S1; assurance preparation	Expand beyond climate; integrate into risk registers; prepare for limited assurance	Nature & social materiality; integrated reporting strategy; assurance support, Climate Transition Plans, Emission Reduction Plans
Stage 4 Strategic Value Creation	Advanced reporters linking ISSB data to strategy and capital allocation	Board-ready dashboards; investor-grade data; transition planning; global passporting	Sustainability strategy integration; investor engagement; multi-jurisdiction efficiency

Most companies in 2025–26 go-live jurisdictions are in Stages 1 or 2. Companies in markets with later timelines can learn from the first wave of reports now available, but they should start building the foundations now.

How Anthesis Can Support Your ISSB Journey

Anthesis supports organisations at every stage of the ISSB journey – from initial gap analysis through to financial quantification, scenario analysis, assurance readiness and multi-jurisdiction strategy. With over 1,400 experts across 23 countries, official IFRS Sustainability Disclosure Standards licensing and membership of the IFRS Sustainability Alliance, we bring the technical depth and practical experience to move beyond compliance.

If you’d like to sense-check your approach or don’t know where to start, get in touch.