The proposals reflect the disclosure requirements in the ISSB’s first two standards, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures issued in June 2023.

A common digital taxonomy is necessary to facilitate structured digital reporting of sustainability-related financial information prepared applying the ISSB standards, to improve transparency for investors.

These elements enable an entity to tag information about its sustainability-related risks and opportunities in its general purpose financial reports. Tagging makes this information machine-readable.