The two sets of disclosure standards, launched by The International Sustainability Standards Board (ISSB), will mean that companies will now face greater pressures when disclosing how climate change affects their business.

Under the ISSB rules, IFRS S1 aims to establish a ‘global baseline’ for companies to communicate to investors about the sustainability-related risks and opportunities they face over the short, medium and long term.

IFRS S2, designed to be used alongside IFRS S1, will provide specific climate-related disclosures. It will also mean that businesses will need to disclose their material emissions, with checks by external auditors.