Sustainability Reporting in Transition: ISSB’s Climate and Industry Guidance

Sustainability reporting has shifted from being a voluntary add-on to a strategic necessity. Investors, regulators, and other stakeholders increasingly demand standardized, comparable disclosures on environmental, social, and governance (ESG) matters. To meet this need, the International Sustainability Standards Board (ISSB) has developed a suite of sustainability-related disclosure standards that complement the IFRS Accounting Standards.

In 2023, ISSB issued its inaugural standards: IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures). By 2025, the ISSB had built on this foundation, releasing additional exposure drafts and guidance:

• April 2025: Exposure Draft on Greenhouse Gas (GHG) Emissions.

• June 2025: Transition Plan Disclosure Guidance.

• July 2025: Industry-specific guidance, including proposed adoption of SASB Standards.

For the Caribbean, where climate vulnerability is high and industries such as tourism, energy, agriculture, and financial services are directly affected, these developments are especially relevant.

Why ISSB Matters

The ISSB was established to provide a global baseline for sustainability reporting, ensuring:

• Comparability across markets;

• Transparency for investors and regulators;

• Connectivity with financial statements prepared under IFRS.

This global baseline is designed to integrate with jurisdictional requirements (such as EU’s CSRD or US SEC climate rules) while reducing reporting fragmentation.

Key ISSB Updates in 2025

1. GHG Emissions Exposure Draft (April 2025)

• Introduces standardized guidance on measuring and disclosing Scope 1, 2, and 3 GHG emissions.

• Aligns with the GHG Protocol but adds clarity on materiality thresholds and sector-specific methodologies.

• Critical for industries with high carbon footprints, such as energy and transportation.

2. Transition Plan Guidance (June 2025)

• Provides a framework for disclosing corporate climate transition plans.

• Requires companies to explain assumptions, timelines, and investment strategies.

• Investors gain insights into the credibility and feasibility of transition strategies.

3. Industry Guidance and SASB Standards (July 2025)

• ISSB proposes adopting SASB Standards to provide industry-specific metrics.

• Sectors covered include oil and gas, tourism, manufacturing, and financial services.

• Companies must report on sector-specific risks and opportunities alongside general disclosures.

Implications for Caribbean Businesses

Climate Vulnerability

• Caribbean nations face rising sea levels, hurricanes, and temperature shifts.

• ISSB climate disclosures help companies articulate resilience strategies to investors.

Tourism Sector

• Hotels and resorts must disclose energy use, water management, and climate resilience strategies.

• ISSB industry guidance will require detailed sustainability metrics tied to tourism.

Energy Sector

• Oil and gas operations in Trinidad & Tobago and Guyana must disclose transition plans, emissions, and climate risks.

• Investors will demand alignment with global low-carbon pathways.

Agriculture and Manufacturing

• Businesses must report on supply chain resilience, emissions, and resource use.

• Industry metrics will help attract sustainable financing.

Financial Services

• Banks and insurers must disclose financed emissions, transition risks, and climate strategies.

• Enhanced transparency will be key for international partnerships.

Hypothetical Case Studies

Case 1: Jamaican Bank

• Under ISSB guidance, the bank discloses financed emissions from its loan portfolio.

• This transparency helps attract green financing from international lenders.

Case 2: Trinidad Oil Company

• Publishes a transition plan outlining investment in renewable projects.

• Investors assess credibility through ISSB-aligned disclosures.

Case 3: Caribbean Hotel Group

• Discloses climate adaptation investments, including hurricane-resilient infrastructure.

• Enhances trust with global travel partners and investors.

Action Plan for Businesses

1. Gap Analysis

   • Compare existing ESG disclosures with ISSB standards.

   • Identify gaps in emissions reporting and industry metrics.

2. Data Infrastructure

   • Establish systems for measuring Scope 1–3 GHG emissions.

   • Collect industry-specific sustainability data.

3. Governance and Oversight

   • Strengthen board oversight of sustainability strategies.

   • Integrate climate risk into enterprise risk management.

4. Stakeholder Engagement

   • Communicate transition plans clearly to investors, regulators, and communities.

5. Capacity Building

   • Train sustainability and finance teams to prepare ISSB-aligned reports.

How Dawgen Global Can Help

At Dawgen Global, we provide tailored advisory support for sustainability reporting, including:

• ISSB Readiness Reviews: Benchmarking current practices against IFRS S1, S2, and emerging guidance.

• Climate Risk Integration: Embedding transition plan disclosures into strategic planning.

• Industry Metrics: Helping companies adopt SASB-based disclosures.

• Training & Capacity Building: Equipping boards and teams with ISSB expertise.

• Audit & Assurance: Providing independent assurance on sustainability data.

Conclusion

The ISSB’s 2025 updates mark a new chapter in global sustainability reporting. For Caribbean businesses, they offer the chance to demonstrate resilience, attract sustainable investment, and build global credibility.

Early adopters will lead the way in shaping investor perceptions and positioning the region as a hub for sustainable growth.

📣 Call to Action

At Dawgen Global, we help Caribbean companies navigate ISSB standards and design robust sustainability disclosures. Contact our team to strengthen your reporting and investor trust.

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