Global Adoption of IFRS Sustainability Disclosure Standards: A Turning Point for Corporate Transparency

In an era of rising environmental, social, and governance (ESG) expectations, the call for consistent, comparable, and verifiable sustainability disclosures is louder than ever. The International Financial Reporting Standards (IFRS) Foundation—through its International Sustainability Standards Board (ISSB)—is answering that call with a global framework. The IFRS Sustainability Disclosure Standards (IFRS SDS) are rapidly gaining momentum, with jurisdictions worldwide either adopting, adapting, or aligning with these standards.

As one of the Caribbean’s leading multidisciplinary professional service firms, Dawgen Global recognizes the transformative potential of these standards and stands ready to guide businesses through this critical shift toward sustainable value creation.

The ISSB’s Vision: Global Baseline for Sustainability Reporting

Launched in 2021, the ISSB set out to establish a comprehensive global baseline for sustainability reporting. The inaugural standards—IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures)—were published in June 2023.

These standards build on frameworks developed by the Task Force on Climate-related Financial Disclosures (TCFD), SASB, and the CDSB. IFRS S1 sets the foundation, requiring disclosure of sustainability-related risks and opportunities across sectors. IFRS S2 narrows in on climate, aligning closely with TCFD pillars: governance, strategy, risk management, and metrics/targets.

Global Uptake: A Snapshot by Jurisdiction

According to the IFRS Foundation’s dynamic tracker, more than 25 jurisdictions—representing over 55% of global GDP and 40% of global emissions—have publicly committed to introducing or considering adoption of the ISSB standards.

Key Highlights:

• United Kingdom: Announced plans to endorse the ISSB standards for use by listed companies, with consultation processes underway.

• Canada: The Canadian Sustainability Standards Board (CSSB) is adapting the IFRS SDS for national implementation by 2025.

• Australia: The Australian Accounting Standards Board (AASB) issued draft sustainability reporting standards based on IFRS S1 and S2.

• Nigeria and Kenya: Among the first African countries to commit to full-scale ISSB adoption.

• Japan: Endorsing a gradual approach through its Sustainability Standards Board of Japan (SSBJ).

• Brazil: Recently approved a roadmap to mandate climate disclosures aligned with IFRS S2 starting in 2026.

Other jurisdictions such as Chile, Singapore, Malaysia, South Korea, and New Zealand have initiated consultations or working groups to assess implementation pathways.

Caribbean Outlook: An Emerging Conversation

While no Caribbean jurisdiction has officially adopted the ISSB standards yet, Dawgen Global believes this is a strategic inflection point. With growing investor scrutiny, global capital market integration, and regional commitments under the Paris Agreement, the Caribbean must prepare to engage with these disclosure frameworks.

Governments, regulators, and private sector actors can take proactive steps now by:

• Establishing local sustainability standard boards or advisory committees

• Conducting industry consultations on readiness and sectoral impact

• Piloting ISSB-aligned reporting in key industries (e.g., tourism, energy, agriculture)

• Partnering with firms like Dawgen Global to upskill professionals and implement best practices

Why This Matters to Businesses

The ISSB standards are not just compliance exercises—they are tools to unlock long-term value. Businesses that embrace IFRS SDS will be better positioned to:

• Attract sustainable finance and ESG-conscious investors

• Strengthen resilience to environmental and regulatory risks

• Demonstrate accountability to stakeholders

• Benchmark against global peers

• Differentiate through transparent sustainability leadership

How Dawgen Global Can Help

At Dawgen Global, we are committed to helping Caribbean and international businesses navigate this new disclosure landscape. Our multidisciplinary teams—including accountants, risk specialists, legal advisors, and sustainability consultants—offer:

• Gap assessments against ISSB standards

• Materiality mapping and ESG data strategy

• Training workshops and executive briefings

• Assurance on sustainability reports

• Integrated reporting advisory

As the sustainability reporting frontier evolves, we are your trusted partner to stay ahead of the curve.

Conclusion

The adoption of IFRS Sustainability Disclosure Standards signals a new era in corporate transparency. With regulatory momentum building across continents, businesses—especially those operating in interconnected global markets—must act now. For the Caribbean, it’s not a question of if but when and how these standards will take root.

Dawgen Global encourages regional stakeholders to be proactive, strategic, and forward-looking in their ESG journey. Together, we can build a resilient, sustainable, and thriving future.

Next Step!