{"id":2814,"date":"2026-02-23T13:07:02","date_gmt":"2026-02-23T11:07:02","guid":{"rendered":"https:\/\/www.cooperategreen.com\/the-rise-of-the-issb-and-its-relationship-to-the-csrd\/"},"modified":"2026-02-23T14:22:54","modified_gmt":"2026-02-23T12:22:54","slug":"the-rise-of-the-issb-and-its-relationship-to-the-csrd","status":"publish","type":"post","link":"https:\/\/cooperategreen.com\/en\/the-rise-of-the-issb-and-its-relationship-to-the-csrd\/","title":{"rendered":"The rise of the ISSB and its relationship to the CSRD"},"content":{"rendered":"<p>The ISSB (International Sustainability Standards Board) was created by the IFRS Foundation with the goal of creating a globally uniform framework for sustainability reporting, similar to the way IFRS harmonizes financial reporting.<\/p>\n<p>The driving forces behind its creation:<\/p>\n<ul>\n<li>Fragmentation of ESG standards worldwide<\/li>\n<li>Increasing investor demand for consistent, comparable data<\/li>\n<li>Need for integration between financial reporting and sustainability inform<img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-2811 alignright\" src=\"https:\/\/www.cooperategreen.com\/wp-content\/uploads\/2026\/02\/ESG-in-a-day-Cursus-300x169.png\" alt=\"Esg in a day course\" width=\"358\" height=\"201\" srcset=\"https:\/\/cooperategreen.com\/wp-content\/uploads\/2026\/02\/ESG-in-a-day-Cursus-300x169.png 300w, https:\/\/cooperategreen.com\/wp-content\/uploads\/2026\/02\/ESG-in-a-day-Cursus-1024x576.png 1024w, https:\/\/cooperategreen.com\/wp-content\/uploads\/2026\/02\/ESG-in-a-day-Cursus-768x432.png 768w, https:\/\/cooperategreen.com\/wp-content\/uploads\/2026\/02\/ESG-in-a-day-Cursus-1536x864.png 1536w, https:\/\/cooperategreen.com\/wp-content\/uploads\/2026\/02\/ESG-in-a-day-Cursus.png 1920w\" sizes=\"(max-width: 358px) 100vw, 358px\" \/>ation<\/li>\n<\/ul>\n<p>The ISSB builds on frameworks such as:<\/p>\n<ul>\n<li>SASB Standards<\/li>\n<li>TCFD recommendations<\/li>\n<li>CSDB<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>The standards<\/strong><\/h3>\n<p>In 2023, the ISSB published its first two standards:<\/p>\n<ul>\n<li><strong>IFRS S1 &#8211; General Requirements for Disclosure of Sustainability-related Financial Information.<\/strong><\/li>\n<\/ul>\n<p>Defines how organizations should report sustainability risks and opportunities that are <em>financially material<\/em>.<\/p>\n<ul>\n<li><strong>IFRS S2 &#8211; Climate-related Disclosures<\/strong><\/li>\n<\/ul>\n<p>Strongly aligns with TCFD and focuses specifically on climate-related risks, opportunities, governance, strategy and metrics\/targets.<\/p>\n<h3><strong>Adoption Worldwide<\/strong><\/h3>\n<p>The ISSB is mostly embraced outside Europe, including:<\/p>\n<ul>\n<li>United Kingdom (mandatory adoption announced)<\/li>\n<li>Canada<\/li>\n<li>Australia<\/li>\n<li>Singapore<\/li>\n<li>Japan<\/li>\n<\/ul>\n<p>The standards position themselves as a foundation upon which countries can build additional requirements.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Corporate Sustainability Reporting Directive<\/strong><\/h2>\n<p>The <strong>CSRD<\/strong> is a European directive that was intended as part of the European Green Deal to establish a sustainability reporting requirement for companies.<\/p>\n<p>It required ~50,000 companies in and outside the EU to report according to the <strong>ESRS<\/strong>.<\/p>\n<h3><strong>Core principles<\/strong><\/h3>\n<ul>\n<li><strong>Dual materiality<\/strong>:\n<ul>\n<li><em>Financial materiality<\/em> \u2192 impact on company value<\/li>\n<li><em>Impact materiality<\/em> \u2192 company&#8217;s impact on people\/environment<\/li>\n<\/ul>\n<\/li>\n<li><strong>Broad scope<\/strong>: environmental, social, governance, value chain, strategy, leadership, and performance targets.<\/li>\n<\/ul>\n<p>The CSRD is thus more comprehensive, policy-driven and legally binding within the EU.<\/p>\n<h2><\/h2>\n<h2><strong>ISSB vs CSRD<\/strong><\/h2>\n<h3><strong>Overview at a glance<\/strong><\/h3>\n<table>\n<thead>\n<tr>\n<th><strong>Aspect<\/strong><\/th>\n<th><strong>ISSB\/IFRS<\/strong><\/th>\n<th><strong>CSRD \/ ESRS<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Legal status<\/strong><\/td>\n<td>Not intrinsically mandatory; depends on local law<\/td>\n<td>Legally mandatory within the EU<\/td>\n<\/tr>\n<tr>\n<td><strong>Materiality<\/strong><\/td>\n<td><em>Single financial materiality<\/em><\/td>\n<td><em>Double materiality<\/em><\/td>\n<\/tr>\n<tr>\n<td><strong>Scope<\/strong><\/td>\n<td>Focus on financially relevant sustainability information; heavy on climate<\/td>\n<td>Very broad: E, S &amp; G, value chain, strategy, policy<\/td>\n<\/tr>\n<tr>\n<td><strong>Level of detail<\/strong><\/td>\n<td>Relatively concise, based on investment relevance<\/td>\n<td>Much more detailed, including policies, objectives and processes<\/td>\n<\/tr>\n<tr>\n<td><strong>Target Audience<\/strong><\/td>\n<td>Investors and capital markets.<\/td>\n<td>Investors, society, policy makers<\/td>\n<\/tr>\n<tr>\n<td><strong>Assurance<\/strong><\/td>\n<td>Not required by default<\/td>\n<td>Mandatory (initially limited assurance)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><strong>How do ISSB and CSRD relate to each other?<\/strong><\/h3>\n<p>These frameworks are not meant to be considered competitive but should be seen as complementary to ensure completeness and interoperability of sustainability reporting.<\/p>\n<ul>\n<li>The ISSB provides a <em>global<\/em> benchmark.<\/li>\n<li>The CSRD is <em>regional<\/em> and more comprehensive, but recognizes the ISSB as a useful basis.<\/li>\n<li>Definitions are partially aligned especially around climate (TCFD structure), although the ISSB is still making adjustments to create more consistency with the ESRS.<\/li>\n<\/ul>\n<h2><\/h2>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p>With the CSRD, the EU has set a new standard in terms of depth, legal obligation and social responsibility. At the same time, the emergence of the ISSB marks a major step toward global consistency in sustainability reporting, especially focused on investors&#8217; information needs. <\/p>\n<p><strong>ISSB = global baseline<\/strong><\/p>\n<p><strong>CSRD = most comprehensive and mandatory reporting methodology in Europe<\/strong><\/p>\n<p>Organizations operating in multiple regions will likely need to understand and (partially) apply both frameworks. By investing early in data management, materiality analysis and internal control processes, companies can prepare for a future where sustainability is as structured and controlled as financial reporting. <\/p>\n<p>Want to know more about how your organization can prepare for these changes? Cooperate Green provides direction in setting up a strategy, reporting and internal processes to future-proof it. Contact our colleague:  <\/p>\n<figure id=\"attachment_2668\" aria-describedby=\"caption-attachment-2668\" style=\"width: 170px\" class=\"wp-caption alignleft\"><img decoding=\"async\" class=\"size-full wp-image-2668\" src=\"https:\/\/www.cooperategreen.com\/wp-content\/uploads\/2023\/11\/Website-foto-Bob-Nieuw.png\" alt=\"Website photo bob new\" width=\"170\" height=\"172\"><figcaption id=\"caption-attachment-2668\" class=\"wp-caption-text\"><strong>Bob van Dal<\/strong><br \/>bob@cooperategreen.com<\/figcaption><\/figure>\n<p><!-- notionvc: d248c623-d386-4dd8-913c-81eeecc00b42 --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The ISSB (International Sustainability Standards Board) was created by the IFRS Foundation with the goal of creating a globally uniform framework for sustainability reporting, similar to the way IFRS harmonizes financial reporting. The driving forces behind its creation: Fragmentation of ESG standards worldwide Increasing investor demand for consistent, comparable data Need for integration between financial [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":2809,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"slim_seo":{"title":"The rise of the ISSB and its relationship to the CSRD - Cooperate Green","description":"The ISSB (International Sustainability Standards Board) was created by the IFRS Foundation with the goal of creating a globally uniform framework for sustainabi"},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-geen-onderdeel-van-een-categorie"],"acf":[],"_links":{"self":[{"href":"https:\/\/cooperategreen.com\/en\/wp-json\/wp\/v2\/posts\/2814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cooperategreen.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cooperategreen.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cooperategreen.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/cooperategreen.com\/en\/wp-json\/wp\/v2\/comments?post=2814"}],"version-history":[{"count":5,"href":"https:\/\/cooperategreen.com\/en\/wp-json\/wp\/v2\/posts\/2814\/revisions"}],"predecessor-version":[{"id":2825,"href":"https:\/\/cooperategreen.com\/en\/wp-json\/wp\/v2\/posts\/2814\/revisions\/2825"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cooperategreen.com\/en\/wp-json\/wp\/v2\/media\/2809"}],"wp:attachment":[{"href":"https:\/\/cooperategreen.com\/en\/wp-json\/wp\/v2\/media?parent=2814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cooperategreen.com\/en\/wp-json\/wp\/v2\/categories?post=2814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cooperategreen.com\/en\/wp-json\/wp\/v2\/tags?post=2814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}