Some investors have shown enthusiasm for the inclusion of non-GAAP measures, including reporting on sustainability issues and climate-related risks, in addition to traditional financial reports. The SEC has expressed concerns that non-GAAP reporting in general—and sustainability and climate-related information in particular—provided by different companies is often inconsistent and not comparable by investors. While the SEC has provided some guidance concerning US reporting, this month’s column presents some resources from the international front.
IFRS Sustainability
The IFRS Foundation (https://www.ifrs.org) is an independent, not-for-profit organization that sets the International Financial Reporting Standards for financial reporting used in more than 140 jurisdictions (“Who Uses IFRS Accounting Standards?” IFRS, https://tinyurl.com/37n49ehn). In 2021, the IFRS Foundation consolidated the Sustainability Accounting Standards Board (SASB), the Task Force on Climate-Related Financial Disclosures (TCFD), and the International Integrated Reporting Council (IIRC) under the Value Reporting Foundation (VRF). Additionally, the VRF and the Climate Disclosure Standards Board (CDSB) were then combined under the International Financial Reporting Standards Foundation (IFRSF). Later in 2021, the IFRSF formed the International Sustainability Standards Board (ISSB) (“About the International Sustainability Standards Board,” IFRS, https://tinyurl.com/47k9hh3y). The ISSB is an independent standard-setting body within the IFRS Foundation and develops the IFRS Sustainability Disclosure Standards.
The IFRS Sustainability Standards Navigator provides access to the IFRS standards, accompanying guidance, industry-based guidance, and basis for conclusions (https://tinyurl.com/yzp3ppwd). The standards are viewable with a free “basic” registration. The “inaugural” standards are IFRS S1 and IFRS S2, and information is available on the IFRS Sustainability website, as well as the IFRS Knowledge Hub.
IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, is effective for reporting periods beginning on or after Jan. 1, 2024, and requires disclosures of sustainability-related risks and opportunities pertaining to cash flows and access to financing. IFRS S1 includes the concepts surrounding sustainability-related financial information, which includes the requirements on materiality and connected information. Additionally, IFRS S1 provides the disclosure requirements relating to governance, strategy, risk management, and metrics and targets.
IFRS S2, Climate-related Disclosures, cover climate-related risks and opportunities expected to affect cash flows and access to financing, and specify disclosure requirements for general purpose financial reports, building on the requirements of IFRS S1. IFRS S2 includes the original TCFD standards, and users do not need to try to incorporate two sets of requirements. IFRS S2 requests climate-related risks and opportunities at an industry-specific level, as well as more broadly cross-industry. IFRS S2 does not specify which scenarios a company should use in its analysis. Rather, a company may construct its own relevant scenarios and correspondingly provide information about the chosen scenarios. It should be noted that US SEC regulations are influenced by TCFD; however, for US issuers, the SEC regulations are required, whereas TCFD, and therefore IFRS S2, are voluntary.
The IFRS Sustainability website provides access to the use of IFRS Sustainability Disclosure Standards around the world (https://tinyurl.com/3puphu3j). This page includes links to multi-page profiles of 19 countries, and shorter 2-page snapshots of 17 countries that subscribe to the IFRS sustainability standards. The IFRS Foundation also hosts the IASB and ISSB monthly podcasts at https://tinyurl.com/4b5xreum. Users can sign up for advance notification.
IFRS Knowledge Hub
The IFRS Knowledge Hub (https://www.ifrs.org/sustainability/knowledge-hub) contains resources to aid in the application of IFRS Sustainability Disclosure Standards. Content on the Hub is created by about 50 partner organizations, including the AICPA, the Big Four, and international professional and non-governmental bodies. The Resources tab on the main menu provides access to search the partnership resource database of articles, podcasts, training, practical tools, and many other materials. There is also a separate page of IFRS Foundation Resources, which covers key concepts, climate-related disclosures, industry-specific disclosures, and other reporting frameworks. The Knowledge Hub currently contains two IFRS videos on IFRS S1 and IFRS S2 that run approximately one hour each. They both provide downloadable transcripts.
IFRS Knowledge Hub: https://www.ifrs.org/sustainability/knowledge-hub
Sustainability-reports.com
The International Portal for Sustainability reporting offers regular news articles and a library of annual reports of international companies publishing sustainability information (https://www.sustainability-reports.com). One of the recent news items includes “GRI Is Top Choice for Sustainability Reporting Worldwide,” which provides an overview of a June 2026 report published by the Global Reporting Initiative (GRI) (June 25, 2026, https://tinyurl.com/87e26jb6). The 25-page report, “The State of Sustainability Reporting: Global Trends in the GRI Standards 2025,” surveyed 15,000 listed companies in 132 jurisdictions (https://tinyurl.com/m3e9y5kp). The GRI sustainability reporting framework was used by 40% of surveyed companies, generally in combination with other frameworks, such as those maintained by the IFRS Foundation.
Following the GRI report, it is no surprise that “GRI and IFRS Foundation Reaffirm Commitment to Complementary Disclosures” addresses a joint statement issued by the two organizations regarding how the GRI and ISSB standards can be used together in sustainability reporting (May 27, 2026, https://tinyurl.com/43yy7cdk). The joint statement addresses common disclosures and complementary disclosures between the two standards.
“There Is a Strong Positive Correlation Between Companies that Disclose Their Impacts and Improved Financial Performance” summarizes a literature review of 30 research studies published between 2010 and 2025 (Dec.16, 2025, https://tinyurl.com/2s4zmw2v). More than 70% of the studies (e.g., the published articles) indicated that improved financial performance was linked to sustainability reporting. Two specific benefits include reputational rewards and perceptible financial gains. As expected, high risk industries received the most benefit from sustainability disclosures.
Companies do pay to have their reports presented on Sustainability-reports.com, which currently costs around $300. Some companies publish every year, others occasionally, and some have only published reports once. It should be noted that companies may be publishing sustainability disclosures more frequently via other outlets, such as their own websites. The reports are freely viewable and downloadable by website users at https://tinyurl.com/3wf92vne. The following are a few examples that will be well known to US investors and will provide an educational introduction to the level of detail, as well as the unique approaches provided in current sustainability reports.
Apple’s 2025 “Environmental Progress Report” summarizes its initiatives, engagement, and advocacy, and presents data on greenhouse gas, carbon credit, carbon footprint, and other factors, as well as its environmental plans for the future. There is an interesting visual presentation of priority materials, such as rare earth minerals. Its extensive 126-page report includes letters of assurance from independent reviewers.
Microsoft has four years of “Environmental Sustainability Reports” available, with 2025 as the most recent. The 2025 report addresses carbon, water, waste, and ecosystems, along with customer and global sustainability. A wide variety of interesting topics, such as gaming, arts, and culture, are addressed in the 90-page document. Appendix A offers a link to a separate 25-page “data fact sheet,” hosted on Microsoft’s own website.
HP’s 2024 “Sustainable Impact Report” summarizes the company’s sustainability strategies, targets, and progress. HP has identified 27 sustainability impacts, risks, and opportunities, and 12 material topics, which are summarized in an interesting environmental, social, and governance table. In 178 pages, HP presents a tremendous amount of data, as well as discussions on ethics, and many other similar topics. Page 159 is an Independent Accountants’ Report from EY. CPAs can take note that this type of work is available to the profession, and the AICPA does provide guidance.
