The International Sustainability Standards Board (ISSB), under the IFRS Foundation, has unveiled a series of initiatives aimed at making its sustainability disclosure standards a universal “global passport” for corporate reporting. The move comes amid rising momentum among regulators and countries adopting the ISSB framework, now spanning nearly 40 jurisdictions. As global adoption accelerates, the organization is taking steps to prevent fragmented reporting systems that could undermine comparability and investor confidence.

Building a Common Language for Global Sustainability Disclosures

The ISSB, established at the COP26 climate summit in 2021, was designed to bring clarity and consistency to sustainability reporting through its IFRS Sustainability Disclosure Standards. These include IFRS S1, which sets general requirements for sustainability-related disclosures, and IFRS S2, which focuses on climate-related reporting. Both were launched in June 2023 as the first global baseline for comparable ESG information. However, as more governments signal plans to integrate ISSB Standards into their national frameworks, the challenge has shifted from creation to coordination. Addressing this at the IFRS Foundation’s Sustainability Symposium, ISSB Chair Emmanuel Faber announced a new phase: turning alignment into interoperability. To that end, the board is introducing structures and tools that will allow sustainability reports compliant with ISSB Standards to be recognized across jurisdictions without the need for repetitive compliance or conflicting frameworks.

From Compatibility to “Passporting”: A Step Toward Cross-Border Recognition

Central to the ISSB’s latest announcement is the expansion and renaming of its Jurisdictional Working Group, first created in 2022 to align national reporting rules with the ISSB framework. The group will now operate as the Jurisdictional Adopters Working Group, reflecting a more proactive mandate helping regulators design systems that treat ISSB-aligned reports as valid across multiple regions, a process the board calls “passporting.” In practical terms, passporting means that if a company prepares its sustainability report in line with the ISSB’s official standards, that same report could be accepted by other regulators without major adjustments, while still allowing countries to account for local legal or policy nuances. According to the ISSB, this harmonization would reduce compliance costs, cut administrative friction, and allow investors to compare sustainability data across borders with greater confidence. Faber explained that this approach aims to address an emerging challenge: as adoption widens, differing national implementations risk fragmenting what was intended to be a unified global framework. The new working group provides a forum for regulators to coordinate solutions to these cross-border issues before they harden into barriers.

READ MORE: UK Moves to Regulate ESG Ratings Providers Under New Financial Conduct Authority Oversight

Guides and Tools for Jurisdictions Developing New Frameworks

Alongside the institutional changes, the ISSB released two major resources to support governments and standard setters. The first, the Jurisdictional Rationale Guide, offers a blueprint for countries crafting sustainability disclosure regimes that balance national priorities with global comparability. The second, a Jurisdictional Rationale Tool, helps regulators articulate their reasoning for adopting ISSB Standards and map out a step-by-step implementation roadmap. Together, these resources are designed to make the adoption process transparent, structured, and efficient. They also aim to ensure that as jurisdictions move toward convergence, they do so on a consistent basis that maintains the integrity of the ISSB framework.

“The expansion of the Jurisdictional Adopters Working Group and our new guide respond to jurisdictions’ needs for forums, tools, and resources supporting the effective use of ISSB Standards as the global passport,” said Faber. His remarks underscored the organization’s intent to position the ISSB as both a technical authority and a facilitator of dialogue between regulators.

Explore OneStop ESG Marketplace: ESG reporting

Why the Global Passport Concept Matters?

The idea of a “sustainability passport” has gained traction as companies increasingly operate in multiple jurisdictions with overlapping ESG reporting mandates from the EU’s Corporate Sustainability Reporting Directive (CSRD) to the U.S. SEC’s climate disclosure proposals and regional frameworks in Asia and Latin America. Without coordination, multinational firms face the prospect of producing several near-identical sustainability reports each year to satisfy different regulatory bodies. By promoting passporting provisions, the ISSB aims to create an ecosystem where a single set of high-quality disclosures meets most regulatory requirements. This would enhance efficiency, comparability, and investor trust while accelerating global progress toward standardized climate and sustainability data. The concept also aligns with the IFRS Foundation’s broader mission to make corporate disclosures as seamless and interoperable as financial reporting under IFRS Accounting Standards.

A Turning Point for Global ESG Governance

The ISSB’s push for cross-border interoperability signals a maturing phase for sustainability reporting. With nearly 40 jurisdictions already planning adoption and more expected in 2025, the next challenge lies in ensuring that these frameworks connect rather than collide. As global regulators debate the technical and political dimensions of harmonization, the ISSB’s new initiatives could mark a decisive step toward establishing a single reporting ecosystem, one where companies disclose once and are recognized everywhere. If successful, the “passporting” concept could not only streamline compliance but also reinforce the credibility and comparability of sustainability data across global markets.

Explore ESG Solutions on our marketplace - OneStop ESG Marketplace.

Keep abreast of the top ESG Events on OneStop ESG Events.

OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.

Stay informed with the latest insights on OneStop ESG News.

Discover meaningful career opportunities on OneStop ESG Jobs.