ISSB moves off seed money with a five-year plan

The IFRS Foundation has approved a five-year operating and financing plan for the International Sustainability Standards Board, moving the ISSB from finite seed money to a financing model meant to last. The plan runs from 2027 through 2031 and was approved alongside a separate plan for the IASB, the foundation's accounting standards board. A Geneva office for the ISSB will open next year.

The ISSB, created in 2021 to write IFRS Sustainability Disclosure Standards, published its first two standards in June 2023: S1 on general sustainability and S2 on climate. More than 45 jurisdictions now use those standards. Companies in 18 jurisdictions are scheduled to begin issuing reports under them by 2027, according to the IFRS Foundation.

The financing plan draws on commitments from philanthropic, jurisdictional, and other contributors. The foundation says the plan is structured to carry the board through the adoption period and secure resources for its priorities through 2031.

The financing model drew scrutiny from the U.S. Securities and Exchange Commission in 2025. The SEC warned it may reconsider rules that allow foreign companies to file financial statements using IFRS accounting standards, arguing that the IFRS Foundation's backing of the ISSB stretched its remit beyond accounting. The foundation said the IASB and ISSB operate and are funded independently.

The five-year plan is the first concrete test of that independence. Seed money is finite by design; the ISSB now has to broaden its contributor base while the standards gain wider use. The Geneva office adds to the board's physical presence. The foundation's argument is that capital markets need a shared language for companies to tell investors how resilient they are. None of this settles the SEC's 2025 objection. Whether the concern fades depends on how cleanly the two boards stay separated as the ISSB's funding matures.