Sustainability · Global Standards

What are IFRS S1/S2, and their link to Indonesian reporting?

Short answer

IFRS S1 and IFRS S2 are sustainability-disclosure standards from the ISSB (under the IFRS Foundation). S1 governs general sustainability-related financial disclosures; S2 governs climate-related disclosures (including Scope 1–3 emissions). Indonesia adopts them through PSPK 1 & 2, effective 1 January 2027, so issuers will disclose sustainability within a globally aligned framework.

Brief content

Standard	Coverage
IFRS S1	General sustainability-related financial disclosure: governance, strategy, risk management, metrics & targets.
IFRS S2	Climate-related disclosure: physical/transition risks, Scope 1/2/3 GHG emissions, targets.

Link to Indonesia

PSPK 1 adopts IFRS S1; PSPK 2 adopts IFRS S2.
Financial-materiality based, connected to the financial statements.
Effective 1 January 2027 (early adoption permitted).

Because PSPK aligns with IFRS, Indonesian issuers' sustainability reports become easier for global investors to compare and assess, provided the data is consistent and traceable.

Frequently asked questions

How do IFRS S1 and S2 differ?

S1 governs general sustainability-related financial disclosure; S2 is climate-specific, including Scope 1–3 greenhouse-gas emissions.

How does Indonesia adopt IFRS S1/S2?

Through PSPK 1 (adopting S1) and PSPK 2 (adopting S2) set by the IAI Sustainability Standards Board, effective 1 January 2027.

Who creates IFRS S1/S2?

The ISSB (International Sustainability Standards Board) under the IFRS Foundation.

Must issuers follow IFRS S1/S2 directly?

In Indonesia the obligation follows PSPK (the national adoption of IFRS S1/S2), not IFRS directly. PSPK is effective 2027.

Official sources

IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (ISSB).
IFRS S2 Climate-related Disclosures (ISSB).
PSPK 1 & 2, IAI Sustainability Standards Board (national adoption; effective 1 January 2027).
Official references: IFRS Foundation (ISSB) · IAI (DSK)

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Compiled June 2026 from official sources. Regulations and practices evolve; verify the latest OJK/IDX/IAI/KNKG provisions before making decisions. This page is informational, not legal or accounting advice.