Some examples of ISSB adoption

This week, we’re highlighting five annual reports that have begun adopting the ISSB’s S1 and S2 standards this year. While examples remain limited worldwide, these early adopters offer valuable insights into how disclosure practices are evolving in response to the new frameworks.

• Fibra Uno’s most recent integrated report (available here) includes its first quantitative scenario analysis of potential physical climate risks (e.g., hurricanes, flooding) on property valuations across core regions. Additionally, the report provides building-by-building energy intensity baselines and five-year forecasts to inform capital allocation and decarbonization targets. 

• HSBC in its last Annual Report provides detailed scenario analysis quantifying expected credit losses (ECLs) in high-carbon sectors under 1.5°C, 2°C, and 3°C pathways, alongside financed emissions exposure and decarbonization trajectories by sector, showing percentage impacts on risk-weighted assets. The bank also discloses specific estimates of impairment allowances and provisions linked to transition risk, illustrating how climate scenarios could affect loan portfolios and capital requirements.

• Johnson Control’s latest Sustainability Report goes further than its 2023 version by formally aligning climate disclosures with the ISSB/IFRS S1 and S2 standards, especially around governance, strategy, risk management, metrics, and performance (following ISSB’s disclosure framework). This report also quantifies revenue attributable to “sustainable and low-carbon solutions,” stating how much these represent of revenues and how they expect continued growth. 

• Munich Re has adopted ISSB-aligned reporting (building on TCFD), explicitly linking climate risk scenarios to solvency ratios, underwriting exposure, and asset-liability management. Its Climate Change Strategy 2023 details how 2°C and 4°C scenarios are modeled to assess impacts on risk capital requirements and investment portfolios. The disclosures also describe the governance process for climate risk integration into strategic planning and reinsurance pricing. Their latest Group Annual Report (Sustainability Report) is pretty dense but follows the ISSB information structure quite consistently (governance – strategy – risk management – metrics and targets). 

• Vale’s first Sustainability – Related Financial Information Report introduces systematic mapping of climate risks to estimated financial impacts under multiple scenarios, including carbon price stress tests. The report also details new remuneration links, with part of variable executive compensation tied to Scope 1 and Scope 2 emissions reduction targets.

As more companies take their first steps toward implementing S1 and S2, these examples set an important precedent for transparent, decision-useful sustainability disclosures. While adoption is still in its early stages, the progress we’re seeing underscores the growing recognition that investors and stakeholders expect credible, comparable information about climate and sustainability-related risks and opportunities. As we find more relevant examples, we will be happy to share them.

I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.

Best,

Marimar

CEO, Miranda ESG