International sustainability standards transform inclusive culture data into strategic decisions and connect governance, social impact and DEI to companies' financial reports
Although climate agenda has existed for some decades now, issues related to the sustainability and climate have been gaining more prominence in recent years. As of this year, for example, publicly traded companies in Brazil will have to report their sustainability information according to the international standards IFRS S1 and S2, established by the International Sustainability Standards Board (ISSB).
The ISSB's objective is to establish guidelines that help organizations report accurate and internationally compliant data on their social and environmental risks and opportunities. This covers key issues such as climate change, biodiversity and human rights.
To this end, the board launched IFRS S1 (on general sustainability requirements) and IFRS S2 (focused specifically on climate). These documents provide investors with a solid basis for analyzing how the sustainability and climate effects influence a company's operations, assets and financial performance.
“The adoption of IFRS standards goes beyond a historical record; it acts as a compass for strategic decisions in the present, underpinning more conscious choices that tend to sustain the organization's resilience and longevity.”
The change, a regulatory requirement of the Brazilian Securities and Exchange Commission (CVM), is not just a technical adjustment. It represents a global movement towards standardization and transparency that puts environmental, social and governance (ESG) issues at the heart of organizations' financial strategy. However, recent data show that 65% of Brazilian companies are not yet ready to implement these standards, according to a 2024 RSM survey. As of April 2025, only two companies (Vale and Lojas Renner) have opted for voluntary disclosure, highlighting the challenge ahead.
IFRS S1 and S2: why should you start preparing now?
One of the major challenges of the IFRS S1 and S2 standards is the time needed to collect, validate and analyze data. Unlike traditional financial reports, which already have consolidated systems, the information from sustainability require the integration of multiple areas and data sources. Companies need to map climate risks, measure greenhouse gas emissions, evaluate social impacts and demonstrate how the corporate governance oversees these issues.
That's why it's very important for organizations to start preparing now. After all, it's a job that involves the mapping of ESG indicators, integration into the database and ensuring the traceability of information, a process that requires a thorough review of the internal governance.
“The implementation of IFRS S1 and S2 cannot be treated as a one-off compliance demand, as its biggest challenge lies in the identification and management of socio-environmental risks and opportunities that impact the company's value. Companies need to structure robust and continuous data processes that connect these factors to the business strategy. At PlurieBR, for example, we support this journey with the ESG Insights, This is a technology that transforms risk analysis into strategic decisions, guaranteeing the technical precision required for the new regulatory scenario.”, Laura Salles, CEO of PlurieBR, Brazil's first SaaS platform for managing inclusive culture.
How social impact, governance and DEI are integrated into the report
Although IFRS S2 focuses on climate, IFRS S1 makes room for companies to report other climate-related data. sustainability that can have a financial impact on the business. And this is where social issues such as diversity, equity and inclusion (DEI).
Second recent Deloi researchtte with Investor Relations professionals, 78% of Brazilian companies claim to have minority group leaders and 59% promote ESG actions. However, only 31% link indicators to the ESG area, limiting the strategic engagement with the issue. The trend is for investors to demand more and more concrete data on how inclusion policies affect the talent retention, innovation and corporate reputation.
The integration of DEI into IFRS reports goes beyond diversity figures in the workplace. It requires companies to demonstrate how social issues connect to business strategy and financial performance. This includes, for example, how inclusion programs impact the attraction and retention of talent, how the diversity in leadership influences decision making, and how initiatives of pay equity affect the cost structure.
In the process, the corporate governance plays a fundamental role: it is necessary to demonstrate that there is active supervision by the Board of Directors of social issues, with specific committees, defined targets and monitoring mechanisms. DEI metrics must be auditable and traceable, following the same rigorous standards as financial data.
“Diversity and inclusion are no longer peripheral issues. With IFRS S1 and S2, these issues are at the heart of corporate strategy and dialog with investors. PlurieBR was created precisely to help companies transform their diversity and inclusion initiatives. inclusive culture in reliable and strategic data. Our platform allows organizations to not only measure, but connect their DEI efforts to business results, creating consistent, evidence-based narratives for stakeholders.”, adds Laura Salles.
Journey to implementation in companies
The road to compliance with IFRS S1 and S2 requires agility and strategic vision. The journey begins with a diagnosis of ESG maturity, This is essential for identifying what data is already available and what gaps need to be filled. Next, organizations must define the topics that can financially impact the business, covering not only the climate agenda, but also crucial social pillars such as DEI (diversity, equity and inclusion), health, occupational safety and labor practices.
In this scenario, technology becomes the foundation for structuring, collecting and managing data, guaranteeing the traceability and auditability required by the market. O ESG Insights, from PlurieBR, has consolidated itself as a strategic facilitator in this process, It supports companies in their quest for socio-economic and environmental balance. The platform automates the sustainability journey, from initial diagnosis to risk and opportunity management, integrating global frameworks such as GRI, SASB, CSRD and the IFRS standards themselves.
The big difference lies in the use of end-to-end AI agents, which bring technical precision to complex analyses and ensure that sustainability is managed as a central pillar of corporate strategy.
To complete this cycle of preparation, it is essential to train the teams, strengthen governance and structure the processes for the external audit, which will be mandatory as of this year.
More than a regulatory obligation, IFRS S1 and S2 are an opportunity to demonstrate, through concrete data, how ESG generates real value. Companies that invest in robust systems and integrate these practices into their core business gain clear competitive advantages: greater market confidence, easier access to capital, risk mitigation and a strengthened reputation. The trend is for the market to increasingly value companies that prove their practices with transparency and rigor. For managers of inclusive culture, HR and sustainability, this is the time to take the lead and ensure an active and direct voice in the future of organizations and in the dialogue with investors.