Dong-A Socio Holdings Adopts ISSB Standards in Sustainability Report

South Korean pharmaceutical group sets new disclosure standard

Dong-A Socio Holdings has published its 2025 integrated report using International Sustainability Standards Board frameworks. The report, titled GAMASOT, represents the first systematic application of ISSB standards by the Korean pharmaceutical group. This marks a shift from voluntary ESG narrative towards standardised financial disclosure.

The move comes as global capital markets demand greater consistency in sustainability reporting. For UK businesses, particularly those with international supply chains or investors, the adoption patterns emerging in major economies like South Korea signal where regulatory expectations are heading. Understanding these standards now will matter for future compliance and competitiveness.

How the ISSB framework operates

The International Sustainability Standards Board was created in 2021 by the IFRS Foundation. Its purpose is to establish a global baseline for sustainability disclosures that meet investor needs. The ISSB sits alongside the International Accounting Standards Board, reflecting how sustainability data is increasingly treated as financial information rather than separate reporting.

Two core standards form the framework. IFRS S1 sets out general requirements for sustainability-related financial disclosures. Meanwhile, IFRS S2 addresses climate-specific metrics including Scope 1, 2, and 3 emissions, transition plans, and scenario analysis. Both standards became effective for reporting periods starting January 2024.

Currently, 36 jurisdictions are either using these standards or preparing to adopt them. Some have made them mandatory. Others are aligning existing regulations with ISSB requirements. This creates a converging global approach to sustainability disclosure, which affects how businesses demonstrate ESG performance to investors and procurement teams.

What Dong-A Socio Holdings has implemented

The pharmaceutical group’s 2025 integrated report covers the period from January to December 2025. It represents the first time Dong-A Socio has aligned its sustainability reporting with ISSB frameworks. The company has implemented what it calls the GAMASOT System to manage ESG data across its operations.

Dong-A Socio Holdings currently holds an AA rating from MSCI ESG ratings. This places the company in the upper tier of ESG performance assessment. The group also established a Digital Healthcare Business Task Force in April 2024, indicating strategic development in adjacent sectors.

The decision to adopt ISSB standards reflects broader shifts in South Korean corporate practice. As international investors, including the Norwegian National Pension Fund, increasingly favour jurisdictions with standardised sustainability reporting, Korean companies are responding. Consequently, this creates competitive pressure on peers to follow similar disclosure approaches.

Implications for UK businesses and supply chains

The adoption of ISSB standards by major international corporations has direct consequences for UK SMEs. Firstly, companies operating in global supply chains may face requests for ISSB-aligned data from multinational customers. Secondly, businesses seeking investment from international funds will encounter these disclosure expectations. Thirdly, UK regulatory developments are moving in parallel directions.

The Financial Conduct Authority has already introduced sustainability disclosure requirements for listed companies. Although these rules currently apply to larger firms, the direction of travel is clear. Furthermore, public procurement criteria increasingly reference internationally recognised standards. Understanding ISSB frameworks now provides preparation for future mandatory requirements.

For manufacturers, the emphasis on Scope 3 emissions in IFRS S2 has particular relevance. This standard requires disclosure of emissions throughout the value chain, not just direct operations. Therefore, suppliers will need systems to measure and report emissions data to customers. Additionally, businesses without robust ESG data management may find themselves excluded from certain tenders or supply relationships.

Service companies face similar pressures. Professional services firms, IT providers, and consultancies working with international clients are seeing procurement questionnaires that reference ISSB-style metrics. Specifically, questions about climate transition plans, scenario analysis, and sustainability governance are becoming standard. Businesses that can provide clear, standardised responses have a competitive advantage.

Core elements of ISSB-aligned reporting

• IFRS S1 requires disclosure of sustainability-related risks and opportunities that could affect cash flows, access to finance, or cost of capital over the short, medium, or long term.
• IFRS S2 mandates reporting of Scope 1, 2, and 3 greenhouse gas emissions using the Greenhouse Gas Protocol methodology, which UK businesses may already use for carbon reporting.
• Companies must explain their governance processes for sustainability matters, including board oversight and management responsibility for climate-related risks.
• Reporting entities need to describe their strategy for managing sustainability risks, including how these risks affect their business model and value chain.
• The standards require disclosure of metrics and targets used to measure and manage sustainability performance, ensuring consistency and comparability across reporting periods.
• Climate scenario analysis becomes necessary to demonstrate how business strategy might perform under different climate futures, typically including a 1.5-degree warming scenario.
• Transition plans must explain how the organisation intends to respond to climate-related risks and opportunities, including timelines and resource allocation.

Practical steps for UK SMEs

Businesses do not need to implement full ISSB reporting immediately. However, taking incremental steps now will reduce future compliance burden and maintain commercial competitiveness. The first priority is establishing reliable carbon measurement. Many UK companies already report Scope 1 and 2 emissions for SECR compliance or PPN 06/21 requirements. Extending this to cover Scope 3 emissions provides the foundation for ISSB-style disclosure.

Secondly, documenting governance structures for ESG matters helps demonstrate systematic management rather than ad hoc responses. This means identifying who has board-level responsibility for climate risks and how these risks are integrated into business planning. Such documentation increasingly appears in tender responses and investor due diligence.

Establishing a data management system for ESG metrics is equally important. Spreadsheet-based tracking may suffice initially, but as reporting requirements expand, businesses need systems that ensure data accuracy and auditability. Consequently, investing in appropriate tools now prevents scrambling when disclosure becomes mandatory. Our compliance support services help businesses establish these systems without excessive resource commitment.

Scenario planning represents another key element. Businesses should consider how their operations and markets might change under different climate scenarios. For example, manufacturers might assess how carbon border adjustment mechanisms or increased energy costs would affect margins. This analysis informs strategic planning beyond compliance reporting.

Training staff on ESG data requirements ensures consistent practice across the organisation. Finance teams need to understand sustainability metrics as financial information. Operations teams must recognise their role in data collection. Procurement teams should know what information to request from suppliers. The SBS Academy provides targeted training on these topics for UK businesses.

Connection between ISSB standards and UK requirements

UK businesses already navigate several sustainability reporting frameworks. SECR requires quoted companies and large unquoted companies to report energy use and carbon emissions. PPN 06/21 sets carbon reduction plan requirements for central government suppliers. The Task Force on Climate-related Financial Disclosures provides another framework, now mandatory for premium listed companies.

ISSB standards are designed to incorporate and build on these existing frameworks. Specifically, IFRS S2 aligns with TCFD recommendations, meaning businesses already complying with TCFD have covered significant ground. Similarly, the emissions reporting requirements in IFRS S2 use the same Greenhouse Gas Protocol methodology as SECR and PPN 06/21.

This convergence reduces duplication. Rather than maintaining separate reporting systems for different requirements, businesses can develop integrated approaches that serve multiple purposes. A well-structured carbon reduction plan prepared for PPN 06/21 compliance provides much of the content needed for ISSB-aligned climate disclosure. Therefore, treating these requirements as interconnected rather than separate obligations improves efficiency.

The UK government has indicated support for international sustainability standards. In its Green Finance Strategy, the government committed to ensuring UK standards remain internationally compatible. Consequently, UK businesses preparing for ISSB-style reporting are also preparing for likely domestic regulatory developments. Early preparation reduces disruption when requirements become mandatory.

Where this leaves UK businesses

The adoption of ISSB standards by major international corporations like Dong-A Socio Holdings demonstrates how sustainability disclosure is becoming standardised financial reporting. This shift affects UK SMEs through supply chain requirements, investor expectations, and evolving regulatory frameworks. Businesses that establish carbon measurement systems, governance structures, and data management processes now will face less disruption as requirements expand.

For companies in manufacturing, professional services, or technology sectors with international exposure, understanding ISSB frameworks has become commercially relevant. Tender responses increasingly require evidence of systematic ESG management. Investment decisions factor in sustainability performance measured against recognised standards. Supply chain audits examine carbon reporting capabilities.

The practical approach involves building on existing compliance activities. UK businesses already reporting under SECR or preparing carbon reduction plans for PPN 06/21 have established foundations. Extending measurement to Scope 3 emissions, documenting governance processes, and implementing scenario analysis represent logical next steps. These activities strengthen tender responses, support net zero programme development, and prepare businesses for future regulatory requirements.

Waiting for mandatory adoption in the UK means catching up later. Businesses that develop capabilities now will have smoother transitions and stronger competitive positions. Moreover, they will be better placed to respond to procurement questionnaires, investor enquiries, and supply chain audits that increasingly reference international standards.

Official guidance and additional information

The IFRS Foundation publishes the official ISSB standards and supporting materials. Their website provides free access to IFRS S1 and IFRS S2, including implementation guidance and illustrative examples. UK businesses seeking to understand technical requirements should consult these primary sources at the International Sustainability Standards Board section of the IFRS Foundation website.

The UK government’s Green Finance Strategy outlines how sustainability reporting fits within broader policy objectives. This document, available through the government’s website, explains the regulatory direction for corporate sustainability disclosure. Additionally, the Financial Conduct Authority provides guidance on sustainability disclosure requirements for listed companies, which signals expectations for wider business populations.

The Greenhouse Gas Protocol, which forms the measurement basis for IFRS S2, offers detailed technical guidance on emissions calculation. UK businesses measuring carbon footprints should refer to the GHG Protocol standards and calculation tools to ensure consistency with international approaches. For businesses working on carbon reduction plans for public sector contracts, the government’s PPN 06/21 guidance remains the authoritative source and is available on the gov.uk procurement policy notes page.