The study aims to explore the perceptions of institutional investors of the quality of climate-related disclosures as proposed in ISSB Exposure draft 2 (ED2). ISSB ED2 was released in 2022 and went through a due process receiving comments and feedback in nearly 800 submissions from various stakeholders. Among them, 165 comment letters were submitted by institutional investors and their association. This provides a unique opportunity to examine the expectations and information demand of an important group of users and provide critical implications to policy makers, standard setters, professional bodies and preparers. The study examines the investors’ opinions grounding on the decision-usefulness theory framework and analysing four key areas – materiality, relevance, comparability and measurement. Findings suggest that there are numerous concerns about the materiality and materiality assessment proposed in ED2 which leads to issues in relevance, comparability and measurement. Reconsideration of materiality concept is key to enhance the decision-usefulness of climate-related disclosures. Several other important issues include concerns about granularity, interoperability with other international and national guidelines, and lack of guidance on measurement of GHG emission across Scope 1, 2 and 3. The findings offer important implications for improving the decision usefulness of climate-related reporting practices.