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Definition

IFRS S2 Climate-related Disclosures

IFRS S2 requires companies applying ISSB Standards to disclose climate-related risks and opportunities that could affect cash flows, access to finance, or cost of capital through governance, strategy, risk management, metrics, and targets, including GHG emissions.

What is IFRS S2 Climate-related Disclosures?

IFRS S2 is the International Sustainability Standards Board's climate disclosure standard. Paragraphs 1-3 focus on physical risks, transition risks, and climate-related opportunities that could affect cash flows, financing, or cost of capital. Keslio's practical ISSB guide explains the reporting process.

Why does IFRS S2 matter to you?

IFRS S2 is effective for annual reporting periods beginning on or after 1 January 2024, but it is not mandatory worldwide. A jurisdiction, stock exchange, parent, lender, investor, or voluntary reporting decision determines whether you apply it.

How does IFRS S2 work?

Governance, strategy, risk management, and metrics and targets organise the disclosures. Paragraphs 12, 23, and 32 require you to check the IFRS S2 Industry-based Guidance for topics and metrics that fit your activities. You must consider this SASB-derived guidance, but not copy every item.

What mistakes should you avoid?

  • Treating 1 January 2024 as a mandatory start date in every country.
  • Copying every industry metric without assessing applicability and materiality.
  • Using the original GHG provisions for periods beginning in 2027 without checking the December 2025 amendments.

Is IFRS S2 the same as IFRS S1?

No. IFRS S1 provides the general requirements for sustainability-related financial disclosures. IFRS S2 adds climate-specific requirements and is applied with IFRS S1.

What should you provide for an IFRS S2 request?

Provide why you are reporting, the entity and period, climate risk and governance records, your industry-guidance decision, the GHG calculation, targets, scenario-analysis assumptions, and the related financial statements.

Where it comes up

IFRS S2 identification of climate-related risks and opportunities using industry-based disclosure topicsIFRS S2 paragraph 12 (checked 2026-08-20)IFRS S2 strategy disclosures informed by industry-based metricsIFRS S2 paragraph 23 (checked 2026-08-20)IFRS S2 industry-based metrics associated with the entity's business model and activitiesIFRS S2 paragraph 32 (checked 2026-08-20)

Related terms

IFRS S1 General Requirements

IFRS S1 sets investor-focused disclosure requirements for sustainability risks and opportunities that could affect a company's cash flows, access to finance, or cost of capital, and connects those disclosures to its financial statements.

Scope 1 Emissions

Scope 1 emissions are greenhouse gases released directly from sources your company owns or controls, including fuel-burning equipment and vehicles, industrial processes, and refrigerant or other gas leaks.

Scope 2 Emissions

Scope 2 emissions are the indirect greenhouse gas emissions from generating the electricity, steam, heat, and cooling your company buys and uses.

Scope 3 Emissions

Scope 3 emissions are the indirect greenhouse gas emissions from goods, services, transport, product use, investments, and other upstream and downstream activities outside your company's Scope 1 and Scope 2 boundary.

Sources

Last verified 2026-08-20

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IFRS S2 Climate-related Disclosures Definition | Keslio