IFRS S2 Climate-related Disclosures is the ISSB standard requiring entities to disclose material information about climate-related risks and opportunities. It is structured around the four TCFD pillars (Governance, Strategy, Risk Management, Metrics & Targets) and has been effective for annual periods beginning on or after 1 January 2024.
Which jurisdictions have adopted IFRS S2?
By 2026, around 20 jurisdictions have adopted or are in advanced stages of adopting ISSB standards, including the UK (UK SRS), Japan (SSBJ), Hong Kong (HKEX Part D of Appendix C2), Australia (AASB S2), Brazil, Canada, Singapore, and others. Adoption mechanics differ — some mandate via listing rules, others via financial reporting standards.
What's the difference between IFRS S1 and IFRS S2?
IFRS S1 sets the general requirements for sustainability-related financial disclosures (materiality, connectivity with financial statements, frequency, location). IFRS S2 is the first topical standard and covers climate specifically. Other topical standards (biodiversity, human capital) are in development at the ISSB.
How does IFRS S2 handle Scope 3 emissions?
IFRS S2 requires disclosure of absolute gross Scope 1, 2 and 3 GHG emissions measured per the GHG Protocol, with relief provisions. Scope 3 disclosure was subject to a one-year transition relief from the first application. Financed emissions must be disclosed by banks, insurers and asset managers in line with the GHG Protocol and PCAF.
Do I need to do scenario analysis?
Yes. IFRS S2 requires entities to use climate-related scenario analysis to assess their climate resilience, at a level of detail commensurate with their circumstances. The analysis should cover a range of scenarios including at least one consistent with limiting warming to 1.5 degrees C.
Can I reuse my CDP or CSRD reporting for IFRS S2?
Yes. The 2024+ CDP Corporate Questionnaire is explicitly aligned with IFRS S2, and CSRD ESRS E1 overlaps heavily. Formist cross-maps content across these frameworks so a single data collection exercise populates IFRS S2, ESRS E1, HKEX Part D and CDP Module 7 with jurisdiction-specific differences flagged.