What are IFRS S1 & S2?
IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures) are global sustainability disclosure standards issued by the International Sustainability Standards Board (ISSB) under the IFRS Foundation.
IFRS S1 provides a comprehensive framework for organizations to disclose material sustainability-related risks and opportunities that could affect enterprise value, ensuring consistent, comparable, and reliable sustainability-related financial reporting across industries and markets.
IFRS S2 builds specifically on the TCFD (Task Force on Climate-related Financial Disclosures) framework, setting out detailed disclosure requirements for climate-related risks and opportunities, including:
- Governance
- Strategy
- Risk management
- Metrics and targets
- Scenario analysis
- Scope 1, 2, and 3 GHG emissions
Together, IFRS S1 and S2 provide investors and stakeholders with high-quality, decision-useful sustainability and climate-related information that is integrated with financial reporting, advancing global alignment and improving market transparency.
