IFRS S2 Climate-related Disclosures
It builds on IFRS S1 and includes requirements concerning governance, strategy, risk management, metrics and targets. Relevant risks include physical and transition risks, and greenhouse-gas disclosures include the specified scope categories subject to the standard’s requirements and applicable reliefs. Applicability depends on jurisdiction and reporting period.
Worked example
A company assesses a material risk that extreme heat could disrupt its facilities and explains its governance, strategy and relevant metrics in line with the applicable requirements.
Common mistake
Treating IFRS S2 as an accounting standard for recognising carbon assets, or assuming the same transition provisions apply to every reporting period.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBR | Direct | September 2026–June 2027 |