IFRS S2
IFRS S2 is an International Sustainability Standards Board disclosure standard for climate-related risks and opportunities that could reasonably be expected to affect an entity's cash flows, access to finance, or cost of capital. It is applied with IFRS S1 and includes climate-specific governance, strategy, risk, metrics, and target requirements.
In simple terms
Together with IFRS S1, the standard covers physical and transition risks as well as climate-related opportunities. It asks entities to explain governance, business-model and strategy effects, resilience, risk processes, and performance through specified metrics and targets, including greenhouse-gas information. Industry-based guidance supports sector-relevant application. IFRS S2 is effective from 2024, but adoption and transition arrangements differ by jurisdiction. Targeted greenhouse-gas disclosure amendments issued in December 2025 are effective for periods beginning in 2027, with early application permitted, so readers should identify which version a report uses.
Why it matters
Climate change can affect demand, assets, supply chains, costs, financing, and business viability. IFRS S2 creates a common investor-focused structure for explaining those effects and the entity's response. Comparable disclosure can support capital decisions, but usefulness depends on entity-specific analysis, connected financial information, credible scenarios and assumptions, and the version legally or voluntarily applied.
Example
For example, a property company reports flood and heat exposure, policy-driven retrofit risks, governance, resilience analysis, emissions, climate targets, and anticipated financial effects. It states the jurisdictional requirements, transition reliefs, and IFRS S2 amendments used for that reporting period.
How it differs
IFRS S1
IFRS S2 contains climate-specific disclosure requirements. IFRS S1 provides the general requirements that govern sustainability-related financial disclosures across topics and is used together with IFRS S2.
References
Current status
- As of
- Issuer
- International Sustainability Standards Board
- Instrument or version
- IFRS S2 Climate-related Disclosures, including December 2025 amendments
- Status
- IFRS S2 is effective for annual periods beginning on or after 1 January 2024; targeted greenhouse-gas disclosure amendments issued in December 2025 become effective on 1 January 2027, with early application permitted.
Applicability: Use depends on jurisdictional adoption or other requirement; entities applying the 2025 amendments before 2027 must disclose early application as required.