IFRS S2 is the climate-related disclosure standard issued by the International Sustainability Standards Board, specifying how entities report climate-related risks and opportunities. Building on the TCFD recommendations, it requires disclosure of physical and transition risks, greenhouse-gas emissions across Scopes 1 to 3, and climate-resilience analysis. IFRS S2 operates alongside the general IFRS S1 baseline.
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- It mandates quantitative emissions disclosure including the often-challenging Scope 3 value-chain emissions, plus scenario-based resilience assessment and transition-plan reporting. By codifying the TCFD framework into an auditable standard, IFRS S2 raises the consistency and assurability of corporate climate disclosures.