International Sustainability Standards Board IFRS S2 - Climate-related Disclosures

IFRS S2 requires entities to disclose information about their exposure to climate-related risks and opportunities.

It mandates reporting on physical risks (e.g., extreme weather) and transition risks (e.g., regulatory changes) that could affect the entity's cash flows, access to finance, or cost of capital.

Key requirements include disclosing:

Governance: How the organization monitors climate risks.
Strategy: How climate impacts the business model.
Risk Management: Processes for identifying and managing these risks.
Metrics and Targets: Including Scope 1, 2, and 3 greenhouse gas emissions and climate-related targets.
It aims to provide investors with consistent, comparable data for decision-making.