Disclosure focus
This disclosure asks an organisation to describe the climate-related risks and opportunities it has identified and how they may affect the business. In practice, the report should explain what matters most, where those matters arise, and whether they could influence strategy, operations, finances, or resilience over time. The focus is on giving a clear picture of the organisation’s climate-related exposure, not just listing generic issues.
Practically, the emphasis is usually on coverage across the organisation as a whole, rather than only highlighting a few flagship sites or isolated examples. A useful explanation will show whether the assessment spans the full business, key geographies, major assets, and relevant parts of the value chain, and whether the organisation has considered both risks and opportunities in a consistent way.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS source.
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key information to prepare
＋ Show s2-10 sub-elements (LRA working checklist)
Set out how your organisation defines the short, medium and long timeframes it uses.
Show how those timeframes connect to your planning periods.
Describe each risk or opportunity in practical terms.
State whether each risk is physical or linked to the transition.
Assign a time period to each item.
How to prepare it
1Set the reporting boundaries first: decide which risks and opportunities you will include, and make sure each one is tied to a specific time band used by the business.
2Agree the time bands in plain business terms: define what your organisation means by short, medium and long term, and show how those bands connect to your planning horizons.
3For every item you include, write a clear description and state whether it is a physical risk or a transition risk; keep the wording consistent across the register and the disclosure draft.
4Gather the supporting records for each item: internal papers, risk logs, planning documents, or other source material that shows the classification, the description, and the time band used.
5Build the disclosure from the evidence: prepare the narrative or figures so each item is matched to its own time horizon and the organisation’s defined short, medium or long term view.
6Before finalising, check the draft against the official source, note any exclusions or changes in approach, and confirm the wording still matches the underlying evidence.
Request the data
Request the climate risk and opportunity register inputs
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
What climate-related risks and opportunities has the business identified, how are they grouped into time bands, and how do those time bands connect to the organisation’s own planning horizons?
Use the organisation’s own labels first, then map them to the reporting categories. For example, if your business talks about planning windows, forecast periods, or strategic cycles, use those terms in the request and only translate them afterwards for the disclosure pack.
Weak request
Please provide the climate-related risks and opportunities disclosure data in line with the standard, including the entity’s definition of short, medium and long term and the link to planning horizons.
Why it fails: This is too close to framework language and does not tell the owner what to pull from their own systems. It also leaves the request vague about the business records, the internal labels, and the exact fields needed to make the information usable.
Better request
Please send the current climate risk and opportunity register for [period], using your own planning-window labels. For each item, include the plain-language description, whether it is a downside or upside item, the time band you use internally, how that band connects to your budget, forecast, or strategy cycle, and the source file or system. If you already have a register export, that is ideal.
Industry examples
Draft your disclosure
Notes that turn data into a disclosure
LRA training templates — adapt them to your organisation, and check the official source before sign-off.
Method note
Explain how the organisation defines its short, medium and long planning windows, how those windows connect to its wider planning approach, and how each risk or opportunity was assigned to a time band.
Context note
Set out what the figures show about which issues are expected to matter sooner or later, and how the mix of physical and transition matters changes across the different planning windows.
Fluctuation statement
If the pattern shifts from one period to another, note whether that is because the organisation changed its planning assumptions, identified new issues, or reassessed when particular risks or opportunities are likely to arise.
Content index entry
s2-10 Climate-related risks and opportunities — [location / page] / [notes]
Download Centre
Preparation tools & forms
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
The information is presented without a date or as-at point.The scope or boundary of the statement is left undefined.Key terms are used inconsistently across the report.Material changes since the previous period are not disclosed.Assertions are made without supporting detail or a source record.Boilerplate is used that does not actually answer what is asked.
Common gaps
Mistakes to avoid when collecting the data
Wrong owner
The request goes to the sustainability team alone, even though the horizon split, risk/opportunity descriptions and item timing usually sit with planning, risk and business owners.
Framework language first
People ask for the data using disclosure labels instead of the organisation’s own terms, so teams cannot tell which internal report, register or plan to pull from.
No boundary set
The team starts collecting without agreeing which business units, sites, ventures or activities are in scope, so the final set is incomplete or double-counted.
Wrong time basis
The data is pulled for the wrong period or cut-off date, so the horizon labels and item timing no longer match the same reporting window.
Mixed counting basis
One pack combines item-level entries with summary totals, so the same risk or opportunity is counted once as a single case and again inside a roll-up.
Source labels lost
During consolidation, the original names from the source register, plan or tracker are stripped out, making it hard to trace each item back to its starting record.
Populations merged
Risks and opportunities, or short-, medium- and long-range items, are merged into one list even though they need to stay separate for analysis and review.
No evidence trail
The team keeps the numbers but not the supporting file names, version dates, owner notes or approval record, so reviewers cannot see how the data was built.
No sign-off path
Draft data is circulated informally and never gets a named reviewer or final approval, so nobody can confirm the source, scope and timing before disclosure drafting starts.
Where judgement is often needed
Set the horizon labels once and keep them stable
Choose a clear internal cut-off for short, medium and long periods, explain how it links to your planning view, and if you change the cut-offs after a deal or strategy reset, say what changed and why.
Align each risk or opportunity to the business plan it actually affects
Where different teams use different planning windows, map each item to the plan or forecast it most directly influences and explain any judgement where the timing does not line up neatly.
Describe each item in the language used by the operating team, then translate it consistently
If the same issue is named differently across countries or business units, pick one organisation-wide description, note the local variants if they matter, and explain the basis for the chosen label.
Decide how to treat items sitting partly inside and partly outside scope
For exposures that straddle entities, geographies or activities, state whether you have included the full item, only the in-scope portion, or excluded it, and explain the rule used to draw that line.
Be explicit when a portfolio changes because of acquisitions or disposals
If the reporting perimeter moved during the period, disclose whether the horizon mapping and item list reflect the opening position, the closing position, or an average view, and explain any restatement or non-restatement choice.
Use estimates where direct measurement is not available, and say so
When the timing or nature of a risk or opportunity cannot be measured directly, use a reasonable estimate, identify the main assumptions, and distinguish estimated figures from sourced operational data.
Round consistently and avoid false precision
Apply one rounding approach across the disclosure, make sure subtotals still reconcile to the whole, and note any material effect that rounding has on the figures or narrative.
Aggregate enough to protect sensitive location or workforce data
If naming a site, team or country would expose confidential information or personal data, group the information at a higher level, explain the aggregation rule, and keep the description useful for understanding the risk or opportunity.
Keep the time horizon attached to each item, not just the section
Where one risk or opportunity spans more than one period, show the horizon against each item rather than relying on a single section-level statement, and explain any overlap or split you have used.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — Electricity generation
We define our short, medium and long planning windows as 0–12 months, 1–5 years and beyond 5 years, and we use those same windows in our capital planning and risk review cycle.
- A near-term flood exposure at one coastal site is a physical risk; we expect it to affect maintenance access in the short window, with an estimated £4m of remedial spend already budgeted for that period.
- A medium-window shift in carbon pricing is a transition risk for our thermal fleet; we link it to our five-year investment plan, where £18m of retrofit work is scheduled, and the full programme cost is £18m.
- A long-window demand uplift from electrification is an opportunity; we treat it as a transition-related upside in our strategic plan, with £120m of additional revenue forecast over the long window against a £300m market opportunity.
This example shows how a reporter can explain its own time bands, connect them to planning, and then describe each item with its risk or upside type and the period it affects.
Illustrative (synthetic) example — Food processing
Our group uses three internal planning bands: up to 2 years, 2–7 years, and more than 7 years, and these are the same bands used in our operating plan and scenario work.
- A drought-related water shortage at two inland plants is a physical risk in the short band; we estimate £6m of production losses, which is 100% of the short-band exposure we have identified.
- A packaging regulation change is a transition risk in the medium band; we have set aside £9m for redesign and supplier changes, which is 75% of the £12m programme we expect to need.
- A consumer shift toward lower-carbon products is a transition opportunity in the long band; we expect £24m of incremental sales from a £40m addressable market, or 60% of that market.
This example demonstrates a different set of internal time bands, shows how each item is tied to the company’s planning process, and gives a separate timing label for each risk or opportunity.
How companies report S2-10 in practice
Examples of full and partial reporting practice. These are evidence-led reviews, not exact disclosure templates to copy.
Bank of America
None · United States · 2025
Bank of America's 2025 report provides a clear definition of short, medium, and long-term time horizons in relation to the entity's prospects and climate-related physical and transition risks (p.27). It also describes the climate resilience of the entity's strategy and business model, addressing risk identification and management processes linked to these timeframes (p.27). However, the report does not clearly disclose how these time horizons link to planning horizons (p.11) nor does it provide a detailed breakdown of time horizons by specific risk items.
CJ Cheiljedang Corporation
Food Production — Agricultural · South Korea · 2024
CJ Cheiljedang Corporation’s Sustainability Report 2024 clearly defines short-term as within 1 year, medium-term as within 5 years, and long-term as beyond 5 years (p.17). The report identifies physical climate risks such as temperature extremes, water stress, and pluvial flooding (p.28). However, the linkage between these time horizons and specific planning or risk management actions is unclear, as is a detailed description of climate-related risks and opportunities beyond general context (p.17, p.31).
SITC International Holdings Company Limited
Water Transportation · Hong Kong · 2025
SITC International Holdings Company Limited’s 2025 Environmental, Social and Governance Report provides evidence linking the definitions of short, medium, and long term to the planning horizons used for strategic decision-making (p.192). The report also identifies whether risks are climate-related physical or transition risks (p.192). However, it lacks a clear definition of the entity’s short, medium, and long-term time horizons, and the description of climate-related risks and opportunities remains unclear (pp.192-193).
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Scenarios to work through
A manufacturer has set three planning windows for its climate work: 0–2 years, 3–5 years and 6–15 years. It has identified a flood-related disruption risk at one site and a lower-carbon product opportunity, but the draft note only says both are 'long term'.
QHow should the team decide what to disclose for each item so the time framing is clear and tied to the organisation’s own planning windows?
Reveal model answer →Hide answer ↑Map each risk or opportunity to the planning window the business actually uses, then state that window in plain language for each item. If the organisation defines short, medium and long periods in a particular way, use those definitions consistently and show how each climate item fits them rather than using a generic label for everything.
Why this matters · The time frame should come from the entity’s own planning approach and be linked item by item to each climate matter.
A retailer has a heat-stress risk for warehouse staff and a chance to cut energy costs through rooftop solar. The draft groups both under 'transition risk' because they are both climate-related.
QWhat classification should the preparer make for each item, and how should the reasoning be presented?
Reveal model answer →Hide answer ↑Separate the items by the nature of the climate effect: the heat-stress issue is a weather- or event-driven exposure, while the rooftop solar case is a business change linked to the move to a lower-carbon model and is better described as an opportunity. The note should explain the nature of each item in ordinary business terms, not bundle unlike matters together.
Why this matters · Each climate item needs its own type label and explanation based on what is actually happening.
A utility has identified a drought-related supply issue affecting one region and a policy-driven cost increase affecting another. The first is expected to affect operations in the next 18 months, while the second is expected to matter over the next seven years, but the draft uses one combined description and one shared timing label.
QHow should the preparer present these items so the reader can see the separate nature and timing of each matter?
Reveal model answer →Hide answer ↑Describe each matter separately, with its own plain-language explanation and its own time frame. Do not merge different drivers or different timing into one catch-all statement; instead, show which issue sits in which planning window and what the business expects to happen in that window.
Why this matters · Different climate matters should be split out and each one matched to its own timing.
A food producer has a water-availability risk and a packaging redesign opportunity. The draft says both are 'climate risks', gives no explanation of the business effect, and leaves the timing to a footnote that does not match the main narrative.
QWhat should the preparer do to make the disclosure usable and aligned with the rest of the report?
Reveal model answer →Hide answer ↑Give a clear description of each item, state whether it is a downside exposure or an upside chance, and place the timing in the main narrative so it matches the rest of the climate discussion. The explanation should be understandable on its own and should connect back to the organisation’s planning horizons rather than relying on a separate note.
Why this matters · A good disclosure explains each climate matter clearly, shows whether it is a risk or an opportunity, and keeps the timing aligned with the main story.
Framework references
Relevant IFRS / ISSB requirements and related disclosures
Available framework references and nearby disclosures relevant to preparing this requirement.
Primary
Related & explore
FAQ
Questions this page answers
How do I use the s2-10 page to draft the disclosure from scratch?+−
Start with the plain-language explainer, then work through the step-by-step preparation section and the draft-output section. The page is set up to help you move from data collection to a first draft, rather than to act as an official source.
What data do I need to gather for s2-10 before I start writing?+−
The page says to prepare horizon definitions, the planning horizon link, the risk or opportunity narrative, the risk category, and item horizon timing. Those are the core datapoints to collect before drafting.
How should I define the horizon information for s2-10 in practice?+−
Use the page’s horizon definitions and the planning horizon link to keep the timing logic consistent. The item horizon timing should then sit alongside the risk or opportunity narrative and risk category.
Who should own the s2-10 data and narrative inputs?+−
The page is designed for sustainability/ESG managers, HR or data owners, and assurance reviewers, so ownership should sit with the people who can evidence the horizon, timing, and narrative inputs. The workbook and evidence pack are there to help assign and track that ownership.
What should I put in the evidence pack for s2-10 assurance readiness?+−
The page includes an evidence pack with five items to support assurance readiness. Use it to back up the claim, the risk or opportunity, and the evidence trail before you finalise the draft.
What are the five assurance claims I need to check for s2-10?+−
The page says there are five assurance claims to verify, each tied to a claim, risk, and evidence check. Use those checks to make sure the draft is supported before it goes into review.
What are the most common mistakes people make when reporting s2-10?+−
The page lists common reporting gaps and mistakes, so it is useful for a final sense-check before sign-off. It is especially helpful for spotting missing horizon detail, weak narrative support, or gaps between the draft and the evidence pack.
How do I use the Prep & Assurance workbook for s2-10?+−
The workbook is one of the page’s downloads and is meant to support preparation and assurance readiness. Use it to organise the required datapoints, track evidence, and turn the inputs into a cleaner draft.
What can I do with the synthetic example disclosure on the s2-10 page?+−
The synthetic example shows how the disclosure can look in practice, including a quantitative table where relevant. It is useful as a drafting reference, but it is illustrative only and should not be copied as a real company example.
Can I reuse my s2-10 data for ESRS E1 climate reporting?+−
The page notes ESRS E1 as the closest correspondence, so the same underlying data may be reusable across both contexts. That does not mean the reporting requirements are identical, so you still need to check the receiving framework separately.
More questions this page can help with
s2-10 disclosure checklist for horizon definitions and item timings2-10 planning horizon link explained for practitionerss2-10 evidence pack contents for assurance reviews2-10 common reporting mistakes and how to avoid thems2-10 workbook download how to use its2-10 draft narrative starters and content index lines2-10 synthetic example disclosure tables2-10 who should own the disclosure datas2-10 assurance claims to verify before sign-offs2-10 plain-language explainer for climate-related disclosuress2-10 from company reports examples pages2-10 ESRS E1 data reuse question
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