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ISSB Training Partner IFRS S2 · Climate-related Disclosures · Paragraph 10

Climate-related risks and opportunities

s2-10 · mandatory · narrative disclosure

The objective of this disclosure is to enable users of general purpose financial reports to understand the climate-related risks and opportunities that could reasonably be expected to affect the entity’s prospects.

Legal status

IFRS S1 and IFRS S2 were issued in June 2023 and are effective for annual reporting periods beginning on or after 1 January 2024.

Start preparing ↓ Official IFRS Foundation source ↗

Disclosure focus

Describe climate-related risks and opportunities affecting prospects; classify each risk as physical or transition; specify all applicable horizons of effects; and explain horizon definitions and their link to strategic planning. Apply IFRS S2.11–12 in identification.

This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS Foundation source.

Prepare

What to collect before drafting

Tick each field as the evidence lands. Owners are the teams that usually hold the source files.

  • Climate-related risk or opportunity

    Sustainability reporting / relevant process owner

    Describe each matter that could reasonably be expected to affect prospects.

    Evidence Current approved records and review evidence supporting climate-related risk or opportunity.

    Watch for The published response for climate-related risk or opportunity is incomplete or does not match the supporting records.

  • Effect on prospects — supporting field

    Sustainability reporting / relevant process owner

    Explain why it could affect cash flows, access to finance or cost of capital.

    Evidence Current approved records and review evidence supporting effect on prospects — supporting field.

    Watch for The published response for effect on prospects — supporting field is incomplete or does not match the supporting records.

  • Risk classification

    Sustainability reporting / relevant process owner

    For each risk, state whether it is physical or transition.

    Evidence Current approved records and review evidence supporting risk classification.

    Watch for The published response for risk classification is incomplete or does not match the supporting records.

  • Time horizon(s) of effects

    Sustainability reporting / relevant process owner

    Specify all short-, medium- or long-term horizons over which effects could occur.

    Evidence Current approved records and review evidence supporting time horizon(s) of effects.

    Watch for The published response for time horizon(s) of effects is incomplete or does not match the supporting records.

  • Definitions of time horizons

    Sustainability reporting / relevant process owner

    Explain how short, medium and long term are defined.

    Evidence Current approved records and review evidence supporting definitions of time horizons.

    Watch for The published response for definitions of time horizons is incomplete or does not match the supporting records.

  • Link to strategic planning horizons

    Sustainability reporting / relevant process owner

    Explain how definitions link to strategic decision-making horizons.

    Evidence Current approved records and review evidence supporting link to strategic planning horizons.

    Watch for The published response for link to strategic planning horizons is incomplete or does not match the supporting records.

  • Identification basis — supporting field

    Sustainability reporting / relevant process owner

    Document IFRS S2.11–12 application.

    Evidence Current approved records and review evidence supporting identification basis — supporting field.

    Watch for The published response for identification basis — supporting field is incomplete or does not match the supporting records.

Before you start

  • Have we identified entity-specific risks and opportunities affecting prospects, classified every risk, mapped all horizons of effects, defined the horizons and linked them to strategic planning, and applied IFRS S2.11–12?
＋ Show s2-10 sub-elements (LRA working checklist)

How to prepare it

Apply IFRS S2.11–12.
Determine which matters could affect prospects.
Draft entity-specific descriptions.
Classify each risk.
Assess all horizons of effects.
Define horizons and planning linkage.
Review materiality, aggregation and connected information.

Request the data

Request the disclosure evidence

Translate the disclosure into an internal business question — then adapt it to your organisation's own language.

Request entity-specific description, risk/opportunity status, prospects rationale, physical/transition classification for risks, all horizons of effects, supporting evidence, horizon definitions, planning linkage and industry-topic assessment. Remove arbitrary item counts and mandatory location fields.

Use the organisation's own role and document names, but preserve the defined IFRS / ISSB terms and the scope described above.

Better request

Request entity-specific description, risk/opportunity status, prospects rationale, physical/transition classification for risks, all horizons of effects, supporting evidence, horizon definitions, planning linkage and industry-topic assessment. Remove arbitrary item counts and mandatory location fields.

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

Describe each risk and opportunity; classify risks as physical or transition; specify all horizons of effects; define horizons and link them to strategic planning.

Context note

Apply IFRS S2.10 using the exact paragraph scope and cross-references stated in the official IFRS source.

Download Centre

Preparation tools & forms

Download preparation tools for s2-10 with free verified email access for 24 hours. Source-report links remain public.

Free · Email access
01XLSPrep & Assurance workbookDatapoints, risks, evidence to check, owner and evidence pack.Get it free ↧ 02XLSData-request packRequest email, message template, response fields and sign-off structure.Get it free ↧ 03PDFLibrary CardPrintable one-page summary of this disclosure card.Get it free ↧

Check

For each claim, check the evidence

  • Risks/opportunities affecting prospects described.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Every risk classified physical/transition.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • All horizons of effects specified.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Horizon definitions and planning linkage explained.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Reasonable/supportable information used.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Industry-based disclosure topics considered.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

Evidence pack to prepare

Common reporting gaps

  • Generic topic lists.
  • Missing prospects rationale.
  • Impacts not translated into risks/opportunities.
  • Opportunities incorrectly classified.
  • Risk classification absent.
  • One horizon forced.
  • Response timing used instead of effect timing.
  • Horizon definitions or planning linkage absent.
  • IFRS S2.11–12 not applied.
  • Content index treated as disclosure.
✓ Knowledge Hub AI Assistant · Human-in-the-loop
Dr Ross Kurinko

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Framework references

Relevant IFRS / ISSB requirements and related disclosures

IFRS / ISSB

s2-10

within IFRS S2: Climate-related Disclosures

Open official source →

Guides that settle this question

Are IFRS S1 and IFRS S2 Mandatory? →Can One Climate Dataset Support UK SRS S2, IFRS S2, ESRS E1, TCFD and CDP? →Climate risks, scenario analysis and resilience under IFRS S2 →First-Time Application of IFRS S1 and IFRS S2 →

Related & explore

Identification inputs and industry topics → CardObjective →Business model and value chain impact → CardStrategy response and transition plan → CardResourcing of climate actions →Browse all disclosures →

More in IFRS S2 →Browse full catalogue →Search all disclosures →

How this library is built 1,211 published reports indexed 315,012 pages with page-level citations 272 published cards in the active catalogue
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