Disclosure focus
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.
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.
Before you start
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key information to prepare
| Preparation field | What to capture | Evidence hint | Owner |
|---|---|---|---|
| Climate-related risk or opportunity | Describe each matter that could reasonably be expected to affect prospects. | Current approved records and review evidence supporting climate-related risk or opportunity. | Sustainability reporting / relevant process owner |
| Effect on prospects — supporting field | Explain why it could affect cash flows, access to finance or cost of capital. | Current approved records and review evidence supporting effect on prospects — supporting field. | Sustainability reporting / relevant process owner |
| Risk classification | For each risk, state whether it is physical or transition. | Current approved records and review evidence supporting risk classification. | Sustainability reporting / relevant process owner |
| Time horizon(s) of effects | Specify all short-, medium- or long-term horizons over which effects could occur. | Current approved records and review evidence supporting time horizon(s) of effects. | Sustainability reporting / relevant process owner |
| Definitions of time horizons | Explain how short, medium and long term are defined. | Current approved records and review evidence supporting definitions of time horizons. | Sustainability reporting / relevant process owner |
| Link to strategic planning horizons | Explain how definitions link to strategic decision-making horizons. | Current approved records and review evidence supporting link to strategic planning horizons. | Sustainability reporting / relevant process owner |
| Identification basis — supporting field | Document IFRS S2.11–12 application. | Current approved records and review evidence supporting identification basis — supporting field. | Sustainability reporting / relevant process owner |
How to prepare it
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
Professional preparation tools for s2-10 — free with verified email access. Enter the code we send you once and use downloads, report links and the LRA AI Assistant for 24 hours.
Assurance readiness
For each claim, check the evidence
| Claim | Risk | Evidence to check |
|---|---|---|
| Risks/opportunities affecting prospects described. | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
| Every risk classified physical/transition. | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
| All horizons of effects specified. | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
| Horizon definitions and planning linkage explained. | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
| Reasonable/supportable information used. | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
| Industry-based disclosure topics considered. | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
Evidence pack to prepare
Common reporting gaps
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Framework references
Relevant IFRS / ISSB requirements and related disclosures
Available framework references and nearby disclosures relevant to preparing this requirement.
IFRS / ISSB
s2-10
within IFRS S2: Climate-related Disclosures
Guides that settle this question
Related & explore
More in IFRS S2 → Browse full catalogue → Disclosure Library home → Search all disclosures →
Go deeper · s2-10
Learn to prepare this disclosure end-to-end
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