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ISSB Training Partner IFRS S2 · Climate-related Disclosures · Paragraph 13

Business model and value chain

s2-13 · mandatory · narrative disclosure

This disclosure enables users to understand the current and anticipated effects of climate-related risks and opportunities on the entity’s business model and value chain.

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.

Disclosure focus

Explain current and anticipated effects and concentrations using entity-specific categories; cross-reference paragraph 14 responses and paragraphs 15–21 financial effects.

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.

  • Current and anticipated effects

    Sustainability reporting / relevant process owner

    Describe the current and anticipated effects of climate-related risks and opportunities on the business model and value chain.

    Evidence Current approved records and review evidence supporting current and anticipated effects.

    Watch for The published response for current and anticipated effects is incomplete or does not match the supporting records.

  • Concentrations of risks and opportunities

    Sustainability reporting / relevant process owner

    Describe where climate-related risks and opportunities are concentrated using relevant entity-specific categories.

    Evidence Current approved records and review evidence supporting concentrations of risks and opportunities.

    Watch for The published response for concentrations of risks and opportunities is incomplete or does not match the supporting records.

Before you start

  • Ask whether current and anticipated effects and concentrations are described for each risk/opportunity, full value-chain concept applied and requirements separated from paragraphs 14 and 15–21.
+ Show s2-13 sub-elements (LRA working checklist)

How to prepare it

Start with S2.10–12 matters; determine scope; describe current effects; anticipated effects; concentrations; connect responses/financial effects/resilience; reassess after change; verify opportunities and evidence.

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 current effects, anticipated effects, concentrations, relevant relationships/operations, horizons, assumptions and evidence. Do not require all three geography/facility/asset breakdowns.

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

Better request

Request current effects, anticipated effects, concentrations, relevant relationships/operations, horizons, assumptions and evidence. Do not require all three geography/facility/asset breakdowns.

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 effects and concentrations for risks and opportunities; link to identified matter; use relevant concentration categories.

Context note

Apply IFRS S2.13 using the exact paragraph scope and cross-references stated in the official IFRS source.

Download Centre

Preparation tools & forms

Download preparation tools for s2-13 with free verified email access for 24 hours. Source-report links remain public.

Free · Email access

Check

For each claim, check the evidence

  • Current and anticipated effects 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.

  • Current versus anticipated distinguished.

    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.

  • Concentrations of risks and opportunities described with relevant categories.

    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.

  • Effects/concentrations linked to matters and supported by scope/evidence.

    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

  • Risks listed without effects.
  • Only current/anticipated.
  • Responses used as effects.
  • Paragraph 14 changes substituted.
  • Opportunities omitted.
  • Mandatory three-category breakdown.
  • Percentages without explanation.
  • Direct operations only.
  • Narrow supply-chain definition.
  • One boundary.
  • Generic wording.
✓ 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

s2-13

within IFRS S2: Climate-related Disclosures

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Guides that settle this question

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