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ISSB Training Partner IFRS S2 · Climate-related Disclosures · Paragraph 6(b)

Management’s role in climate-related governance

s2-6-b · mandatory · narrative disclosure

The objective of climate-related financial disclosures on governance is to enable users of general purpose financial reports to understand the governance processes, controls and procedures the entity uses to monitor, manage and oversee climate-related risks and opportunities.

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

This disclosure requires the entity to explain management’s role in the governance processes, controls and procedures used to monitor, manage and oversee climate-related risks and opportunities.

The entity states whether that role is delegated to a specific management-level position or management-level committee and, if so, explains how oversight is exercised over that position or committee. It also states whether management uses controls and procedures to support climate oversight and, if so, explains how those controls and procedures are integrated with other internal functions.

The disclosure should describe the entity’s actual management arrangements. It should not be replaced by a description of the sustainability-reporting workflow, data collection controls or pre-publication review process.

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.

  • Management’s role

    Sustainability reporting / relevant process owner

    Describe management’s role in the governance processes, controls and procedures used to monitor, manage and oversee climate-related risks and opportunities.

    Evidence Current approved records and review evidence supporting management’s role.

    Watch for The published response for management’s role is incomplete or does not match the supporting records.

  • Delegation and oversight

    Sustainability reporting / relevant process owner

    State whether the role is delegated to a specific management-level position or management-level committee. If it is delegated, identify that position or committee and explain how oversight is exercised over it.

    Evidence Current approved records and review evidence supporting delegation and oversight.

    Watch for The published response for delegation and oversight is incomplete or does not match the supporting records.

  • Management controls and procedures

    Sustainability reporting / relevant process owner

    State whether management uses controls and procedures to support the oversight of climate-related risks and opportunities and describe those controls and procedures where applicable.

    Evidence Current approved records and review evidence supporting management controls and procedures.

    Watch for The published response for management controls and procedures is incomplete or does not match the supporting records.

  • Integration with other internal functions

    Sustainability reporting / relevant process owner

    If management uses such controls and procedures, explain how they are integrated with other relevant internal functions.

    Evidence Current approved records and review evidence supporting integration with other internal functions.

    Watch for The published response for integration with other internal functions is incomplete or does not match the supporting records.

Before you start

  • Can we describe management’s role in the governance processes, controls and procedures used to monitor, manage and oversee climate-related risks and opportunities?
  • Is that role delegated to a specific management-level position or management-level committee? If so, can we identify it and explain how oversight is exercised over it?
  • Does management use controls and procedures to support climate oversight? If so, can we describe them and explain how they are integrated with other relevant internal functions?
  • Have we separated management’s role from governance-body oversight under IFRS S2.6(a) and from the reporting-preparation workflow? Have we considered an integrated disclosure under IFRS S2.7?
＋ Show s2-6-b sub-elements (LRA working checklist)

How to prepare it

Identify management’s actual role in monitoring, managing and overseeing climate-related risks and opportunities.
Determine whether the role is delegated to a specific management-level position or management-level committee.
If delegation exists, identify the position or committee and document how oversight is exercised over it.
Determine whether management uses controls and procedures to support climate oversight and describe those arrangements.
Where such controls and procedures are used, document how they are integrated with other relevant internal functions.
Separate the management role from governance-body oversight under IFRS S2.6(a), the overall risk management integration requirement under IFRS S2.25(c), and controls used only to prepare the sustainability disclosure.
Gather current role descriptions, committee terms, delegation records, process documents, meeting papers and operating evidence.
Where climate and other sustainability governance is integrated, apply IFRS S2.7 to avoid unnecessary duplication.
Check the final disclosure directly against IFRS S2.6(b)(i)–(ii).

Request the data

Request the disclosure evidence

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

Please provide the current documentation for [reporting period] showing: management’s role in the governance processes, controls and procedures used to monitor, manage and oversee climate-related risks and opportunities; whether the role is delegated to a specific management-level position or management-level committee and, if so, the identity and responsibilities of that position or committee; how oversight is exercised over the delegated position or committee; whether management uses controls and procedures to support climate oversight and, if so, what those controls and procedures are; and how those controls and procedures are integrated with other relevant internal functions. Please attach the relevant organisation charts, role descriptions, committee terms, delegation documents, process maps, control documentation, meeting papers and evidence showing that the arrangements operated during the reporting period.

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

Better request

Please provide the current documentation for [reporting period] showing: management’s role in the governance processes, controls and procedures used to monitor, manage and oversee climate-related risks and opportunities; whether the role is delegated to a specific management-level position or management-level committee and, if so, the identity and responsibilities of that position or committee; how oversight is exercised over the delegated position or committee; whether management uses controls and procedures to support climate oversight and, if so, what those controls and procedures are; and how those controls and procedures are integrated with other relevant internal functions. Please attach the relevant organisation charts, role descriptions, committee terms, delegation documents, process maps, control documentation, meeting papers and evidence showing that the arrangements operated during the reporting period.

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 management’s role in the governance processes, controls and procedures used to monitor, manage and oversee climate-related risks and opportunities. State whether the role is delegated to a specific management-level position or management-level committee and, if so, identify it and explain how oversight is exercised over it. State whether management uses controls and procedures to support climate oversight and, if so, describe how they are integrated with other relevant internal functions. How to prepare it

Context note

Apply IFRS S2.6(b) using the exact paragraph scope and cross-references stated in the official IFRS source.

Download Centre

Preparation tools & forms

Download preparation tools for s2-6-b 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

  • The disclosure addresses management’s role accurately and completely.

    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.

  • The disclosure addresses delegation and oversight accurately and completely.

    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.

  • The disclosure addresses management controls and procedures accurately and completely.

    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.

  • The disclosure addresses integration with other internal functions accurately and completely.

    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

  • The disclosure describes the climate-reporting workflow rather than management’s role in climate governance.
  • A board or board committee is incorrectly identified as a management-level committee.
  • A sustainability manager or data owner is named without establishing that the role is management-level.
  • The disclosure assumes that management’s role is delegated but does not state whether delegation actually exists.
  • A delegated position or committee is identified, but the disclosure does not explain how oversight is exercised over it.
  • A reporting or data-control procedure is presented as though it were a control supporting climate oversight.
  • Management controls and procedures are described, but their integration with other relevant internal functions is not explained.
  • Finance, risk, audit and operations are merely listed without explaining how controls and procedures are integrated with them.
  • Internal audit’s independent assurance role is incorrectly described as management ownership of a control.
  • Integration into overall risk management under IFRS S2.25(c) is treated as a substitute for internal-function integration under IFRS S2.6(b)(ii).
  • Governance-body oversight under paragraph 6(a) and management’s role under paragraph 6(b) are merged into one unclear description.
  • The disclosure explains management’s role in setting targets even though it does not address the actual elements required by paragraph 6(b).
  • A generic statement that management oversees climate matters is provided without delegation, oversight or control information.
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Framework references

Relevant IFRS / ISSB requirements and related disclosures

IFRS / ISSB

s2-6-b

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 →

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