London Reporting Academy·IFRS S1 / S2 Disclosure Guides
Search a practical IFRS S1 / S2 question, browse by reporting task or go straight to a disclosure. Each guide begins with the answer, identifies the relevant IFRS S1 / S2 source, explains where judgement remains and links to the disclosure cards affected by the decision.
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Published IFRS S1 / S2 guides
Every guide names what it helps you decide and which disclosures the decision moves, so you can tell whether it is yours without opening it.
IFRS S1 / S2·Pillar guide
Building the risk and opportunity register, sizing scenario analysis to the entity and disclosing resilience the evidence supports.
14 articles Read the guide →
IFRS S1 / S2·Pillar guide
Scope 1, 2 and 3 measurement, Scope 2 contractual instruments, Category 15 financed emissions and the December 2025 amendments.
9 articles Read the guide →
IFRS S1 / S2·Pillar guide
What to disclose when no ISSB standard names the topic, and which industry and entity-specific metrics to publish.
23 articles Read the guide →
IFRS S1 / S2·Pillar guide
What genuinely transfers between the ISSB standards and the other regimes a climate team reports into — and what only looks equivalent.
10 articles Read the guide →
IFRS S1 / S2·Toolkit·Data and evidence
A package-level toolkit containing LRA_IFRS_S1_Implementation_Registers.xlsx, with 5 related Knowledge Hub guides.
Helps you decideWhich package files and related guides belong to this toolkit?
Reviewed 11 Aug 2026 3 min Read the guide →
IFRS S1 / S2·Decision guide·Data and evidence
The matrix should convert the Standards into controlled review tests without reproducing or replacing the official text. Each row should record the relevant paragraph, applicability, materiality conclusion, draft location, evidence reference, owner, control, status, relief or exception and reviewer sign-off.
Helps you decideWhether each applicable requirement is supported by a materiality conclusion, evidence, control, draft location and sign-off.
Reviewed 11 Aug 2026 13 min Read the guide →
IFRS S1 / S2·Decision guide·Framework interoperability
Yes - one governed climate dataset and evidence model can support UK SRS S2, IFRS S2, ESRS E1, TCFD and CDP. It should not produce one undifferentiated disclosure.
Helps you decideHow to define the common source of truth and the framework-specific adjustment layer for every published output.
Reviewed 10 Aug 2026 13 min Read the guide →
IFRS S1 / S2·Decision guide·Framework interoperability
No. CDP can provide a valuable structured source of climate data and evidence, but completing the questionnaire or receiving a CDP score does not demonstrate compliance with UK SRS S2. CDP’s own IFRS S2 mapping states that the questionnaire, although aligned, should not be interpreted as strictly fulfilling IFRS S2.
Helps you decideHow to reuse CDP-aligned data while completing a separate UK SRS S1/S2 assessment and annual-report approval process.
Reviewed 10 Aug 2026 12 min Read the guide →
IFRS S1 / S2·Decision guide·Framework interoperability
A large part of the underlying climate dataset can be reused, especially the controlled GHG inventory, Scope 3 category assessment, base year, targets, transition actions, carbon-credit records, scenario inputs and evidence trail. The reporting narratives must remain distinct.
Helps you decideWhich data, methods and evidence can be common, and where separate materiality, narrative and claim controls are required.
Reviewed 10 Aug 2026 12 min Read the guide →
IFRS S1 / S2·Comparison·Framework interoperability
No. UK SRS S2 and ESRS E1 can share a substantial climate data and evidence base, but they are not interchangeable reporting requirements. UK SRS S2 applies the UK SRS S1 investor-focused materiality lens to climate-related risks and opportunities that could affect an entity’s prospects.
Helps you decideWhich data and evidence can be reused, and which framework-specific tests, disclosures and claims must remain separate.
Reviewed 10 Aug 2026 15 min Read the guide →
IFRS S1 / S2·Explainer·Omissions and claims
Directors should not approve UK SRS S2 by asking only whether the report reads well. They should challenge ten connected areas: the exact reporting basis and claim; material climate-related risks and opportunities; scenario-analysis design; the resilience conclusion; current and anticipated financial effects; the GHG inventory and Scope 3 quality; any UK reliefs and unresolved data gaps; industry metrics and targets; internal controls and review or assurance; and consistency across the annual report, CDP, GRI, websites and other public claims.
Helps you decideWhether the proposed disclosure and claim are supported by a complete reporting basis, materiality assessment, evidence, controls and appropriate approvals.
Reviewed 11 Aug 2026 15 min Read the guide →
IFRS S1 / S2·Explainer·Omissions and claims
IFRS S2 does not require every entity to set a climate or greenhouse-gas target. It requires disclosure of targets the entity has set and targets it is required to meet by law or regulation when the information is material.
Helps you decideIFRS S2 Climate Targets and Carbon Credits: Gross, Net and Credible Claims
Reviewed 11 Aug 2026 18 min Read the guide →
IFRS S1 / S2·Explainer·New standards and transition
IFRS S2 does not universally require an entity to have or publish a formal transition plan. It does require material information about how the entity is responding and plans to respond to climate-related risks and opportunities.
Helps you decideIFRS S2 Transition Plan Disclosures: Strategy, Assumptions, Resources and Progress
Reviewed 11 Aug 2026 15 min Read the guide →
IFRS S1 / S2·Explainer·Data and evidence
An asset manager should keep three boundaries visible. The first is the reporting entity and its own governance, strategy, risk processes, financial effects and operational emissions.
Helps you decideIFRS S2 for Asset Managers: Portfolio Boundaries, Data and Investor Disclosures
Reviewed 11 Aug 2026 14 min Read the guide →
IFRS S1 / S2·Explainer·Metrics and methodologies
An insurer should keep two connected but distinct climate-information lenses. For investment assets, IFRS S2 contains specific financed-emissions requirements covering absolute gross Scope 1, Scope 2 and Scope 3 emissions, industry and asset-class disaggregation, gross exposure, coverage, exclusions and methodology.
Helps you decideIFRS S2 for Insurers: Underwriting, Investments and Financed Emissions
Reviewed 11 Aug 2026 14 min Read the guide →
IFRS S1 / S2·Explainer·Metrics and methodologies
For a bank, IFRS S2 financed-emissions disclosure is not only a greenhouse-gas inventory exercise. The bank must disclose absolute gross financed emissions, disaggregated by Scope 1, Scope 2 and Scope 3 for each industry by asset class, together with gross exposure, portfolio coverage, exclusions and the calculation methodology.
Helps you decideIFRS S2 for Banks: Financed Emissions, Credit Risk and Climate Metrics
Reviewed 11 Aug 2026 16 min Read the guide →
IFRS S1 / S2·Explainer·Materiality and scope
IFRS S1 risk-management disclosure should explain the process, not only list risks. Describe the inputs, parameters, data sources and scope; whether and how scenario analysis supports identification; how nature, likelihood and magnitude are assessed; how sustainability-related risks are prioritised relative to other risks; how they are monitored; what changed from the previous period; the separate process for opportunities; and the extent to which these processes are integrated into and inform enterprise risk management.
Helps you decideIFRS S1 Risk Management Disclosures: Identification, Prioritisation and Integration into ERM
Reviewed 11 Aug 2026 15 min Read the guide →
IFRS S1 / S2·Explainer·Data and evidence
IFRS S1 strategy disclosure should explain the decision pathway for each material sustainability-related risk or opportunity. Describe the risk or opportunity and time horizon; explain current and anticipated effects and where exposure is concentrated in the business model and value chain; show the entity's response, resource allocation, progress and trade-offs; connect the issue to current and anticipated financial effects and financial planning; and explain resilience.
Helps you decideIFRS KH 04 Strategy Disclosures
Reviewed 11 Aug 2026 15 min Read the guide →
IFRS S1 / S2·Explainer·Assurance and controls
IFRS S1 and IFRS S2 governance disclosures should explain how oversight actually operates. Identify the responsible governance body or individual; show how responsibility is embedded in mandates; explain how skills are assessed or developed; describe what information is provided and how often; show how risks and opportunities affect strategy, major transactions, risk management and trade-offs; explain oversight of targets and remuneration; and describe management roles, controls and integration with other functions.
Helps you decideIFRS S1 and S2 Governance Disclosures: Board Oversight, Management Roles and Controls
Reviewed 11 Aug 2026 13 min Read the guide →
IFRS S1 / S2·Explainer·Assurance and controls
The four pillars are not independent chapters. They are connected views of the same sustainability-related risks and opportunities: governance explains oversight and controls; strategy explains effects, responses, trade-offs and financial consequences; risk management explains identification, assessment, prioritisation and monitoring; and metrics and targets explain performance and progress.
Helps you decideThe Four Pillars of IFRS S1 and IFRS S2: Governance, Strategy, Risk Management, Metrics and Targets
Reviewed 11 Aug 2026 10 min Read the guide →
IFRS S1 / S2·Decision guide·Materiality and scope
Identify sustainability-related risks and opportunities by starting with the entity's business model and value chain. Map the resources and relationships the entity depends on or affects; identify dependencies, impacts and external changes that could create risk or opportunity; trace credible pathways to cash flows, access to finance or cost of capital; assign short-, medium- and long-term horizons; and challenge completeness using internal and external sources.
Helps you decideHow to Identify Sustainability-Related Risks and Opportunities Under IFRS S1
Reviewed 11 Aug 2026 13 min Read the guide →
IFRS S1 / S2·Decision guide·Omissions and claims
IFRS S1 E5 permits an entity, only in its first annual reporting period applying IFRS S1, to report information about climate-related risks and opportunities only. The entity still applies IFRS S1 insofar as it relates to climate information and applies IFRS S2 in full, and it must disclose that it used the relief.
Helps you decideWhether to elect climate-first, what S1 requirements remain applicable and how to make the year-two transition.
Reviewed 11 Aug 2026 13 min Read the guide →
IFRS S1 / S2·Decision guide·Materiality and scope
First-time application should be designed as a controlled transition strategy, not a collection of informal shortcuts. IFRS S1 and IFRS S2 provide specific reliefs: no comparative information in the first annual reporting period; optional later publication in that first period; a climate-first option; temporary use of a previously used non-GHG-Protocol emissions method; and temporary omission of Scope 3 emissions.
Helps you decideWhich transition reliefs to use, how to disclose them, and how each choice affects the second reporting cycle.
Reviewed 11 Aug 2026 14 min Read the guide →
IFRS S1 / S2·Comparison·New standards and transition
A strong TCFD-aligned report provides a useful starting architecture for IFRS S2 because IFRS S2 integrates the four TCFD pillars and the 11 recommended disclosures. Transition is not, however, a re-labelling exercise.
Helps you decideWhich existing disclosures can be retained, which need greater specificity, and which new IFRS S1/S2 requirements need data, methods or approval?
Reviewed 10 Aug 2026 9 min Read the guide →
IFRS S1 / S2·Decision guide·Materiality and scope
When no IFRS Sustainability Disclosure Standard specifically applies to a sustainability-related risk or opportunity, IFRS S1 requires the entity to use judgement to identify information that is relevant to primary-user decisions and faithfully represents the risk or opportunity. The entity must refer to and consider applicable SASB metrics.
Helps you decideWhich sources and entity-specific information best meet IFRS S1 relevance and faithful-representation objectives?
Reviewed 10 Aug 2026 9 min Read the guide →
IFRS S1 / S2·Decision guide·Data and evidence
IFRS S2 requires climate-related scenario analysis to assess climate resilience, but it does not require every entity to start with complex financial modelling. The approach must be commensurate with the entity’s circumstances.
Helps you decideWhat scenario-analysis approach is commensurate with the entity’s exposure and available skills, capabilities and resources?
Reviewed 10 Aug 2026 11 min Read the guide →
IFRS S1 / S2·Decision guide·Materiality and scope
IFRS S1 requires an entity to refer to and consider the applicability of SASB disclosure topics when identifying sustainability-related risks and opportunities and to refer to and consider SASB metrics when preparing disclosures in the absence of a specific IFRS Sustainability Disclosure Standard. Consideration is mandatory; automatic application of every SASB topic or metric is not.
Helps you decideHow to Use SASB Standards When Applying IFRS S1
Reviewed 11 Aug 2026 15 min Read the guide →
IFRS S1 / S2·Decision guide·Metrics and methodologies
IFRS S1 requires an entity to refer to and consider the SASB Standards when identifying sustainability-related risks and opportunities and when identifying information to disclose. IFRS S2 applies the same mandatory refer-and-consider logic to the Industry-based Guidance on Implementing IFRS S2.
Helps you decideWhich industries, disclosure topics, metrics and activity metrics are relevant to the reporting entity and to distinct parts of the group?
Reviewed 10 Aug 2026 11 min Read the guide →
IFRS S1 / S2·Decision guide·Data and evidence
Climate resilience under IFRS S2 is the entity’s assessed capacity to adjust or adapt its strategy and business model to climate-related changes, developments and uncertainties. It is not a generic statement that the business is “resilient”.
Helps you decideWhat capacity does the entity actually have to adjust or adapt, over what horizon, with which resources, assets, investments and constraints?
Reviewed 10 Aug 2026 11 min Read the guide →
IFRS S1 / S2·Decision guide·Omissions and claims
An entity may make an explicit and unreserved statement of compliance with IFRS Sustainability Disclosure Standards only when its disclosures comply with all applicable requirements. The statement is the final conclusion of the reporting process, not a flexible marketing phrase.
Helps you decideIFRS S1 Compliance Statement, Report Location and Publication Timing Explained
Reviewed 11 Aug 2026 16 min Read the guide →
IFRS S1 / S2·Decision guide·Materiality and scope
IFRS S1 and IFRS S2 use two distinct proportionality mechanisms in specified requirements. The first limits the information search to all reasonable and supportable information available at the reporting date without undue cost or effort.
Helps you decideWhat information must be searched for, how sophisticated an approach must be, or whether a permitted qualitative alternative applies.
Reviewed 11 Aug 2026 13 min Read the guide →
IFRS S1 / S2·Decision guide·Materiality and scope
IFRS S1 already requires disclosure of material nature-related risks and opportunities that could reasonably be expected to affect an entity’s prospects. Dependencies on nature and impacts on nature are important because they can create physical, transition, systemic and opportunity pathways to cash flows, access to finance or cost of capital.
Helps you decideWhich nature interfaces create risks or opportunities that could affect prospects, and what material information is needed?
Reviewed 10 Aug 2026 8 min Read the guide →
IFRS S1 / S2·Explainer·Metrics and methodologies
IFRS S1 does not prescribe one universal sustainability KPI list. An entity must disclose metrics required by an applicable IFRS Sustainability Disclosure Standard and the metrics it uses to monitor each material sustainability-related risk or opportunity and its performance in relation to that matter.
Helps you decideIFRS S1 Metrics and Targets: Industry-Based, Entity-Specific and Performance Disclosures
Reviewed 11 Aug 2026 16 min Read the guide →
IFRS S1 / S2·Decision guide·Materiality and scope
Under IFRS S1, materiality is assessed for information, not by declaring an ESG topic material through a universal score. First identify sustainability-related risks and opportunities that could reasonably be expected to affect the entity's prospects.
Helps you decideWhich information must be included, omitted, aggregated, disaggregated or supplemented to meet primary users' information needs?
Reviewed 11 Aug 2026 16 min Read the guide →
IFRS S1 / S2·Comparison·Framework interoperability
IFRS S1/S2 and the GRI Standards answer different but complementary reporting questions. IFRS Sustainability Disclosure Standards provide primary users of general purpose financial reports with material information about sustainability-related risks and opportunities that could affect the entity’s prospects.
Helps you decideState the distinct but complementary purposes and reject automatic equivalence.
Reviewed 11 Aug 2026 20 min Read the guide →
IFRS S1 / S2·Comparison·Framework interoperability
IFRS S1/S2 and ESRS overlap substantially, but they are not interchangeable. IFRS Sustainability Disclosure Standards are designed principally for investors, lenders and other creditors and use an investor-focused materiality lens: information is material when it could reasonably influence decisions about providing resources to the entity.
Helps you decideState why overlap is not equivalence and identify the two materiality lenses.
Reviewed 11 Aug 2026 22 min Read the guide →
IFRS S1 / S2·Decision guide·Framework interoperability
Yes. One controlled master data and evidence model can support IFRS S1/S2, ESRS, GRI and CDP and can substantially reduce repeated collection, calculation and review. It cannot produce one universal materiality conclusion, boundary, reporting period, level of granularity or compliance claim.
Helps you decideWhich information can be mastered once and which judgements or transformations must remain framework-specific?
Reviewed 10 Aug 2026 8 min Read the guide →
IFRS S1 / S2·Decision guide·Data and evidence
Preparing an IFRS S1 and IFRS S2 report is not a drafting exercise that starts with a disclosure checklist. It is a controlled reporting project.
Helps you decideHow to Prepare an IFRS S1 and IFRS S2 Report
Reviewed 11 Aug 2026 18 min Read the guide →
IFRS S1 / S2·Decision guide·Data and evidence
A first reporting cycle should begin with the reporting basis, governance and risk universe, not with drafting. Over 12 months, the entity should lock scope and adoption decisions; identify material risks and opportunities using the required source hierarchy; develop climate assessment and scenario analysis; connect conclusions to budgets and financial effects; build industry metrics and GHG data; operate a dry run and evidence-based controls; complete drafting and comparatives; and finish with independent challenge, board approval and publication at the required time.
Helps you decideHow to sequence adoption, technical analysis, data, finance, controls, review and approval so the reporting cycle can finish on time.
Reviewed 11 Aug 2026 17 min Read the guide →
IFRS S1 / S2·Decision guide·Materiality and scope
A useful IFRS S1 and S2 gap assessment tests more than whether draft text exists. It should map each applicable requirement to a materiality conclusion, evidence, owner, control, draft location and review status; score whether the process is designed and operating; and prioritise remediation by compliance consequence, lead time, dependency and evidence weakness.
Helps you decideWhich workstreams and gaps must be remediated first to support a complete, controlled and defensible disclosure package.
Reviewed 11 Aug 2026 14 min Read the guide →
IFRS S1 / S2·Decision guide·Materiality and scope
IFRS S1 requires material information about human capital risks and opportunities when workforce-related dependencies, impacts or conditions could reasonably be expected to affect the entity’s prospects. The assessment can cover the entity’s own workforce and workers in the value chain, depending on the business model and exposure.
Helps you decideWhich workforce matters create risks or opportunities affecting prospects, and which metrics faithfully represent them?
Reviewed 10 Aug 2026 8 min Read the guide →
IFRS S1 / S2·Decision guide·Materiality and scope
Directors should approve the disclosure package only after they can explain how management identified material sustainability-related risks and opportunities, connected them to strategy and financial planning, supported climate resilience and greenhouse gas information, applied reliefs and judgements, operated disclosure controls and reached the proposed compliance conclusion. IFRS S1 and IFRS S2 do not prescribe a separate ten-question board procedure; the agenda in this article is an implementation tool for discharging oversight and testing whether the published claims are supported by evidence.
Helps you decideWhether the disclosure package is sufficiently complete, connected, evidenced and controlled for approval and any proposed compliance statement.
Reviewed 11 Aug 2026 17 min Read the guide →
IFRS S1 / S2·Decision guide·Metrics and methodologies
IFRS S2 does not simply copy the financial-statement consolidation boundary into the GHG inventory. The sustainability disclosures use the same reporting entity as the related financial statements, but greenhouse gas emissions are measured using a GHG consolidation approach - equity share or control under the GHG Protocol, unless a jurisdiction or exchange requires another method for a specified part of the entity.
Helps you decideWhich operations and investees are included, how emissions are consolidated, where local methods apply and how the resulting figures are presented.
Reviewed 11 Aug 2026 14 min Read the guide →
IFRS S1 / S2·Decision guide·Metrics and methodologies
Under amended IFRS S2, financed emissions are the portion of an investee’s or counterparty’s gross emissions attributed to an entity’s loans and investments and form part of Scope 3 Category 15. An entity may limit Category 15 to financed emissions, but must explain what it treats as derivatives and which financial activities are excluded.
Helps you decideHow to set the Category 15 boundary, apply the financed-emissions disclosures and control AUM, gross exposure, asset classes, coverage and classifications.
Reviewed 10 Aug 2026 18 min Read the guide →
IFRS S1 / S2·Decision guide·Reporting boundaries
IFRS S2 requires an entity to consider its entire upstream and downstream value chain and all 15 GHG Protocol Scope 3 categories, then disclose which categories are included in the Scope 3 measure. The inventory can and usually will use estimates.
Helps you decideWhich categories are included, how the value-chain boundary is set, what data is proportionate and how quality and limitations are disclosed.
Reviewed 10 Aug 2026 17 min Read the guide →
IFRS S1 / S2·Decision guide·Metrics and methodologies
IFRS S2 requires an entity to disclose location-based Scope 2 greenhouse gas emissions. It also requires information about contractual instruments only when such instruments exist and the information helps users understand the Scope 2 emissions.
Helps you decideHow to calculate the required location-based amount and what contractual or market-based information should accompany it.
Reviewed 10 Aug 2026 14 min Read the guide →
IFRS S1 / S2·Decision guide·New standards and transition
The December 2025 amendments make targeted changes to IFRS S2 rather than replacing its GHG architecture. They clarify that a required jurisdictional or exchange method can be used for the affected part of an entity, permit required alternative GWP values for that part, allow an entity to limit Category 15 measurement to financed emissions, introduce transparency about derivatives and excluded financial activities, require a total Category 15 amount plus a financed-emissions subtotal when Category 15 is included, and refine industry-classification requirements for financed-emissions disclosures.
Helps you decideWhether to early apply, which reliefs are relevant, what data-model changes are needed, and how to prepare comparatives for 2027.
Reviewed 10 Aug 2026 16 min Read the guide →
IFRS S1 / S2·Decision guide·Metrics and methodologies
IFRS S2 requires an entity to disclose its absolute gross Scope 1, Scope 2 and Scope 3 greenhouse gas emissions generated during the reporting period, expressed in metric tonnes of CO2 equivalent and subject to materiality. The entity normally measures emissions using the GHG Protocol Corporate Standard, applies an equity-share or control approach, and explains the method, inputs, assumptions and emission factors used.
Helps you decideWhat emissions are within each scope, which entities and value-chain activities are included, how are they measured, and what limitations must be explained?
Reviewed 10 Aug 2026 16 min Read the guide →
IFRS S1 / S2·Decision guide·Metrics and methodologies
The CFO should treat IFRS S1 and IFRS S2 as an extension of the general purpose financial reporting system, not as a narrative sustainability appendix. Finance should connect material sustainability-related risks and opportunities to planning assumptions, line items, cash-flow drivers, capital expenditure, funding and accounting judgements; reconcile data and assumptions with the related financial statements to the extent possible; and operate a controlled year-end close for metrics, estimates and disclosures.
Helps you decideHow finance should connect sustainability information to planning, accounting, funding, controls and year-end sign-off.
Reviewed 11 Aug 2026 16 min Read the guide →
IFRS S1 / S2·Decision guide·Metrics and methodologies
IFRS S1 and IFRS S2 require an entity to explain how sustainability-related risks and opportunities affect financial position, financial performance and cash flows in the reporting period, and how those effects are anticipated to change over the short, medium and long term. The disclosure combines quantitative and qualitative information and must reflect how the matters are included in financial planning.
Helps you decideCurrent and Anticipated Financial Effects Under IFRS S1 and S2: A Practical Guide
Reviewed 11 Aug 2026 17 min Read the guide →
IFRS S1 / S2·Decision guide·Materiality and scope
After the first-year transition relief ends, IFRS S1 generally requires preceding-period comparative information for every amount disclosed and narrative or descriptive comparatives when useful for understanding the current period. The treatment of a changed amount depends on why it changed.
Helps you decideWhether a prior-period amount must be shown, revised or restated, and what explanation and publication correction are required.
Reviewed 11 Aug 2026 16 min Read the guide →
IFRS S1 / S2·Decision guide·Data and evidence
IFRS S1 and IFRS S2 do not require perfect data before useful sustainability-related financial information can be reported. Reasonable estimates, proxies, modelled data and ranges can be necessary and appropriate when direct measurement is unavailable, provided the resulting information is faithfully represented, material methods and assumptions are explained, and significant measurement uncertainty is transparent.
Helps you decideWhether an estimate is usable, how it should be measured and controlled, and what uncertainty and limitations must be disclosed.
Reviewed 11 Aug 2026 14 min Read the guide →
IFRS S1 / S2·Decision guide·Assurance and controls
IFRS S1 and IFRS S2 do not prescribe COSO, SOX or any other named internal-control framework. They do, however, require information that is material, fairly presented, connected, timely and supported by consistent data and assumptions.
Helps you decideExplain what IFRS requires and what it does not prescribe about controls.
Reviewed 11 Aug 2026 20 min Read the guide →
IFRS S1 / S2·Decision guide·Data and evidence
The IFRS Sustainability Disclosure Taxonomy provides the digital elements needed to make IFRS S1 and IFRS S2 disclosures computer-readable. It does not itself make tagging mandatory: a securities regulator, stock exchange or other jurisdictional authority decides whether an entity must file digitally, which taxonomy entry point and format to use, whether local extensions are permitted, and which validation rules apply.
Helps you decideExplain what the taxonomy does and who decides whether tagging is mandatory.
Reviewed 11 Aug 2026 18 min Read the guide →
IFRS S1 / S2·Decision guide·Materiality and scope
IFRS S2 requires an entity to identify climate-related physical risks, transition risks and opportunities that could reasonably be expected to affect its prospects, using all reasonable and supportable information available without undue cost or effort. Each identified risk is classified as physical or transition, linked to short-, medium- or long-term horizons and traced to concentrations in the business model and value chain.
Helps you decideWhich physical risks, transition risks and opportunities could reasonably affect the entity’s prospects, where are they concentrated, and how are they managed and measured?
Reviewed 10 Aug 2026 11 min Read the guide →
IFRS S1 / S2·Decision guide·Metrics and methodologies
The IFRS S1 reporting entity is the same entity as the related financial statements. If those statements are consolidated, the sustainability-related financial disclosures cover the parent and its consolidated subsidiaries as one reporting entity.
Helps you decideIFRS S1 Reporting Entity and Boundary: Financial Statements, Value Chain and GHG Data
Reviewed 11 Aug 2026 15 min Read the guide →
IFRS S1 / S2·Decision guide·Data and evidence
IFRS S1 and IFRS S2 form one investor-focused reporting system. IFRS S1 sets the general requirements for disclosing material information about sustainability-related risks and opportunities that could reasonably be expected to affect an entity's prospects.
Helps you decideWhat information belongs in investor-focused sustainability-related financial disclosures and what is required for an ISSB compliance statement.
Reviewed 11 Aug 2026 18 min Read the guide →
IFRS S1 / S2·Decision guide·Assurance and controls
Assurance readiness is achieved when each material IFRS S1 or IFRS S2 disclosure can be traced from the published claim to an approved reporting requirement, documented judgement, source data, methodology, control, reviewer and governance sign-off. It is not a final-week evidence collection exercise.
Helps you decideDefine assurance readiness without implying a universal assurance mandate.
Reviewed 11 Aug 2026 19 min Read the guide →
IFRS S1 / S2·Comparison·Framework interoperability
IFRS S1 and IFRS S2 are not alternatives. IFRS S1 sets the general requirements for sustainability-related financial disclosures across all risks and opportunities that could reasonably be expected to affect an entity's prospects.
Helps you decideWhich requirements are general, which are climate-specific and how to design one integrated reporting process.
Reviewed 11 Aug 2026 14 min Read the guide →
IFRS S1 / S2·Decision guide·New standards and transition
IFRS S1 and IFRS S2 are not automatically mandatory for every entity worldwide. Their effective date tells an entity when the Standards can be applied as issued by the ISSB; it does not itself create a legal reporting obligation.
Helps you decideWhat binding reporting obligation applies to the entity, from which period, and what reporting claim is supportable?
Reviewed 11 Aug 2026 16 min Read the guide →
Know the disclosure already?
Every guide names the disclosures its decision moves, and each one resolves to its card: the fields to prepare, the owners to name, the evidence to retain, the wording to draft, and the published IFRS S1 / S2 reports that already answered it.
Four depths of guidance
The whole subject, from first principles to sign-off.
One practical question a reporting team has to settle.
A concise answer to something that closes in a paragraph.
A defensible review method, for reviewers and assurance teams.
LRA Reporting Assistant
Ask in your own words — the assistant looks for the meaning, not only the same phrase.
If relevant Hub material exists, the answer links to it. If nothing relevant is published, the assistant says so before giving a clearly labelled general answer.
How every guide is built
You should be able to stop reading after the first paragraph and still have what you came for. Everything below it exists so you can defend the answer to a reviewer.
The question is stated as a reporting team would ask it, and settled in the opening lines.
The IFRS S1 / S2 requirement and edition are named, and kept clearly apart from our reading of them.
The points the standard leaves open are marked, with what a defensible position looks like.
The guide links to the disclosures and evidence it moves, so a decision turns into fields to fill.
Technical leadership
Dr Ross Kurinko
Strategic ESG Advisor · IFRS S1 & S2 / GRI / ESRS
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