Disclosure focus
This disclosure asks an organisation to describe the climate-related risks and opportunities it has identified and how they may affect the business. In practice, the report should explain what matters most, where those matters arise, and whether they could influence strategy, operations, finances, or resilience over time. The focus is on giving a clear picture of the organisation’s climate-related exposure, not just listing generic issues.
Practically, the emphasis is usually on coverage across the organisation as a whole, rather than only highlighting a few flagship sites or isolated examples. A useful explanation will show whether the assessment spans the full business, key geographies, major assets, and relevant parts of the value chain, and whether the organisation has considered both risks and opportunities in a consistent way.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS source.
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key datapoints to prepare
＋ Show s2-10 sub-elements (LRA working checklist)
Set out how your organisation defines the short, medium and long timeframes it uses.
Show how those timeframes connect to your planning periods.
Describe each risk or opportunity in practical terms.
State whether each risk is physical or linked to the transition.
Assign a time period to each item.
How to prepare it
1Set the reporting boundaries first: decide which risks and opportunities you will include, and make sure each one is tied to a specific time band used by the business.
2Agree the time bands in plain business terms: define what your organisation means by short, medium and long term, and show how those bands connect to your planning horizons.
3For every item you include, write a clear description and state whether it is a physical risk or a transition risk; keep the wording consistent across the register and the disclosure draft.
4Gather the supporting records for each item: internal papers, risk logs, planning documents, or other source material that shows the classification, the description, and the time band used.
5Build the disclosure from the evidence: prepare the narrative or figures so each item is matched to its own time horizon and the organisation’s defined short, medium or long term view.
6Before finalising, check the draft against the official source, note any exclusions or changes in approach, and confirm the wording still matches the underlying evidence.
Request the data
Request the climate risk and opportunity register inputs
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
What climate-related risks and opportunities has the business identified, how are they grouped into time bands, and how do those time bands connect to the organisation’s own planning horizons?
Use the organisation’s own labels first, then map them to the reporting categories. For example, if your business talks about planning windows, forecast periods, or strategic cycles, use those terms in the request and only translate them afterwards for the disclosure pack.
Weak request
Please provide the climate-related risks and opportunities disclosure data in line with the standard, including the entity’s definition of short, medium and long term and the link to planning horizons.
Why it fails: This is too close to framework language and does not tell the owner what to pull from their own systems. It also leaves the request vague about the business records, the internal labels, and the exact fields needed to make the information usable.
Better request
Please send the current climate risk and opportunity register for [period], using your own planning-window labels. For each item, include the plain-language description, whether it is a downside or upside item, the time band you use internally, how that band connects to your budget, forecast, or strategy cycle, and the source file or system. If you already have a register export, that is ideal.
Industry examples
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
Explain how the organisation defines its short, medium and long planning windows, how those windows connect to its wider planning approach, and how each risk or opportunity was assigned to a time band.
Context note
Set out what the figures show about which issues are expected to matter sooner or later, and how the mix of physical and transition matters changes across the different planning windows.
Fluctuation statement
If the pattern shifts from one period to another, note whether that is because the organisation changed its planning assumptions, identified new issues, or reassessed when particular risks or opportunities are likely to arise.
Content index entry
s2-10 Climate-related risks and opportunities — [location / page] / [notes]
Download Centre
Preparation tools & forms
Professional preparation tools for s2-10 — free with an LRA Community membership. Register once (it's free) and every download unlocks, together with the Disclosure Library, templates and the LRA AI-assistant.
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
The information is presented without a date or as-at point.The scope or boundary of the statement is left undefined.Key terms are used inconsistently across the report.Material changes since the previous period are not disclosed.Assertions are made without supporting detail or a source record.Boilerplate is used that does not actually answer what is asked.
Common gaps
Mistakes to avoid when collecting the data
Wrong owner
The request goes to the sustainability team alone, even though the horizon split, risk/opportunity descriptions and item timing usually sit with planning, risk and business owners.
Framework language first
People ask for the data using disclosure labels instead of the organisation’s own terms, so teams cannot tell which internal report, register or plan to pull from.
No boundary set
The team starts collecting without agreeing which business units, sites, ventures or activities are in scope, so the final set is incomplete or double-counted.
Wrong time basis
The data is pulled for the wrong period or cut-off date, so the horizon labels and item timing no longer match the same reporting window.
Mixed counting basis
One pack combines item-level entries with summary totals, so the same risk or opportunity is counted once as a single case and again inside a roll-up.
Source labels lost
During consolidation, the original names from the source register, plan or tracker are stripped out, making it hard to trace each item back to its starting record.
Populations merged
Risks and opportunities, or short-, medium- and long-range items, are merged into one list even though they need to stay separate for analysis and review.
No evidence trail
The team keeps the numbers but not the supporting file names, version dates, owner notes or approval record, so reviewers cannot see how the data was built.
No sign-off path
Draft data is circulated informally and never gets a named reviewer or final approval, so nobody can confirm the source, scope and timing before disclosure drafting starts.
Where judgement is often needed
Set the horizon labels once and keep them stable
Choose a clear internal cut-off for short, medium and long periods, explain how it links to your planning view, and if you change the cut-offs after a deal or strategy reset, say what changed and why.
Align each risk or opportunity to the business plan it actually affects
Where different teams use different planning windows, map each item to the plan or forecast it most directly influences and explain any judgement where the timing does not line up neatly.
Describe each item in the language used by the operating team, then translate it consistently
If the same issue is named differently across countries or business units, pick one organisation-wide description, note the local variants if they matter, and explain the basis for the chosen label.
Decide how to treat items sitting partly inside and partly outside scope
For exposures that straddle entities, geographies or activities, state whether you have included the full item, only the in-scope portion, or excluded it, and explain the rule used to draw that line.
Be explicit when a portfolio changes because of acquisitions or disposals
If the reporting perimeter moved during the period, disclose whether the horizon mapping and item list reflect the opening position, the closing position, or an average view, and explain any restatement or non-restatement choice.
Use estimates where direct measurement is not available, and say so
When the timing or nature of a risk or opportunity cannot be measured directly, use a reasonable estimate, identify the main assumptions, and distinguish estimated figures from sourced operational data.
Round consistently and avoid false precision
Apply one rounding approach across the disclosure, make sure subtotals still reconcile to the whole, and note any material effect that rounding has on the figures or narrative.
Aggregate enough to protect sensitive location or workforce data
If naming a site, team or country would expose confidential information or personal data, group the information at a higher level, explain the aggregation rule, and keep the description useful for understanding the risk or opportunity.
Keep the time horizon attached to each item, not just the section
Where one risk or opportunity spans more than one period, show the horizon against each item rather than relying on a single section-level statement, and explain any overlap or split you have used.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — Electricity generation and supply
We set our planning view as: short term = the next 12 months, medium term = years 2–5, and long term = years 6–15. That same timetable is used to explain each item below, so the timing of the issue and our planning window are aligned. - **Physical risk:** hotter summers and lower river flows could reduce output at two sites in the short term; we estimate a 3% fall in available generation in that period, with no medium- or long-term effect assumed in this example. - **Transition risk:** a faster move to tighter carbon rules could raise compliance and retrofit costs in years 2–5; in this synthetic case, the expected cash outflow is £18m in the medium term and £7m in the long term, with no short-term cost assumed.
This example shows how a reporter can define its own time bands, link them to planning, and then describe each climate-related issue by type and timing.
Illustrative (synthetic) example — Food processing and distribution
Our planning horizons are defined internally as: short term = 0–12 months, medium term = 13–36 months, and long term = 37–84 months, and we use those same bands when discussing climate-related matters in our plans. In this example, the timing of each matter is shown against those bands so readers can see when the effect is expected to arise. - **Transition risk:** a shift in customer demand toward lower-emission products could leave some legacy lines underused in the medium term; we assume a 9% drop in volume for those lines in that period, with no short- or long-term impact in this illustration. - **Opportunity:** investment in more efficient cold-chain equipment could cut energy use and improve margins in the long term; in this synthetic case, annual electricity use falls by 12% in years 4–7, while the short and medium periods are unchanged.
This example shows that the same horizon definitions can be used to describe both downside and upside climate-related matters, with each item tied to the period in which it is expected to matter.
How companies report s2-10
Real reports where this topic is disclosed. These are report practice, not exact disclosure templates to copy.
SITC International Holdings Company Limited
Water Transportation · Hong Kong · 2025
SITC International Holdings Company Limited’s 2025 Environmental, Social and Governance Report provides some contextual references to short, medium, and long-term time horizons related to its strategy for managing sustainability and climate-related risks and opportunities (pp.189, 192, 194). However, the report does not clearly define these time horizons or explicitly link them to specific planning horizons, with relevant mentions being unclear or partial (pp.192, 193). Additionally, there is no clear disclosure on the entity’s definition of short, medium, and long term, nor on the types of physical or transition risks considered (no pages).
Enel Chile S.A.
Electric Utilities / IPP / Energy Traders · Chile · 2025
Enel Chile’s 2025 Integrated Annual Report covers the link to planning horizons by identifying three horizons for managing sustainability-related risks and opportunities and for strategic planning (p.101). The report also addresses risk types related to physical and transition risks, noting the impact of energy transition and climate change on the Group’s activities (p.174). However, the entity’s clear definition of short, medium, and long-term time horizons remains unclear, with only partial context provided, and there is no explicit disclosure of time horizons by specific risk or opportunity items.
MTR Corporation
Ground Transportation — Railroads · Hong Kong · 2025
MTR Corporation’s Sustainability Report 2025 references short-, medium-, and long-term horizons to guide progress across focus areas under its environmental and social objectives, with some contextual mentions on pages 20 and 84 regarding timeframes for climate risks and project planning (p.20, p.84). The report also discusses long-term value creation through biodiversity integration and early-stage ecological impact planning (p.92, p.94). However, it lacks a clear, explicit definition of these time horizons, a detailed link to planning horizons, and a comprehensive description of risk opportunities or specific risk types, leaving some aspects unclear or not found.
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Scenarios to work through
A manufacturer has set three planning windows for its climate work: 0–2 years, 3–5 years and 6–15 years. It has identified a flood-related disruption risk at one site and a lower-carbon product opportunity, but the draft note only says both are 'long term'.
QHow should the team decide what to disclose for each item so the time framing is clear and tied to the organisation’s own planning windows?
Reveal model answer →Hide answer ↑Map each risk or opportunity to the planning window the business actually uses, then state that window in plain language for each item. If the organisation defines short, medium and long periods in a particular way, use those definitions consistently and show how each climate item fits them rather than using a generic label for everything.
Why this matters · The time frame should come from the entity’s own planning approach and be linked item by item to each climate matter.
A retailer has a heat-stress risk for warehouse staff and a chance to cut energy costs through rooftop solar. The draft groups both under 'transition risk' because they are both climate-related.
QWhat classification should the preparer make for each item, and how should the reasoning be presented?
Reveal model answer →Hide answer ↑Separate the items by the nature of the climate effect: the heat-stress issue is a weather- or event-driven exposure, while the rooftop solar case is a business change linked to the move to a lower-carbon model and is better described as an opportunity. The note should explain the nature of each item in ordinary business terms, not bundle unlike matters together.
Why this matters · Each climate item needs its own type label and explanation based on what is actually happening.
A utility has identified a drought-related supply issue affecting one region and a policy-driven cost increase affecting another. The first is expected to affect operations in the next 18 months, while the second is expected to matter over the next seven years, but the draft uses one combined description and one shared timing label.
QHow should the preparer present these items so the reader can see the separate nature and timing of each matter?
Reveal model answer →Hide answer ↑Describe each matter separately, with its own plain-language explanation and its own time frame. Do not merge different drivers or different timing into one catch-all statement; instead, show which issue sits in which planning window and what the business expects to happen in that window.
Why this matters · Different climate matters should be split out and each one matched to its own timing.
A food producer has a water-availability risk and a packaging redesign opportunity. The draft says both are 'climate risks', gives no explanation of the business effect, and leaves the timing to a footnote that does not match the main narrative.
QWhat should the preparer do to make the disclosure usable and aligned with the rest of the report?
Reveal model answer →Hide answer ↑Give a clear description of each item, state whether it is a downside exposure or an upside chance, and place the timing in the main narrative so it matches the rest of the climate discussion. The explanation should be understandable on its own and should connect back to the organisation’s planning horizons rather than relying on a separate note.
Why this matters · A good disclosure explains each climate matter clearly, shows whether it is a risk or an opportunity, and keeps the timing aligned with the main story.
Framework references
Related framework references
How this disclosure maps across the major reporting frameworks.
Primary
Related & explore
FAQ
Questions this page answers
How do I prepare disclosure s2-10 in practice using this page?+−
Start with the plain-language explainer, then work through the step-by-step preparation section and the datapoints to prepare. The page is set up to help you move from scope and method to a draft disclosure and an evidence pack.
What data do I need to collect for s2-10?+−
The page says to prepare horizon definitions, the planning horizon link, a risk or opportunity narrative, the risk category, and item horizon timing. Use those as the core inputs before drafting the disclosure.
How should I set the horizon definitions for s2-10?+−
The page flags horizon definitions as a datapoint to prepare, so you should define them clearly before drafting. Keep the definitions consistent with the rest of your disclosure and evidence pack.
Who should own the s2-10 data and narrative in my team?+−
The page is designed for sustainability/ESG managers, HR or data owners, and assurance reviewers, so ownership should sit with the people who can explain the data and support it with evidence. Use the step-by-step preparation section to assign who provides each datapoint and who reviews the final draft.
What should go into the evidence pack for s2-10 assurance?+−
The page includes an evidence pack with five items for assurance readiness, alongside five assurance claims to verify. Use those materials to show the claim, the related risk, and the supporting evidence in one place.
What are the common mistakes to avoid when drafting s2-10?+−
The page lists common reporting gaps and mistakes, so it is worth checking your draft against those before sign-off. In practice, that means making sure the required datapoints, narrative, and evidence all line up.
How do I use the Prep & Assurance workbook for s2-10?+−
The Download Centre includes a Prep & Assurance workbook in .xlsx format. Use it to organise the datapoints, evidence, and assurance checks before turning the information into a draft.
What can I take from the synthetic example disclosures for s2-10?+−
The page includes synthetic illustrative examples, including a quantitative table, to show how the disclosure can be presented. Treat them as examples of structure and wording flow, not as real company data.
How do I turn the s2-10 data into a draft disclosure?+−
The page has a draft-output section with visualisation ideas, narrative starters, and a content-index line. Use those to turn your prepared datapoints into a readable draft that is easier to review and assure.
Can I reuse the same s2-10 data for ESRS E1 climate change reporting?+−
The page says the closest ESRS correspondence is ESRS E1 (Climate Change), so there is a useful cross-framework link. You can reuse the data where it fits, but the page does not say the requirements are identical.
What does the risk category field mean in s2-10 and how should I fill it in?+−
Risk category is one of the datapoints the page tells you to prepare. Use the page’s step-by-step guidance and examples to keep the category consistent with the narrative and timing fields.
More questions this page can help with
s2-10 IFRS S2 climate-related disclosures practical checklist for sustainability managers2-10 datapoints to prepare horizon definitions planning horizon link risk narrativehow to assign ownership for s2-10 disclosure data and narratives2-10 assurance evidence pack what documents do I needcommon mistakes in s2-10 climate-related disclosures page guidancehow to use the s2-10 prep and assurance workbook xlsxs2-10 synthetic example disclosure table how to draft its2-10 content index line narrative starters visualisation ideass2-10 from company reports examples where topic is discloseds2-10 ESRS E1 climate change data reuse cross frameworks2-10 item horizon timing how to evidence its2-10 printable library card pdf what is it for
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