Disclosure focus
This disclosure asks an organisation to explain the processes it uses to identify, assess and manage climate-related opportunities. In practice, that means describing how opportunity work is built into decision-making, who is involved, what information is used, and how the organisation keeps track of opportunities over time. The focus is on the actual management process, not just a list of hoped-for benefits.
The practical question is whether this applies only to a few headline projects or is embedded across the business. A useful explanation would show the scope of coverage across operations, business units, geographies and stages of the value chain, and make clear whether the process is used consistently or only for selected sites or initiatives.
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 s2-25-b sub-elements (LRA working checklist)
Show how the issue feeds into strategy and planning decisions.
Track progress and revisit the matter regularly.
Use a process to spot opportunities.
Apply criteria to rank what matters most.
Use scenarios where helpful to test possible futures.
How to prepare it
1Start by pinning down the exact planning link you will describe, so the disclosure sits clearly inside the organisation’s wider strategy work rather than as a stand-alone note.
2Set out the practical method used to spot opportunities, including how the business looks for them and what triggers them to be considered in the first place.
3Define the rules you use to rank those opportunities, and make sure the basis for comparing and ordering them is written down in a way others can follow.
4Gather the supporting material that shows how scenario analysis is used in the process, with enough detail to explain where it fits and what it informs.
5Compile the evidence that shows the process is monitored and checked over time, including any internal review records or management oversight notes that support the narrative.
6Before finalising, compare your draft against the official source, then record any exclusions, wording changes, or scope decisions so the published text can be traced back to the underlying material.
Request the data
Request the climate opportunity process evidence from Strategy
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
How do we identify, assess, prioritise, monitor and review climate-related opportunities, and how is that work connected to strategic planning?
Use your organisation’s own names for the relevant process, planning forum, review cycle and scenario work first, then map them back to the disclosure points. Keep the request in business language that the owner already uses, and check the official source before sign-off.
Weak request
Please provide the climate-opportunity process disclosure evidence for IFRS S2 25(b), including the identification process, prioritisation criteria, scenario use, monitoring and review, and linkage to strategic planning.
Why it fails: This uses framework language that many business owners will not recognise, so it is harder for them to find the right material quickly. It also sounds like a compliance checklist rather than a request for the organisation’s own planning and review evidence.
Better request
Please send the latest strategy and planning materials for [reporting period] that show how your team spots climate-related opportunities, decides which ones matter most, checks progress, and uses scenario work where relevant. If your team uses different names for these steps, use those names and add a short note so we can map them back.
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
We describe the basis used to identify, screen and rank climate-related opportunities, including how the process links into strategic planning, what criteria are applied, how often it is reviewed and where scenario analysis is used.
Context note
This tells readers how the organisation turns climate-related opportunity signals into business decisions, showing whether the approach is embedded in planning and how consistently it is applied.
Fluctuation statement
If the process changed during the period, explain whether that was due to a refresh of planning inputs, a revised set of ranking criteria, a different review cadence or a broader use of scenario analysis.
Content index entry
s2-25-b Climate-opportunity processes — [location / page] / [notes]
Download Centre
Preparation tools & forms
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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 evidence sits with strategy, risk, finance or the business unit that actually runs the process.
Framework language only
People ask for answers in disclosure terms instead of the organisation’s own process names, so teams cannot match the request to their day-to-day records.
Scope left vague
The data pull does not say which business lines, regions, subsidiaries or time period are in scope, so different teams send different populations.
Wrong timing basis
The team mixes current-year activity with forward-looking planning or a different reporting cut-off, which makes the process record inconsistent.
Counting bases mixed
One source is counted by number of reviews, another by number of projects or people, and the final pack combines them as if they were the same measure.
Source labels lost
Original file names, system tags or document titles are stripped out during collation, so reviewers cannot trace each line back to the source record.
Separate groups merged
Opportunity work for different units, products or regions is rolled into one total even though the underlying process and owner are not the same.
Evidence trail missing
The pack contains the answer but not the supporting note, date, version history or sign-off record, so no one can show how the figure was checked.
Where judgement is often needed
Acquisitions and disposals during the reporting period
Set a clear cut-off for which business units sit inside the process description this period, and explain any additions or removals caused by buying, selling, or closing operations.
Different country practices for the same process step
Where local teams use different names or methods for the same activity, describe the common group-wide approach and note any country-specific variations that affect how the process works in practice.
Teams or assets close to the inclusion line
State how you treat operations, projects, or staff that sit near the boundary of the process, and explain the rule used to decide whether they are included or left out.
Choosing the timing basis for the description
If the process has changed during the year, make clear whether the disclosure reflects the position at period end, an average view, or another chosen timing basis, and explain why that basis was used.
Using estimates where direct records are incomplete
When the process description relies partly on management judgement or estimates, identify which parts are estimated, what evidence supports them, and how you distinguish them from directly observed information.
Rounding and level of detail
Apply a consistent rounding approach and explain it if it could affect interpretation, especially where small differences might change how the process is understood.
Protecting sensitive information through grouping
If naming a team, site, or market would expose confidential or personal information, group the information at a higher level and say how the grouping still gives a fair picture of the process.
Linking the process to planning, review, and scenario work
Where the process feeds into planning, oversight, or scenario analysis, explain the practical link in your own operating language and make clear which parts are used for each purpose.
Prioritisation rules when opportunities compete
If more than one opportunity could be taken forward, describe the criteria used to rank them and note any judgement calls where similar opportunities were treated differently.
Updating the process after a review cycle
If monitoring leads to changes in how opportunities are identified or assessed, explain what changed, when it changed, and whether the revised approach was applied only prospectively or also to earlier periods.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — Electricity generation
We fold climate-related opportunities into our medium-term business plan, so the same assumptions used for capital allocation also shape our growth targets and operating budgets. - Each quarter, management checks progress against the plan, updates the risk-and-opportunity register, and escalates material changes to the board and its committees. - We scan for opportunities through market analysis, customer demand signals, technology reviews, and policy tracking; we then rank them using expected margin uplift, implementation cost, timing, and fit with our decarbonisation pathway. - For major choices, we test two climate futures over a 10-year horizon and use the results to compare investment timing, asset resilience, and product mix; in the latest review, 6 of 9 identified opportunities were prioritised for action, representing 67% of the pipeline.
This example shows how a reporter can explain where opportunity work sits in planning, how it is checked over time, how opportunities are found, what criteria are used to sort them, and how scenario analysis informs decisions.
Illustrative (synthetic) example — Food manufacturing
Our opportunity work is built into the annual strategy cycle, so findings from climate review feed directly into product development, sourcing choices, and five-year financial planning. - We review the portfolio twice a year, comparing delivery against milestones and refreshing the list of opportunities when market conditions, regulation, or weather patterns shift. - Opportunity ideas come from supplier workshops, customer research, site-level efficiency studies, and external trend scanning; we score them by revenue potential, supply-chain resilience, ease of execution, and alignment with our transition plan. - Before approving larger initiatives, we model three climate pathways and compare outcomes for demand, input costs, and logistics; in the current cycle, 8 of 12 opportunities were taken forward, or 67%, with the remainder deferred for later review.
This example illustrates a different sectoral context while still covering the same five points: connection to strategy, ongoing oversight, how opportunities are sourced, how they are ranked, and how scenarios support choices.
How companies report s2-25-b
Real reports where this topic is disclosed. These are report practice, not exact disclosure templates to copy.
Enel Chile S.A.
Electric Utilities / IPP / Energy Traders · Chile · 2025
Enel Chile S.A.'s 2025 Integrated Annual Report provides some context on climate-related risks and opportunities, noting that the energy transition and climate change affect the Group’s activities (p.174) and that the Board addressed climate issues during the year (p.168). The report references processes for identifying and evaluating climate-related opportunities and scenario analysis for risk identification (pp.124, 170, 373), but these disclosures lack clarity and detailed description. Notably, there is no clear information on prioritisation criteria, and the links to strategic planning and monitoring and review processes are mentioned only in a general or unclear manner (pp.174-175).
SITC International Holdings Company Limited
Water Transportation · Hong Kong · 2025
SITC International Holdings Company Limited’s 2025 Environmental, Social and Governance Report includes evidence of monitoring and review processes for climate-related risks and opportunities, integrated into the overall risk management process (p.179). The report also addresses the use of climate-related scenario analysis to inform the identification of opportunities (p.196). However, there is no quotable evidence found regarding the link to strategic planning, opportunity identification process, or prioritisation criteria.
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Scenarios to work through
A manufacturer has a climate-opportunity register, but the finance team says it is only a sustainability file and never feeds into the three-year plan. The operations director wants to keep it separate because the business plan is already signed off.
QShould the write-up show a clear connection between the opportunity process and the organisation’s planning work, or can it be presented as a standalone exercise?
Reveal model answer →Hide answer ↑It should show how the opportunity work informs planning decisions, not sit apart as a side list. A reader should be able to see where the findings influence targets, investment choices, or other planning steps, even if the process is run by a separate team.
Why this matters · Explain how climate-opportunity work feeds into business planning, rather than describing it as an isolated activity.
A retailer reviews its opportunity pipeline once a year for the annual report, but the commercial team also updates it after major market shifts and new policy signals. The draft disclosure only mentions the year-end review.
QWhat level of detail is needed about how the organisation checks and updates its opportunity process?
Reveal model answer →Hide answer ↑The disclosure should reflect the real pattern of checking and updating, including any regular reviews and any extra reassessments when circumstances change. If the process is refreshed more than once a year, the description should not imply a single annual look-back only.
Why this matters · Describe the actual review rhythm and any trigger points for re-checking the process.
An energy company has a spreadsheet of possible climate-related upside cases, but the team cannot explain how items first enter the list or who decides whether a new idea is worth tracking. The draft text says only that opportunities are ‘considered as they arise’.
QWhat should the preparer clarify about the way opportunities are found and screened?
Reveal model answer →Hide answer ↑The disclosure should set out the practical route from idea to tracked opportunity: how potential upside is spotted, who assesses it, and what steps move it into the pipeline. A vague statement that opportunities are noticed informally is not enough if the organisation has a more defined method.
Why this matters · Show the route from spotting a possible upside to deciding whether it enters the formal process.
A food producer ranks climate opportunities using expected margin uplift, implementation effort, and fit with existing capital plans. The sustainability team also ran a scenario exercise, but the draft disclosure does not say how those scenarios affected the ranking.
QHow should the organisation explain the way it decides which opportunities matter most, and where scenario analysis fits in?
Reveal model answer →Hide answer ↑It should explain the factors used to sort and compare opportunities, and it should show how scenario work informs that judgement if it is part of the method. The reader needs to understand the basis for prioritisation, not just see a list of selected opportunities.
Why this matters · State the criteria used to rank opportunities and make clear how scenario analysis supports that ranking.
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 use the s2-25-b page to draft the disclosure from scratch?+−
Start with the plain-language explainer and the step-by-step preparation section, then use the datapoints, example disclosures and draft-output prompts to turn your notes into a first draft. The page is designed as practitioner guidance, so it helps you move from scoping to wording without treating it as an official source.
What data do I need to collect for s2-25-b before I start writing?+−
The page points you to five datapoints to prepare: strategy linkage, tracking and review, opportunity spotting process, ranking rules and scenario analysis use. Use those as your collection checklist so you can gather the right inputs before drafting.
How should I set the scope and methodology for s2-25-b in practice?+−
Use the page’s step-by-step preparation section together with the datapoints list to decide what sits in scope and how each item will be described. The page is meant to help you define a consistent approach before you write the disclosure.
Who should own the s2-25-b inputs in my organisation?+−
The page is useful for assigning ownership because it breaks the disclosure into specific datapoints and an evidence pack. In practice, that lets a sustainability, HR or data owner see which parts they need to provide and which parts need review.
What should go into the evidence pack for s2-25-b if I want to be assurance-ready?+−
The page includes an evidence pack with five items and also lists six assurance claims to verify. Use both together so your pack supports the claim, the risk being addressed and the evidence you can show to a reviewer.
What are the common mistakes to avoid when preparing s2-25-b?+−
The page has a section on common reporting gaps and mistakes, which is there to help you spot weak drafting, missing data or unclear methodology before sign-off. It is best used as a pre-submission check rather than a compliance checklist.
How do I use the workbook download for s2-25-b?+−
The Download Centre includes a Prep & Assurance workbook in .xlsx format, which is intended to help you organise preparation and assurance work. Use it alongside the page content to capture inputs, evidence and draft wording in one place.
What is the printable Library Card PDF for s2-25-b used for?+−
The Download Centre also provides a printable Library Card in PDF format, which is a handy reference version of the page. It is useful when you want a quick view of the disclosure guidance without working in the workbook.
Can I use the synthetic example disclosure on s2-25-b as a template for my own draft?+−
Yes, but only as a synthetic illustration. The page’s example disclosures are there to show how the narrative and any quantitative table can be structured, so you should adapt them to your own data and keep the numbers internally consistent.
How do I turn the s2-25-b page content into a draft narrative and content-index line?+−
Use the draft-output section, which gives visualisation ideas, narrative starters and a content-index line. That section is designed to help you convert the prepared datapoints into a readable draft and a simple index entry.
Is the ESRS E1 correspondence on the s2-25-b page reusable for my reporting pack?+−
The page says the closest ESRS correspondence is ESRS E1 (Climate Change), so that reference can help you orient your work. Treat it as a cross-framework pointer and reuse data where appropriate, but do not assume the requirements are identical.
More questions this page can help with
s2-25-b disclosure checklist for sustainability managers2-25-b evidence pack items for assurance reviews2-25-b workbook download how to uses2-25-b common reporting gaps and mistakess2-25-b strategy linkage tracking and review opportunity spotting processs2-25-b ranking rules scenario analysis use data collections2-25-b draft narrative starters and content index lines2-25-b synthetic example disclosure tables2-25-b ownership of disclosure inputss2-25-b assurance claims to verifys2-25-b plain language explainers2-25-b ESRS E1 climate change reusable data
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