IFRS S2: Definition

The primary aim of IFRS S2 Climate-related Disclosures is to compel an organisation to provide information concerning its climate-related risks and opportunities. This information should prove valuable to the primary users of general-purpose financial reports when deciding how to allocate resources to the entity.IFRS S2 focuses specifically on climate-related physical and transition risks, along with climate-related opportunities. The disclosure requirement pertains only to those climate risks and opportunities that have a direct impact on the entity’s future outlook.The Core Content of IFRS S2 closely aligns with the four key topics found in IFRS S1. However, it necessitates additional depth and detail to adhere to the Standard’s reporting requirements.Countries such as Australia have developed their Mandatory Climate Reporting legislation through IFRS guidance and companies have to disclose in line with AASB S2 and ASSB S1 .