IFRS S2 climate disclosure standard
International climate disclosure standard issued by the ISSB in 2023, designed to become the comparable global baseline building on TCFD.
ISSB, June 2023: the International Sustainability Standards Board, set up under the IFRS Foundation to bring order to a fragmented set of sustainability reporting frameworks, issues IFRS S2, its climate-related disclosure standard. It takes TCFD's four pillars (governance, strategy, risk management, metrics and targets), makes them more prescriptive, and ties them into the IFRS accounting standards that most listed insurers outside the United States already report under. The stated aim is a comparable global baseline, adopted jurisdiction by jurisdiction, replacing the stack of national and regional frameworks an international group currently has to reconcile. For a multinational carrier the math has two columns. Eventually, one set of climate metrics instead of several local regimes. Right now, a transition cost: data collection systems have to be reworked, while the EU's CSRD keeps running in parallel with its own requirements.
Several jurisdictions, including the United Kingdom, Australia, Japan and a number of emerging markets, began adopting IFRS S2 as their national climate reporting baseline in 2023 and 2024, progressively replacing their own TCFD-based requirements.
IFRS S2, ISSB climate standard, International Sustainability Standards Board
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