IFRS S2 climate disclosure standard

IFRS S2 is an international climate-related disclosure standard, issued in 2023 by the International Sustainability Standards Board, the body created under the IFRS Foundation to unify the previously fragmented landscape of sustainability reporting frameworks. Built directly on TCFD's four-pillar architecture, it retains that structure while making it more prescriptive and aligning it with the IFRS accounting standards already used by most large companies worldwide, including most listed insurers outside the United States. The stated ambition is to become a comparable global baseline, adopted jurisdiction by jurisdiction, reducing the current multiplicity of national or regional frameworks that international groups must otherwise reconcile. For a multinational insurer, the progressive adoption of IFRS S2 across the countries where it operates represents both an eventual simplification, one set of climate metrics rather than several local frameworks, and an immediate transition cost, adjusting data collection systems to a new standard while other regional frameworks, such as the European CSRD, remain in parallel with their 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, norme ISSB climat, International Sustainability Standards Board