ISSB-2023-A – Issued IFRS Standards

Climate-related Disclosures

June 2023

IFRS S2

IFRS

Sustainability Disclosure Standard

International Sustainability Standards Board

IFRS S2

Climate-related Disclosures

IFRS S2 Climate-related Disclosures together with its accompanying documents is issued by

the International Sustainability Standards Board (ISSB).

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CONTENTS

from paragraph

IFRS SUSTAINABILITY DISCLOSURE STANDARD

S2 CLIMATE-RELATED DISCLOSURES

OBJECTIVE 1

SCOPE 3

CORE CONTENT 5

Governance 5

Strategy 8

Risk management 24

Metrics and targets 27

APPENDICES

A Dened terms

B Application guidance

C Effective date and transition

APPROVAL BY THE ISSB OF IFRS S2 ISSUED IN JUNE 2023

FOR THE ACCOMPANYING GUIDANCE LISTED BELOW, SEE PART B OF THIS EDITION

ILLUSTRATIVE GUIDANCE

ILLUSTRATIVE EXAMPLES

INDUSTRY-BASED GUIDANCE ON IMPLEMENTING IFRS S2

FOR THE BASIS FOR CONCLUSIONS, SEE PART C OF THIS EDITION

BASIS FOR CONCLUSIONS

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

IFRS S2 Climate-related Disclosures is set out in paragraphs 1–37 and Appendices A–C.

All paragraphs have equal authority. Paragraphs in bold type state the main principles.

Terms dened in Appendix A are in italics the rst time they appear in the Standard.

Denitions of other terms are given in other IFRS Sustainability Disclosure Standards. The

Standard should be read in the context of its objective, the Basis for Conclusions and

IFRS S1 General Requirements for Disclosure of Sustainability-related Financial

Information.

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

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IFRS S2 Climate-related Disclosures

Objective

The objective of IFRS S2 Climate-related Disclosures is to require an entity to

disclose information about its climate-related risks and opportunities that is

useful to primary users of general purpose ﬁnancial reports in making

decisions relating to providing resources to the entity.

This Standard requires an entity to disclose information about climate-related

risks and opportunities that could reasonably be expected to affect the entity’s

cash flows, its access to finance or cost of capital over the short, medium or

long term. For the purposes of this Standard, these risks and opportunities are

collectively referred to as ‘climate-related risks and opportunities that could

reasonably be expected to affect the entity’s prospects’.

Scope

This Standard applies to:

(a)

climate-related risks to which the entity is exposed, which are:

(i)

climate-related physical risks; and

(ii) climate-related transition risks; and

(b) climate-related opportunities available to the entity.

Climate-related risks and opportunities that could not reasonably be

expected to affect an entity’s prospects are outside the scope of this

Standard.

Core content

Governance

The objective of climate-related ﬁnancial disclosures on governance is to

enable users of general purpose ﬁnancial reports to understand the

governance processes, controls and procedures an entity uses to monitor,

manage and oversee climate-related risks and opportunities.

To achieve this objective, an entity shall disclose information about:

(a) the governance body(s) (which can include a board, committee or

equivalent body charged with governance) or individual(s) responsible

for oversight of climate-related risks and opportunities. Specifically,

the entity shall identify that body(s) or individual(s) and disclose

information about:

1 Throughout this Standard, the terms ‘primary users’ and ‘users’ are used interchangeably, with

the same meaning.

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

(i) how responsibilities for climate-related risks and opportunities

are reflected in the terms of reference, mandates, role

descriptions and other related policies applicable to that body(s)

or individual(s);

(ii) how the body(s) or individual(s) determines whether

appropriate skills and competencies are available or will be

developed to oversee strategies designed to respond to climate-

related risks and opportunities;

(iii) how and how often the body(s) or individual(s) is informed

about climate-related risks and opportunities;

(iv)

how the body(s) or individual(s) takes into account climate-

related risks and opportunities when overseeing the entity’s

strategy, its decisions on major transactions and its risk

management processes and related policies, including whether

the body(s) or individual(s) has considered trade-offs associated

with those risks and opportunities; and

(v)

how the body(s) or individual(s) oversees the setting of targets

related to climate-related risks and opportunities, and monitors

progress towards those targets (see paragraphs 33–36),

including whether and how related performance metrics are

included in remuneration policies (see paragraph 29(g)).

(b) management’s role in the governance processes, controls and

procedures used to monitor, manage and oversee climate-related risks

and opportunities, including information about:

(i) whether the role is delegated to a specific management-level

position or management-level committee and how oversight is

exercised over that position or committee; and

(ii) whether management uses controls and procedures to support

the oversight of climate-related risks and opportunities and, if

so, how these controls and procedures are integrated with

other internal functions.

In preparing disclosures to fulfil the requirements in paragraph 6, an entity

shall avoid unnecessary duplication in accordance with IFRS S1 General

Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1)

(see paragraph B42(b) of IFRS S1). For example, although an entity shall

provide the information required by paragraph 6, if oversight of sustainability-

related risks and opportunities is managed on an integrated basis, the entity

would avoid duplication by providing integrated governance disclosures

instead of separate disclosures for each sustainability-related risk and

opportunity.

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

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Strategy

The objective of climate-related ﬁnancial disclosures on strategy is to

enable users of general purpose ﬁnancial reports to understand an entity’s

strategy for managing climate-related risks and opportunities.

Specifically, an entity shall disclose information to enable users of general

purpose financial reports to understand:

(a) the climate-related risks and opportunities that could reasonably be

expected to affect the entity’s prospects (see paragraphs 10–12);

(b) the current and anticipated effects of those climate-related risks and

opportunities on the entity’s business model and value chain (see

paragraph 13);

(c)

the effects of those climate-related risks and opportunities on the

entity’s strategy and decision-making, including information about its

climate-related transition plan (see paragraph 14);

(d)

the effects of those climate-related risks and opportunities on the

entity’s financial position, financial performance and cash flows for

the reporting period, and their anticipated effects on the entity’s

financial position, financial performance and cash flows over the

short, medium and long term, taking into consideration how those

climate-related risks and opportunities have been factored into the

entity’s financial planning (see paragraphs 15–21); and

(e) the climate resilience of the entity’s strategy and its business model to

climate-related changes, developments and uncertainties, taking into

consideration the entity’s identified climate-related risks and

opportunities (see paragraph 22).

Climate-related risks and opportunities

An entity shall disclose information that enables users of general purpose

financial reports to understand the climate-related risks and opportunities

that could reasonably be expected to affect the entity’s prospects. Specifically,

the entity shall:

(a) describe climate-related risks and opportunities that could reasonably

be expected to affect the entity’s prospects;

(b) explain, for each climate-related risk the entity has identified, whether

the entity considers the risk to be a climate-related physical risk or

climate-related transition risk;

identified, over which time horizons—short, medium or long term—

the effects of each climate-related risk and opportunity could

reasonably be expected to occur; and

(d) explain how the entity defines ‘short term’, ‘medium term’ and ‘long

term’ and how these definitions are linked to the planning horizons

used by the entity for strategic decision-making.

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

In identifying the climate-related risks and opportunities that could

reasonably be expected to affect an entity’s prospects, the entity shall use all

reasonable and supportable information that is available to the entity at the

reporting date without undue cost or effort, including information about past

events, current conditions and forecasts of future conditions.

In identifying the climate-related risks and opportunities that could

reasonably be expected to affect an entity’s prospects, the entity shall refer to

and consider the applicability of the industry-based disclosure topics defined in

the Industry-based Guidance on Implementing IFRS S2.

Business model and value chain

An entity shall disclose information that enables users of general purpose

financial reports to understand the current and anticipated effects of climate-

related risks and opportunities on the entity’s business model and value chain.

Specifically, the entity shall disclose:

(a)

a description of the current and anticipated effects of climate-related

risks and opportunities on the entity’s business model and value chain;

and

(b) a description of where in the entity’s business model and value chain

climate-related risks and opportunities are concentrated (for example,

geographical areas, facilities and types of assets).

Strategy and decision-making

An entity shall disclose information that enables users of general purpose

financial reports to understand the effects of climate-related risks and

opportunities on its strategy and decision-making. Specifically, the entity shall

disclose:

(a) information about how the entity has responded to, and plans to

respond to, climate-related risks and opportunities in its strategy and

decision-making, including how the entity plans to achieve any

climate-related targets it has set and any targets it is required to meet

by law or regulation. Specifically, the entity shall disclose information

about:

(i) current and anticipated changes to the entity’s business model,

including its resource allocation, to address climate-related

risks and opportunities (for example, these changes could

include plans to manage or decommission carbon-, energy- or

water-intensive operations; resource allocations resulting from

demand or supply-chain changes; resource allocations arising

from business development through capital expenditure or

additional expenditure on research and development; and

acquisitions or divestments);

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(ii) current and anticipated direct mitigation and adaptation efforts

(for example, through changes in production processes or

equipment, relocation of facilities, workforce adjustments, and

changes in product specifications);

(iii) current and anticipated indirect mitigation and adaptation

efforts (for example, through working with customers and

supply chains);

(iv) any climate-related transition plan the entity has, including

information about key assumptions used in developing its

transition plan, and dependencies on which the entity’s

transition plan relies; and

(v)

how the entity plans to achieve any climate-related targets,

including any greenhouse gas emissions targets, described in

accordance with paragraphs 33–36.

(b)

information about how the entity is resourcing, and plans to resource,

the activities disclosed in accordance with paragraph 14(a).

(c)

quantitative and qualitative information about the progress of plans

disclosed in previous reporting periods in accordance with

paragraph 14(a).

Financial position, nancial performance and cash ows

An entity shall disclose information that enables users of general purpose

financial reports to understand:

(a) the effects of climate-related risks and opportunities on the entity’s

financial position, financial performance and cash flows for the

reporting period (current financial effects); and

(b) the anticipated effects of climate-related risks and opportunities on the

entity’s financial position, financial performance and cash flows over

the short, medium and long term, taking into consideration how

climate-related risks and opportunities are included in the entity’s

financial planning (anticipated financial effects).

Specifically, an entity shall disclose quantitative and qualitative information

about:

(a) how climate-related risks and opportunities have affected its financial

position, financial performance and cash flows for the reporting

period;

(b) the climate-related risks and opportunities identified in

paragraph 16(a) for which there is a significant risk of a material

adjustment within the next annual reporting period to the carrying

amounts of assets and liabilities reported in the related financial

statements;

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

medium and long term, given its strategy to manage climate-related

risks and opportunities, taking into consideration:

(i) its investment and disposal plans (for example, plans for capital

expenditure, major acquisitions and divestments, joint

ventures, business transformation, innovation, new business

areas, and asset retirements), including plans the entity is not

contractually committed to; and

(ii) its planned sources of funding to implement its strategy; and

(d) how the entity expects its financial performance and cash flows to

change over the short, medium and long term, given its strategy to

manage climate-related risks and opportunities (for example, increased

revenue from products and services aligned with a lower-carbon

economy; costs arising from physical damage to assets from climate

events; and expenses associated with climate adaptation or mitigation).

In providing quantitative information, an entity may disclose a single amount

or a range.

In preparing disclosures about the anticipated financial effects of a climate-

related risk or opportunity, an entity shall:

(a) use all reasonable and supportable information that is available to the

entity at the reporting date without undue cost or effort; and

(b) use an approach that is commensurate with the skills, capabilities and

resources that are available to the entity for preparing those

disclosures.

An entity need not provide quantitative information about the current or

anticipated financial effects of a climate-related risk or opportunity if the

entity determines that:

(a) those effects are not separately identifiable; or

(b) the level of measurement uncertainty involved in estimating those

effects is so high that the resulting quantitative information would not

be useful.

In addition, an entity need not provide quantitative information about the

anticipated financial effects of a climate-related risk or opportunity if the

entity does not have the skills, capabilities or resources to provide that

quantitative information.

If an entity determines that it need not provide quantitative information

about the current or anticipated financial effects of a climate-related risk or

opportunity applying the criteria set out in paragraphs 19–20, the entity shall:

(a)

explain why it has not provided quantitative information;

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

10 © IFRS Foundation

(b) provide qualitative information about those financial effects, including

identifying line items, totals and subtotals within the related financial

statements that are likely to be affected, or have been affected, by that

climate-related risk or opportunity; and

of that climate-related risk or opportunity with other climate-related

risks or opportunities and other factors unless the entity determines

that quantitative information about the combined financial effects

would not be useful.

Climate resilience

An entity shall disclose information that enables users of general purpose

financial reports to understand the resilience of the entity’s strategy and

business model to climate-related changes, developments and uncertainties,

taking into consideration the entity’s identified climate-related risks and

opportunities. The entity shall use climate-related scenario analysis to assess

its climate resilience using an approach that is commensurate with the

entity’s circumstances (see paragraphs B1–B18). In providing quantitative

information, the entity may disclose a single amount or a range. Specifically,

the entity shall disclose:

(a) the entity’s assessment of its climate resilience as at the reporting date,

which shall enable users of general purpose financial reports to

understand:

(i) the implications, if any, of the entity’s assessment for its

strategy and business model, including how the entity would

need to respond to the effects identified in the climate-related

scenario analysis;

(ii) the significant areas of uncertainty considered in the entity’s

assessment of its climate resilience;

(iii) the entity’s capacity to adjust or adapt its strategy and business

model to climate change over the short, medium and long

term, including;

(1) the availability of, and flexibility in, the entity’s existing

financial resources to respond to the effects identified in

the climate-related scenario analysis, including to

address climate-related risks and to take advantage of

climate-related opportunities;

(2) the entity’s ability to redeploy, repurpose, upgrade or

decommission existing assets; and

(3) the effect of the entity’s current and planned

investments in climate-related mitigation, adaptation

and opportunities for climate resilience; and

(b)

how and when the climate-related scenario analysis was carried out,

including:

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

(i) information about the inputs the entity used, including:

(1) which climate-related scenarios the entity used for the

analysis and the sources of those scenarios;

(2) whether the analysis included a diverse range of

climate-related scenarios;

(3) whether the climate-related scenarios used for the

analysis are associated with climate-related transition

risks or climate-related physical risks;

(4) whether the entity used, among its scenarios, a climate-

related scenario aligned with the latest international

agreement on climate change;

(5)

why the entity decided that its chosen climate-related

scenarios are relevant to assessing its resilience to

climate-related changes, developments or uncertainties;

(6)

the time horizons the entity used in the analysis; and

(7)

what scope of operations the entity used in the analysis

(for example, the operating locations and business units

used in the analysis);

(ii) the key assumptions the entity made in the analysis, including

assumptions about:

(1) climate-related policies in the jurisdictions in which the

entity operates;

(2) macroeconomic trends;

(3) national- or regional-level variables (for example, local

weather patterns, demographics, land use,

infrastructure and availability of natural resources);

(4) energy usage and mix; and

(5) developments in technology; and

(iii) the reporting period in which the climate-related scenario

analysis was carried out (see paragraph B18).

In preparing disclosures to meet the requirements in paragraphs 13–22, an

entity shall refer to and consider the applicability of cross-industry metric

categories, as described in paragraph 29, and industry-based metrics

associated with disclosure topics defined in the Industry-based Guidance on

Implementing IFRS S2 as described in paragraph 32.

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Risk management

The objective of climate-related ﬁnancial disclosures on risk management

is to enable users of general purpose ﬁnancial reports to understand an

entity’s processes to identify, assess, prioritise and monitor climate-related

risks and opportunities, including whether and how those processes are

integrated into and inform the entity’s overall risk management process.

To achieve this objective, an entity shall disclose information about:

(a) the processes and related policies the entity uses to identify, assess,

prioritise and monitor climate-related risks, including information

about:

(i)

the inputs and parameters the entity uses (for example,

information about data sources and the scope of operations

covered in the processes);

(ii)

whether and how the entity uses climate-related scenario

analysis to inform its identification of climate-related risks;

(iii)

how the entity assesses the nature, likelihood and magnitude of

the effects of those risks (for example, whether the entity

considers qualitative factors, quantitative thresholds or other

criteria);

(iv) whether and how the entity prioritises climate-related risks

relative to other types of risk;

(v) how the entity monitors climate-related risks; and

(vi) whether and how the entity has changed the processes it uses

compared with the previous reporting period;

(b) the processes the entity uses to identify, assess, prioritise and monitor

climate-related opportunities, including information about whether

and how the entity uses climate-related scenario analysis to inform its

identification of climate-related opportunities; and

prioritising and monitoring climate-related risks and opportunities are

integrated into and inform the entity’s overall risk management

process.

In preparing disclosures to fulfil the requirements in paragraph 25, an entity

shall avoid unnecessary duplication in accordance with IFRS S1 (see

paragraph B42(b) of IFRS S1). For example, although an entity shall provide

the information required by paragraph 25, if oversight of sustainability-

related risks and opportunities is managed on an integrated basis, the entity

would avoid duplication by providing integrated risk management disclosures

instead of separate disclosures for each sustainability-related risk and

opportunity.

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

Metrics and targets

The objective of climate-related ﬁnancial disclosures on metrics and targets

is to enable users of general purpose ﬁnancial reports to understand an

entity’s performance in relation to its climate-related risks and

opportunities, including progress towards any climate-related targets it has

set, and any targets it is required to meet by law or regulation.

To achieve this objective, an entity shall disclose:

(a) information relevant to the cross-industry metric categories (see

paragraphs 29–31);

(b)

industry-based metrics that are associated with particular business

models, activities or other common features that characterise

participation in an industry (see paragraph 32); and

(c)

targets set by the entity, and any targets it is required to meet by law

or regulation, to mitigate or adapt to climate-related risks or take

advantage of climate-related opportunities, including metrics used by

the governance body or management to measure progress towards

these targets (see paragraphs 33–37).

Climate-related metrics

An entity shall disclose information relevant to the cross-industry metric

categories of:

(a) greenhouse gases—the entity shall:

(i) disclose its absolute gross greenhouse gas emissions generated

during the reporting period, expressed as metric tonnes of CO

equivalent (see paragraphs B19–B22), classified as:

(1) Scope 1 greenhouse gas emissions;

(2) Scope 2 greenhouse gas emissions; and

(3) Scope 3 greenhouse gas emissions;

(ii) measure its greenhouse gas emissions in accordance with the

Greenhouse Gas Protocol: A Corporate Accounting and

Reporting Standard (2004) unless required by a jurisdictional

authority or an exchange on which the entity is listed to use a

different method for measuring its greenhouse gas emissions

(see paragraphs B23–B25);

(iii) disclose the approach it uses to measure its greenhouse gas

emissions (see paragraphs B26–B29) including:

(1)

the measurement approach, inputs and assumptions the

entity uses to measure its greenhouse gas emissions;

(2)

the reason why the entity has chosen the measurement

approach, inputs and assumptions it uses to measure its

greenhouse gas emissions; and

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(3) any changes the entity made to the measurement

approach, inputs and assumptions during the reporting

period and the reasons for those changes;

(iv) for Scope 1 and Scope 2 greenhouse gas emissions disclosed in

accordance with paragraph 29(a)(i)(1)–(2), disaggregate

emissions between:

(1) the consolidated accounting group (for example, for an

entity applying IFRS Accounting Standards, this group

would comprise the parent and its consolidated

subsidiaries); and

(2)

other investees excluded from paragraph 29(a)(iv)(1) (for

example, for an entity applying IFRS Accounting

Standards, these investees would include associates,

joint ventures and unconsolidated subsidiaries);

(v)

for Scope 2 greenhouse gas emissions disclosed in accordance

with paragraph 29(a)(i)(2), disclose its location-based Scope 2

greenhouse gas emissions, and provide information about any

contractual instruments that is necessary to inform users’

understanding of the entity’s Scope 2 greenhouse gas emissions

(see paragraphs B30–B31); and

(vi) for Scope 3 greenhouse gas emissions disclosed in accordance

with paragraph 29(a)(i)(3), and with reference to paragraphs

B32–B57, disclose:

(1) the categories included within the entity’s measure of

Scope 3 greenhouse gas emissions, in accordance with

the Scope 3 categories described in the Greenhouse Gas

Protocol Corporate Value Chain (Scope 3) Accounting

and Reporting Standard (2011); and

(2) additional information about the entity’s Category 15

greenhouse gas emissions or those associated with its

investments (ﬁnanced emissions), if the entity’s activities

include asset management, commercial banking or

insurance (see paragraphs B58–B63);

(b) climate-related transition risks—the amount and percentage of assets

or business activities vulnerable to climate-related transition risks;

business activities vulnerable to climate-related physical risks;

(d) climate-related opportunities—the amount and percentage of assets or

business activities aligned with climate-related opportunities;

(e) capital deployment—the amount of capital expenditure, financing or

investment deployed towards climate-related risks and opportunities;

(f) internal carbon prices—the entity shall disclose:

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

(i) an explanation of whether and how the entity is applying a

carbon price in decision-making (for example, investment

decisions, transfer pricing and scenario analysis); and

(ii) the price for each metric tonne of greenhouse gas emissions the

entity uses to assess the costs of its greenhouse gas emissions;

(g) remuneration—the entity shall disclose:

(i) a description of whether and how climate-related

considerations are factored into executive remuneration (see

also paragraph 6(a)(v)); and

(ii)

the percentage of executive management remuneration

recognised in the current period that is linked to climate-

related considerations.

In preparing disclosures to meet the requirements in paragraph 29(b)–(d), an

entity shall use all reasonable and supportable information that is available to

the entity at the reporting date without undue cost or effort.

In preparing disclosures to meet the requirements in paragraph 29(b)–(g), an

entity shall refer to paragraphs B64–B65.

An entity shall disclose industry-based metrics that are associated with one or

more particular business models, activities or other common features that

characterise participation in an industry. In determining the industry-based

metrics that the entity discloses, the entity shall refer to and consider the

applicability of the industry-based metrics associated with disclosure topics

described in the Industry-based Guidance on Implementing IFRS S2.

Climate-related targets

An entity shall disclose the quantitative and qualitative climate-related targets

it has set to monitor progress towards achieving its strategic goals, and any

targets it is required to meet by law or regulation, including any greenhouse

gas emissions targets. For each target, the entity shall disclose:

(a) the metric used to set the target (see paragraphs B66–B67);

(b) the objective of the target (for example, mitigation, adaptation or

conformance with science-based initiatives);

the target applies to the entity in its entirety or only a part of the

entity, such as a specific business unit or specific geographical region);

(d) the period over which the target applies;

(e) the base period from which progress is measured;

(f)

any milestones and interim targets;

(g)

if the target is quantitative, whether it is an absolute target or an

intensity target; and

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(h) how the latest international agreement on climate change, including

jurisdictional commitments that arise from that agreement, has

informed the target.

An entity shall disclose information about its approach to setting and

reviewing each target, and how it monitors progress against each target,

including:

(a) whether the target and the methodology for setting the target has

been validated by a third party;

(b) the entity’s processes for reviewing the target;

(c)

the metrics used to monitor progress towards reaching the target; and

(d)

any revisions to the target and an explanation for those revisions.

An entity shall disclose information about its performance against each

climate-related target and an analysis of trends or changes in the entity’s

performance.

For each greenhouse gas emissions target disclosed in accordance with

paragraphs 33–35, an entity shall disclose:

(a)

which greenhouse gases are covered by the target.

(b) whether Scope 1, Scope 2 or Scope 3 greenhouse gas emissions are

covered by the target.

greenhouse gas emissions target. If the entity discloses a net

greenhouse gas emissions target, the entity is also required to

separately disclose its associated gross greenhouse gas emissions target

(see paragraphs B68–B69).

(d) whether the target was derived using a sectoral decarbonisation

approach.

(e) the entity’s planned use of carbon credits to offset greenhouse gas

emissions to achieve any net greenhouse gas emissions target. In

explaining its planned use of carbon credits the entity shall disclose

information including, and with reference to paragraphs B70–B71:

(i) the extent to which, and how, achieving any net greenhouse

gas emissions target relies on the use of carbon credits;

(ii) which third-party scheme(s) will verify or certify the carbon

credits;

(iii) the type of carbon credit, including whether the underlying

offset will be nature-based or based on technological carbon

removals, and whether the underlying offset is achieved

through carbon reduction or removal; and

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

(iv) any other factors necessary for users of general purpose

financial reports to understand the credibility and integrity of

the carbon credits the entity plans to use (for example,

assumptions regarding the permanence of the carbon offset).

In identifying and disclosing the metrics used to set and monitor progress

towards reaching a target described in paragraphs 33–34, an entity shall refer

to and consider the applicability of cross-industry metrics (see paragraph 29)

and industry-based metrics (see paragraph 32), including those described in an

applicable IFRS Sustainability Disclosure Standard, or metrics that otherwise

satisfy the requirements in IFRS S1.

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Appendix A

Dened terms

This appendix is an integral part of IFRS S2 and has the same authority as the other parts of the

Standard.

carbon credit

An emissions unit that is issued by a carbon crediting

programme and represents an emission reduction or removal of

greenhouse gases. Carbon credits are uniquely serialised,

issued, tracked and cancelled by means of an electronic

registry.

climate resilience

The capacity of an entity to adjust to climate-related changes,

developments or uncertainties. Climate resilience involves the

capacity to manage climate-related risks and benefit from

climate-related opportunities, including the ability to respond

and adapt to climate-related transition risks and climate-

related physical risks. An entity’s climate resilience includes

both its strategic resilience and its operational resilience to

climate-related changes, developments and uncertainties.

climate-related

physical risks

Risks resulting from climate change that can be event-driven

(acute physical risk) or from longer-term shifts in climatic

patterns (chronic physical risk). Acute physical risks arise from

weather-related events such as storms, floods, drought or

heatwaves, which are increasing in severity and frequency.

Chronic physical risks arise from longer-term shifts in climatic

patterns including changes in precipitation and temperature

which could lead to sea level rise, reduced water availability,

biodiversity loss and changes in soil productivity.

These risks could carry financial implications for an entity,

such as costs resulting from direct damage to assets or indirect

effects of supply-chain disruption. The entity's financial

performance could also be affected by changes in water

availability, sourcing and quality; and extreme temperature

changes affecting the entity's premises, operations, supply

chains, transportation needs and employee health and safety.

climate-related risks

and opportunities

Climate-related risks refers to the potential negative effects of

climate change on an entity. These risks are categorised as

climate-related physical risks and climate-related transition

risks.

Climate-related opportunities refers to the potential positive

effects arising from climate change for an entity. Efforts to

mitigate and adapt to climate change can produce climate-

related opportunities for an entity.

climate-related

transition plan

An aspect of an entity’s overall strategy that lays out the

entity’s targets, actions or resources for its transition towards a

lower-carbon economy, including actions such as reducing its

greenhouse gas emissions.

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

climate-related

transition risks

Risks that arise from efforts to transition to a lower-carbon

economy. Transition risks include policy, legal, technological,

market and reputational risks. These risks could carry financial

implications for an entity, such as increased operating costs or

asset impairment due to new or amended climate-related

regulations. The entity's financial performance could also be

affected by shifting consumer demands and the development

and deployment of new technology.

equivalent

The universal unit of measurement to indicate the global

warming potential of each greenhouse gas, expressed in terms

of the global warming potential of one unit of carbon dioxide.

This unit is used to evaluate releasing (or avoiding releasing)

different greenhouse gases against a common basis.

ﬁnanced emissions

The portion of gross greenhouse gas emissions of an investee or

counterparty attributed to the loans and investments made by

an entity to the investee or counterparty. These emissions are

part of Scope 3 Category 15 (investments) as defined in the

Greenhouse Gas Protocol Corporate Value Chain (Scope 3)

Accounting and Reporting Standard (2011).

global warming

potential

A factor describing the radiative forcing impact (degree of harm

to the atmosphere) of one unit of a given greenhouse gas

relative to one unit of CO

greenhouse gases

The seven greenhouse gases listed in the Kyoto Protocol—

carbon dioxide (CO

); methane (CH

); nitrous oxide (N

O);

hydrofluorocarbons (HFCs); nitrogen trifluoride (NF

);

perfluorocarbons (PFCs) and sulphur hexafluoride (SF

indirect greenhouse

gas emissions

Emissions that are a consequence of the activities of an entity,

but occur at sources owned or controlled by another entity.

internal carbon price

Price used by an entity to assess the financial implications of

changes to investment, production and consumption patterns,

and of potential technological progress and future emissions-

abatement costs. An entity can use internal carbon prices for a

range of business applications. Two types of internal carbon

prices that an entity commonly uses are:

(a) a shadow price, which is a theoretical cost or notional

amount that the entity does not charge but that can be

used to understand the economic implications or trade-

offs for such things as risk impacts, new investments,

the net present value of projects, and the cost and

benefit of various initiatives; and

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

20 © IFRS Foundation

(b) an internal tax or fee, which is a carbon price charged to

a business activity, product line, or other business unit

based on its greenhouse gas emissions (these internal

taxes or fees are similar to intracompany transfer

pricing).

latest international

agreement on climate

change

An agreement by states, as members of the United Nations

Framework Convention on Climate Change, to combat climate

change. The agreements set norms and targets for a reduction

in greenhouse gases.

Scope 1 greenhouse

gas emissions

Direct greenhouse gas emissions that occur from sources that

are owned or controlled by an entity.

Scope 2 greenhouse

gas emissions

Indirect greenhouse gas emissions from the generation of

purchased or acquired electricity, steam, heating or cooling

consumed by an entity.

Purchased and acquired electricity is electricity that is

purchased or otherwise brought into an entity’s boundary.

Scope 2 greenhouse gas emissions physically occur at the

facility where electricity is generated.

Scope 3 greenhouse

gas emissions

Indirect greenhouse gas emissions (not included in Scope 2

greenhouse gas emissions) that occur in the value chain of an

entity, including both upstream and downstream emissions.

Scope 3 greenhouse gas emissions include the Scope 3

categories in the Greenhouse Gas Protocol Corporate Value

Chain (Scope 3) Accounting and Reporting Standard (2011).

Scope 3 categories

Scope 3 greenhouse gas emissions are categorised into these

15 categories—as described in the Greenhouse Gas Protocol

Corporate Value Chain (Scope 3) Accounting and Reporting

Standard (2011):

(1) purchased goods and services;

(2) capital goods;

(3) fuel- and energy-related activities not included in Scope

1 greenhouse gas emissions or Scope 2 greenhouse gas

emissions;

(4)

upstream transportation and distribution;

(5)

waste generated in operations;

(6)

business travel;

(7)

employee commuting;

(8)

upstream leased assets;

(9)

downstream transportation and distribution;

(10)

processing of sold products;

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

(11) use of sold products;

(12) end-of-life treatment of sold products;

(13) downstream leased assets;

(14) franchises; and

(15) investments.

Terms dened in other Standards and used in this Standard with

the same meaning

business model

An entity’s system of transforming inputs through its activities

into outputs and outcomes that aims to fulfil the entity’s

strategic purposes and create value for the entity and hence

generate cash flows over the short, medium and long term.

disclosure topic

A specific sustainability-related risk or opportunity based on

the activities conducted by entities within a particular industry

as set out in an IFRS Sustainability Disclosure Standard or a

SASB Standard.

general purpose

ﬁnancial reports

Reports that provide financial information about a reporting

entity that is useful to primary users in making decisions

relating to providing resources to the entity. Those decisions

involve decisions about:

(a) buying, selling or holding equity and debt instruments;

(b) providing or selling loans and other forms of credit; or

entity’s management’s actions that affect the use of the

entity’s economic resources.

General purpose financial reports include—but are not

restricted to—an entity’s general purpose financial statements

and sustainability-related financial disclosures.

impracticable

Applying a requirement is impracticable when an entity cannot

apply it after making every reasonable effort to do so.

primary users of

general purpose

ﬁnancial reports

(primary users)

Existing and potential investors, lenders and other creditors.

value chain

The full range of interactions, resources and relationships

related to a reporting entity’s business model and the external

environment in which it operates.

A value chain encompasses the interactions, resources and

relationships an entity uses and depends on to create its

products or services from conception to delivery, consumption

and end-of-life, including interactions, resources and

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

22 © IFRS Foundation

relationships in the entity’s operations, such as human

resources; those along its supply, marketing and distribution

channels, such as materials and service sourcing, and product

and service sale and delivery; and the financing, geographical,

geopolitical and regulatory environments in which the entity

operates.

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

Appendix B

Application guidance

This appendix is an integral part of IFRS S2 and has the same authority as the other parts of the

Standard.

Climate resilience (paragraph 22)

Paragraph 22 requires an entity to use climate-related scenario analysis to

assess its climate resilience, using an approach that is commensurate with its

circumstances.

The entity is required to use an approach to climate-related

scenario analysis that enables it to consider all reasonable and supportable

information that is available to the entity at the reporting date without undue

cost or effort. Paragraphs B2–B18 provide guidance on how an entity uses

scenario analysis to assess the entity’s climate resilience. Specifically:

(a) paragraphs B2–B7 set out the factors the entity shall consider when

assessing its circumstances;

(b) paragraphs B8–B15 set out the factors the entity shall consider when

determining an appropriate approach to climate-related scenario

analysis; and

(c)

paragraphs B16–B18 set out additional factors for the entity to

consider when determining its approach to climate-related scenario

analysis over time.

Assessing the circumstances

An entity shall use an approach to climate-related scenario analysis that is

commensurate with its circumstances as at the time the entity carries out its

climate-related scenario analysis (see paragraph B3). To assess its

circumstances the entity shall consider:

(a) the entity’s exposure to climate-related risks and opportunities (see

paragraphs B4–B5); and

(b) the skills, capabilities and resources available to the entity for the

climate-related scenario analysis (see paragraphs B6–B7).

An entity shall assess its circumstances each time it carries out its climate-

related scenario analysis. For example, an entity that carries out its climate-

related scenario analysis every three years to align with its strategic planning

cycle (see paragraph B18) would be required to reconsider for this purpose its

exposure to climate-related risks and opportunities and the skills, capabilities

and resources available at that time.

2 This application guidance (paragraphs B1–B18) draws on the range of practice outlined in

documents published by the Task Force on Climate-related Financial Disclosures (TCFD),

including Technical Supplement: The Use of Scenario Analysis in Disclosure of Climate-related Risks and

Opportunities (2017) and Guidance on Scenario Analysis for Non-Financial Companies (2020).

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

24 © IFRS Foundation

Exposure to climate-related risks and opportunities

An entity shall consider its exposure to climate-related risks and opportunities

in its assessment of its circumstances and when determining the approach to

use for its climate-related scenario analysis. This consideration provides

essential context for understanding the potential benefits of using a particular

approach to climate-related scenario analysis. For example, if an entity has a

high degree of exposure to climate-related risk then a more quantitative or

technically sophisticated approach to climate-related scenario analysis would

be of greater benefit to the entity and users of general purpose financial

reports. Users of general purpose financial reports would be less likely to

benefit from quantitative or technically sophisticated climate-related scenario

analysis if the entity is exposed to few or relatively less severe climate-related

risks and opportunities. This means that—with all else being equal—the

greater the entity’s exposure to climate-related risks or opportunities, the

more likely it is the entity would determine that a more technically

sophisticated form of climate-related scenario analysis is required.

This Standard requires an entity to identify the climate-related risks and

opportunities to which it is exposed (see paragraph 10) and to disclose

information about the process the entity uses to identify, assess, prioritise and

monitor those risks and opportunities (see paragraph 25). The information the

entity discloses in accordance with paragraphs 10 and 25 can inform the

entity’s consideration of its exposure to climate-related risks and

opportunities.

Skills, capabilities and resources available

An entity shall consider the available skills, capabilities and resources when

determining an appropriate approach to use for its climate-related scenario

analysis. These skills, capabilities and resources might include both internal

and external skills, capabilities and resources. The entity’s available skills,

capabilities and resources provide context to inform its consideration of the

potential cost and level of effort required by a particular approach to climate-

related scenario analysis. For example, if an entity has only just begun to

explore the use of climate-related scenario analysis to assess its climate

resilience, it might be unable to use a quantitative or technically sophisticated

approach to climate-related scenario analysis without undue cost or effort. For

the avoidance of doubt, if resources are available to the entity then it will be

able to invest in obtaining or developing the necessary skills and capabilities.

Climate-related scenario analysis can be resource intensive and might—

through an iterative learning process—be developed and refined over multiple

planning cycles. As an entity repeats the climate-related scenario analysis, it is

likely to develop skills and capabilities that will enable the entity to

strengthen its approach to climate-related scenario analysis over time. For

example, if an entity has not yet used climate-related scenario analysis or

participates in an industry where climate-related scenario analysis is not

commonly used, the entity might need more time to develop its skills and

capabilities. In contrast, an entity in an industry where climate-related

scenario analysis is established practice—such as extractives and mineral

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

processing—would be expected to have strengthened its skills and capabilities

through its experience.

Determining the appropriate approach

An entity shall determine an approach to climate-related scenario analysis

that enables it to consider all reasonable and supportable information that is

available to the entity at the reporting date without undue cost or effort. The

determination of the approach shall be informed by the assessments of the

entity’s exposure to climate-related risks and opportunities (see paragraphs

B4–B5) and its available skills, capabilities and resources (see paragraphs

B6–B7). Making such a determination involves:

(a)

selecting inputs to the climate-related scenario analysis (see

paragraphs B11–B13); and

(b)

making analytical choices about how to carry out the climate-related

scenario analysis (see paragraphs B14–B15).

Reasonable and supportable information includes information about past

events, current conditions and forecasts of future conditions. It also includes

quantitative or qualitative information, and information that is obtained from

an external source or owned or developed internally.

An entity will need to use judgement to determine the mix of inputs and

analytical choices that will enable the entity to consider all reasonable and

supportable information that is available to the entity at the reporting date

without undue cost or effort. The degree of judgement that is required

depends on the availability of detailed information. As the time horizon

increases and the availability of detailed information decreases, the degree of

judgement required increases.

Selecting inputs

When an entity selects the inputs to use in its climate-related scenario

analysis, the entity shall consider all reasonable and supportable information

—including scenarios, variables and other inputs—available to the entity at

the reporting date without undue cost or effort. The inputs used in scenario

analysis might include information that is qualitative or quantitative, and is

obtained from an external source or developed internally. For example,

publicly available climate-related scenarios—from authoritative sources—that

describe future trends and a range of pathways to plausible outcomes are

considered to be available to the entity without undue cost or effort.

When selecting scenarios, variables and other inputs to use in climate-related

scenario analysis, an entity might, for example, use one or more climate-

related scenarios—including international and regional scenarios—that are

publicly and freely available from authoritative sources. The entity shall have

a reasonable and supportable basis for using a particular scenario or set of

scenarios. For example, an entity with operations concentrated in a

jurisdiction where emissions are regulated—or are likely to be regulated in

the future—might determine that it is appropriate to carry out its analysis

using a scenario consistent with an orderly transition to a lower-carbon

B10

B11

B12

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26 © IFRS Foundation

economy or consistent with relevant jurisdictional commitments to the latest

international agreement on climate change. Elsewhere, for example, an entity

with heightened exposure to physical climate-related risks might determine

that it is appropriate to carry out its analysis using a localised climate-related

scenario that takes into account current policies.

In considering whether the selected inputs are reasonable and supportable, an

entity shall consider the objective of paragraph 22, which requires the entity

to disclose information that enables users of general purpose financial reports

to understand the resilience of the entity’s strategy and business model to

climate-related changes, developments and uncertainties, taking into

consideration the entity’s identified climate-related risks and opportunities.

This means that the inputs to the entity’s climate-related scenario analysis

shall be relevant to the entity’s circumstances, for example, to the particular

activities the entity undertakes and the geographical location of those

activities.

Making analytical choices

An entity’s resilience assessment will be informed not only by the individual

inputs to its climate-related scenario analysis, but also by the information it

develops in combining those inputs to carry out the analysis. The entity shall

prioritise the analytical choices (for example, whether to use qualitative

analysis or quantitative modelling) that will enable it to consider all

reasonable and supportable information that is available to the entity at the

reporting date without undue cost or effort. For example, if an entity is able—

without undue cost or effort—to incorporate multiple carbon price pathways

associated with a given outcome (for example, a 1.5 degree Celsius outcome),

this analysis is likely to strengthen the entity’s resilience assessment,

assuming such an approach is warranted by the entity’s risk exposure.

Quantitative information will often enable an entity to carry out a more

robust assessment of its climate resilience. However, qualitative information

(including scenario narratives), either alone or combined with quantitative

data, can also provide a reasonable and supportable basis for the entity’s

resilience assessment.

Additional considerations

Climate-related scenario analysis is an evolving practice and, therefore, the

approach that an entity uses is likely to change over time. As described in

paragraphs B2–B7, the entity shall determine its approach to climate-related

scenario analysis based on its particular circumstances, including the entity’s

exposure to climate-related risks and opportunities and the skills, capabilities

and resources available for the scenario analysis. Those circumstances are also

likely to change over time. Therefore, the entity’s approach to climate-related

scenario analysis need not be the same from one reporting period or strategic

planning cycle to the next (see paragraph B18).

B13

B14

B15

B16

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

An entity might use a simpler approach to climate-related scenario analysis,

such as qualitative scenario narratives, if such an approach is appropriate to

the entity’s circumstances. For example, if an entity does not currently have

the skills, capabilities or resources to carry out quantitative climate-related

scenario analysis but has a high degree of exposure to climate-related risk, the

entity might initially use a simpler approach to climate-related scenario

analysis, but would build its capabilities through experience and, therefore,

would apply a more advanced quantitative approach to climate-related

scenario analysis over time. An entity with a high degree of exposure to

climate-related risks and opportunities, and with access to the necessary skills,

capabilities or resources, is required to apply a more advanced quantitative

approach to climate-related scenario analysis.

Although paragraph 22 requires an entity to disclose information about its

climate resilience at each reporting date, the entity might carry out its

climate-related scenario analysis in line with its strategic planning cycle,

including a multi-year strategic planning cycle (for example, every three to

five years). Therefore, in some reporting periods the entity’s disclosures in

accordance with paragraph 22(b) could remain unchanged from the previous

reporting period if the entity does not conduct a scenario analysis annually.

The entity shall—at a minimum—update its climate-related scenario analysis

in line with its strategic planning cycle. However, an assessment of the entity’s

resilience is required to be carried out annually to reflect updated insight into

the implications of climate uncertainty for the entity’s business model and

strategy. As such, an entity’s disclosure in accordance with paragraph 22(a)—

that is, the results of the entity’s resilience assessment—shall be updated at

each reporting period.

B17

B18

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28 © IFRS Foundation

Greenhouse gases (paragraph 29(a))

Greenhouse gas emissions

Permission to use information from a reporting period that is

different from the entity’s reporting period, in specic

circumstances

An entity might have a different reporting period from some or all of the

entities in its value chain. Such a difference would mean that greenhouse gas

emissions information from these entities in its value chain for the entity’s

reporting period might not be readily available for the entity to use for its own

disclosure. In such circumstances, the entity is permitted to measure its

greenhouse gas emissions in accordance with paragraph 29(a)(i) using

information for reporting periods that are different from its own reporting

period if that information is obtained from entities in its value chain with

reporting periods that are different from the entity’s reporting period, on the

condition that:

(a)

the entity uses the most recent data available from those entities in its

value chain without undue cost or effort to measure and disclose its

greenhouse gas emissions;

(b)

the length of the reporting periods is the same; and

circumstances (relevant to its greenhouse gas emissions) that occur

between the reporting dates of the entities in its value chain and the

date of the entity’s general purpose financial reports.

Aggregation of greenhouse gases into CO

equivalent using global

warming potential values

Paragraph 29(a) requires an entity to disclose its absolute gross greenhouse gas

emissions generated during the reporting period, expressed as metric tonnes

of CO

equivalent. To meet this requirement, the entity shall aggregate the

seven constituent greenhouse gases into CO

equivalent values.

If an entity uses direct measurement to measure its greenhouse gas emissions,

the entity is required to convert the seven constituent greenhouse gases into a

equivalent value using global warming potential values based on a 100-

year time horizon, from the latest Intergovernmental Panel on Climate

Change assessment available at the reporting date.

If an entity uses emission factors to estimate its greenhouse gas emissions, the

entity shall use—as its basis for measuring its greenhouse gas emissions—the

emission factors that best represent the entity’s activity (see paragraph B29). If

these emission factors have already converted the constituent gases into CO

equivalent values, the entity is not required to recalculate the emission factors

using global warming potential values based on a 100-year time horizon from

the latest Intergovernmental Panel on Climate Change assessment available at

the reporting date. However, if an entity uses emission factors that are not

B19

B20

B21

B22

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

converted into CO

equivalent values, then the entity shall use the global

warming potential values based on a 100-year time horizon from the latest

Intergovernmental Panel on Climate Change assessment available at the

reporting date.

Greenhouse Gas Protocol

Paragraph 29(a)(ii) requires an entity to disclose its greenhouse gas emissions

measured in accordance with the Greenhouse Gas Protocol: A Corporate

Accounting and Reporting Standard (2004). For the avoidance of doubt, an

entity shall apply the requirements in the Greenhouse Gas Protocol: A

Corporate Accounting and Reporting Standard (2004) only to the extent that

they do not conflict with the requirements in this Standard. For example, the

Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard

(2004) does not require an entity to disclose its Scope 3 greenhouse gas

emissions, however, the entity is required to disclose Scope 3 greenhouse gas

emissions in accordance with paragraph 29(a).

An entity is required to use the Greenhouse Gas Protocol: A Corporate

Accounting and Reporting Standard (2004) unless the entity is required by a

jurisdictional authority or an exchange on which it is listed to use a different

method for measuring its greenhouse gas emissions. If the entity is required

by a jurisdictional authority or an exchange on which it is listed to use a

different method for measuring its greenhouse gas emissions, the entity is

permitted to use this method rather than using the Greenhouse Gas Protocol:

A Corporate Accounting and Reporting Standard (2004) for as long as the

jurisdictional or exchange requirement applies to the entity.

In some circumstances, an entity might be subject to a requirement in the

jurisdiction in which it operates to disclose its greenhouse gas emissions for a

specific part of the entity or for some of its greenhouse gas emissions (for

example, only for Scope 1 and Scope 2 greenhouse gas emissions). In such

circumstances, the jurisdictional requirement does not exempt the entity

from applying the requirements in this Standard to disclose the entity’s Scope

1, Scope 2 and Scope 3 greenhouse gas emissions for the entity as a whole.

Measurement approach, inputs and assumptions

Paragraph 29(a)(iii) requires an entity to disclose the measurement approach,

inputs and assumptions it uses to measure its greenhouse gas emissions. As

part of this requirement, the entity shall include information about:

(a) the measurement approach the entity uses in accordance with the

Greenhouse Gas Protocol: A Corporate Accounting and Reporting

Standard (2004) (see paragraph B27);

(b)

the applicable method if the entity is not using the Greenhouse Gas

Protocol: A Corporate Accounting and Reporting Standard (2004) and

the measurement approach the entity uses (see paragraph B28); and

(c)

the emission factors the entity uses (see paragraph B29).

B23

B24

B25

B26

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30 © IFRS Foundation

The measurement approach set out in the Greenhouse Gas

Protocol

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting

Standard (2004) includes different measurement approaches that an entity

might use when measuring its greenhouse gas emissions. In disclosing

information in accordance with paragraph 29(a)(iii), the entity is required to

disclose information about the measurement approach it uses. For example,

when the entity discloses its greenhouse gas emissions measured in

accordance with the Greenhouse Gas Protocol: A Corporate Accounting and

Reporting Standard (2004), the entity is required to use the equity share or

control approach. Specifically, the entity shall disclose:

(a)

the approach it uses to determine its greenhouse gas emissions (for

example, the equity share or control approach in the Greenhouse Gas

Protocol: A Corporate Accounting and Reporting Standard (2004)); and

(b) the reason, or reasons, for the entity’s choice of measurement

approach and how that approach relates to the disclosure objective in

paragraph 27.

Other methods and measurement approaches

When an entity discloses its greenhouse gas emissions measured in

accordance with another method, applying paragraphs 29(a)(ii), B24–B25 or

C4(a), the entity shall disclose:

(a) the applicable method and measurement approach the entity uses to

determine its greenhouse gas emissions; and

(b) the reason, or reasons, for the entity’s choice of method and

measurement approach and how that approach relates to the

disclosure objective in paragraph 27.

Emission factors

As part of an entity’s disclosure of the measurement approach, inputs and

assumptions, the entity shall disclose information to enable users of general

purpose financial reports to understand which emission factors the entity uses

in its measurement of its greenhouse gas emissions. This Standard does not

specify emission factors an entity is required to use in its measurement of its

greenhouse gas emissions. Instead, this Standard requires an entity to use

emission factors that best represent the entity’s activity as its basis for

measuring its greenhouse gas emissions.

Scope 2 greenhouse gas emissions

Paragraph 29(a)(v) requires an entity to disclose its location-based Scope 2

greenhouse gas emissions and provide information about any contractual

instruments the entity has entered into that could inform users’

understanding of the entity’s Scope 2 greenhouse gas emissions. For the

avoidance of doubt, an entity is required to disclose its Scope 2 greenhouse gas

emissions using a location-based approach and is required to provide

information about contractual instruments only if such instruments exist and

B27

B28

B29

B30

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

information about them informs users’ understanding of an entity’s Scope 2

greenhouse gas emissions.

Contractual instruments are any type of contract between an entity and

another party for the sale and purchase of energy bundled with attributes

about the energy generation or for unbundled energy attribute claims

(unbundled energy attribute claims relate to the sale and purchase of energy

that is separate and distinct from the greenhouse gas attribute contractual

instruments). Various types of contractual instruments are available in

different markets and the entity might disclose information about its market-

based Scope 2 greenhouse gas emissions as part of its disclosure.

Scope 3 greenhouse gas emissions

In accordance with paragraph 29(a)(vi), an entity shall disclose information

about its Scope 3 greenhouse gas emissions to enable users of general purpose

financial reports to understand the source of these emissions. The entity shall

consider its entire value chain (upstream and downstream) and shall consider

all 15 categories of Scope 3 greenhouse gas emissions, as described in the

Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and

Reporting Standard (2011). In accordance with paragraph 29(a)(vi), the entity

shall disclose which of these categories are included in its Scope 3 greenhouse

gas emissions disclosures.

For the avoidance of doubt, regardless of the method an entity uses to

measure its greenhouse gas emissions, the entity is required to disclose the

categories included within its measure of Scope 3 greenhouse gas emissions as

described in paragraph 29(a)(vi)(1).

In accordance with paragraph B11 in IFRS S1, on the occurrence of a

significant event or a significant change in circumstances, an entity shall

reassess the scope of all affected climate-related risks and opportunities

throughout its value chain, including reassessing which Scope 3 categories

and entities throughout its value chain to include in the measurement of its

Scope 3 greenhouse gas emissions. A significant event or significant change in

circumstances can occur without the entity being involved in that event or

change in circumstances or as a result of a change in what the entity assesses

to be important to users of general purpose financial reports. For example,

such significant events or significant changes in circumstances might include:

(a) a significant change in the entity's value chain (for example, a supplier

in the entity's value chain makes a change that significantly alters the

supplier’s greenhouse gas emissions);

(b) a significant change in the entity’s business model, activities or

corporate structure (for example, a merger or acquisition that expands

the entity's value chain); and

and opportunities (for example, a supplier in the entity’s value chain is

affected by the introduction of an emissions regulation that the entity

had not anticipated).

B31

B32

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B34

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

An entity is permitted, but not required, to reassess the scope of any climate-

related risk or opportunity throughout its value chain more frequently than

required by paragraph B11 in IFRS S1.

In accordance with paragraph B6(b) in IFRS S1, to determine the scope of the

value chain, which includes its breadth and composition, an entity shall use

all reasonable and supportable information that is available to the entity at

the reporting date without undue cost or effort.

An entity that participates in one or more financial activities associated with

asset management, commercial banking and insurance shall disclose

additional information about the financed emissions associated with those

activities as part of the entity’s disclosure of its Scope 3 greenhouse gas

emissions (see paragraphs B58–B63).

Scope 3 measurement framework

An entity’s measurement of Scope 3 greenhouse gas emissions is likely to

include the use of estimation rather than solely comprising direct

measurement. In measuring Scope 3 greenhouse gas emissions an entity shall

use a measurement approach, inputs and assumptions that result in a faithful

representation of this measurement. The measurement framework described

in paragraphs B40–B54 provides guidance for an entity to use in preparing its

Scope 3 greenhouse gas emissions disclosures.

An entity is required to use all reasonable and supportable information that is

available to the entity at the reporting date without undue cost or effort when

the entity selects the measurement approach, inputs and assumptions it uses

in measuring Scope 3 greenhouse gas emissions.

An entity’s measurement of Scope 3 greenhouse gas emissions relies upon a

range of inputs. This Standard does not specify the inputs the entity is

required to use to measure its Scope 3 greenhouse gas emissions, but does

require the entity to prioritise inputs and assumptions using these identifying

characteristics (which are listed in no particular order):

(a) data based on direct measurement (paragraphs B43–B45);

(b) data from specific activities within the entity’s value chain (paragraphs

B46–B49);

technology used for, the value chain activity and its greenhouse gas

emissions (paragraphs B50–B52); and

(d) data that has been verified (paragraphs B53–B54).

An entity is required to apply the Scope 3 measurement framework to

prioritise inputs and assumptions even when the entity is required by a

jurisdictional authority or an exchange on which the entity is listed to use a

method other than the Greenhouse Gas Protocol: A Corporate Accounting and

Reporting Standard (2004) for measuring its greenhouse gas emissions (see

paragraphs B24–B25), or whether the entity uses the transition relief described

in paragraph C4(a).

B35

B36

B37

B38

B39

B40

B41

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

An entity’s prioritisation of the measurement approach, inputs and

assumptions and the entity’s considerations of associated trade-offs—based on

the characteristics in paragraph B40—requires management to apply

judgement. For example, an entity might need to consider the trade-offs

between timely data and data that is more representative of the jurisdiction

and technology used for the value chain activity and its emissions. More

recent data might provide less detail about the specific activity, including the

technology that was used in the value chain and the location of that activity.

On the other hand, older data that is published infrequently might be

considered more representative of the specific activity and its greenhouse gas

emissions.

Data based on direct measurement

Two methods are used to quantify Scope 3 greenhouse gas emissions: direct

measurement and estimation. Of these two methods—and with all else being

equal—an entity shall prioritise direct measurement.

‘Direct measurement’ refers to the direct monitoring of greenhouse gas

emissions and, in theory, provides the most accurate evidence. However, it is

expected that Scope 3 greenhouse gas emissions data will include estimation

due to the challenges associated with direct measurement of Scope 3

greenhouse gas emissions.

Estimation of Scope 3 greenhouse gas emissions involves approximate

calculations of data based on assumptions and appropriate inputs. An entity

that measures its Scope 3 greenhouse gas emissions using estimation is likely

to use two types of input:

(a) data that represents the entity’s activity that results in greenhouse gas

emissions (activity data). For example, the entity might use distance

travelled as activity data to represent the transport of goods within its

value chain.

(b) emission factors that convert activity data into greenhouse gas

emissions. For example, the entity will convert the distance travelled

(activity data) into greenhouse gas emissions data using emission

factors.

Data from specic activities within the entity

’

s value chain

An entity’s measurement of its Scope 3 greenhouse gas emissions will be based

on data obtained directly from specific activities within the entity’s value

chain (primary data), data not obtained directly from activities within the

entity’s value chain (secondary data), or a combination of both.

In measuring an entity’s Scope 3 greenhouse gas emissions, primary data is

more likely to be representative of the entity’s value chain activity and its

greenhouse gas emissions than secondary data. Therefore, the entity shall

prioritise—with all else being equal—the use of primary data.

B42

B43

B44

B45

B46

B47

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

Primary data for Scope 3 greenhouse gas emissions includes data provided by

suppliers or other entities in the value chain related to specific activities in an

entity’s value chain. For example, primary data could be sourced from meter

readings, utility bills or other methods that represent specific activities in the

entity’s value chain. Primary data could be collected internally (for example,

through the entity’s own records), or externally from suppliers and other

value chain partners (for example, supplier-specific emission factors for

purchased goods or services). Data from specific activities within an entity’s

value chain provides a more accurate representation of the entity’s specific

value chain activities and, therefore, will provide a better basis for measuring

the entity’s Scope 3 greenhouse gas emissions.

Secondary data for Scope 3 greenhouse gas emissions is data that is not

obtained directly from specific activities within an entity’s value chain.

Secondary data is often supplied by third-party data providers and includes

industry-average data (for example, from published databases, government

statistics, literature studies and industry associations). Secondary data

includes data used to approximate the activity or emission factors.

Additionally, secondary data includes primary data from a specific activity

(proxy data) used to estimate greenhouse gas emissions for another activity. If

an entity uses secondary data to measure its Scope 3 greenhouse gas

emissions, it shall consider the extent to which the data faithfully represents

the entity’s activities.

Timely data that faithfully represents the jurisdiction of, and the

technology used for, the value chain activity and its greenhouse gas

emissions

If an entity uses secondary data, it shall prioritise the use of activity or

emissions data that is based on, or represents, the technology used in the

value chain activity the data is intended to represent. For example, an entity

might obtain primary data from its activities (for example, the specific aircraft

model, distance travelled and travel-class used by employees when travelling)

and would then use secondary data that represents the greenhouse gas

emissions arising from those activities to convert the primary data into an

estimate of its greenhouse gas emissions from air travel.

If an entity uses secondary data, it shall prioritise activity or emissions data

that is based on, or represents, the jurisdiction in which the activity

happened. For example, an entity shall prioritise emission factors that relate

to the jurisdiction in which the entity operates or in which the activity has

taken place.

If an entity uses secondary data, it shall prioritise activity or emissions data

that is timely and representative of the entity’s value chain activity during the

reporting period. In some jurisdictions, and for some technologies, secondary

data is collected annually and, therefore, the data is likely to be representative

of the entity’s current practice. However, some secondary data sources rely on

information collected in a reporting period that is different from the entity’s

own reporting period.

B48

B49

B50

B51

B52

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

Veried data

An entity shall prioritise Scope 3 greenhouse gas emissions data that is

verified. Verification can provide users of general purpose financial reports

with confidence that the information is complete, neutral and accurate.

Verified data might include data that has been internally or externally

verified. Verification can take place in several ways, including on-site

checking, reviewing calculations, or cross-checking of data against other

sources. However, in some cases an entity might be unable to verify its Scope 3

greenhouse gas emissions without undue cost or effort. For example, the

entity might be prevented from obtaining a complete set of verified data due

to the volume of data or because the data is obtained from entities in the

value chain that are separated by many tiers from the reporting entity, that is,

entities that the reporting entity does not interact with directly. In such cases,

an entity might need to use unverified data.

Disclosure of inputs to Scope 3 greenhouse gas emissions

An entity shall disclose information about the measurement approach, inputs

and assumptions it uses to measure its Scope 3 greenhouse gas emissions in

accordance with paragraph 29(a)(iii). This disclosure shall include information

about the characteristics of the data inputs as described in paragraph B40. The

purpose of this disclosure is to provide users of general purpose financial

reports with information about how the entity has prioritised the highest

quality data available, which faithfully represents the value chain activity and

its Scope 3 greenhouse gas emissions. This disclosure also helps users of

general purpose financial reports to understand why the measurement

approach, inputs and assumptions the entity uses to estimate its Scope 3

greenhouse gas emissions are relevant.

As part of the requirement in paragraph 29(a)(iii), and to reflect how an entity

prioritises Scope 3 data in accordance with the measurement framework set

out in paragraphs B40–B54, the entity shall disclose information that enables

users of general purpose financial reports to understand:

(a) the extent to which the entity’s Scope 3 greenhouse gas emissions are

measured using inputs from specific activities within the entity’s value

chain; and

(b) the extent to which the entity’s Scope 3 greenhouse gas emissions are

measured using inputs that are verified.

This Standard includes the presumption that Scope 3 greenhouse gas

emissions can be estimated reliably using secondary data and industry

averages. In those rare cases when an entity determines it is impracticable to

estimate its Scope 3 greenhouse gas emissions, the entity shall disclose how it

is managing its Scope 3 greenhouse gas emissions. Applying a requirement is

impracticable when the entity cannot apply it after making every reasonable

effort to do so.

B53

B54

B55

B56

B57

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

Financed emissions

Entities participating in financial activities face risks and opportunities related

to the greenhouse gas emissions associated with those activities.

Counterparties, borrowers or investees with higher greenhouse gas emissions

might be susceptible to risks associated with technological changes, shifts in

supply and demand and policy change, which in turn can affect the financial

institution that is providing financial services to these entities. These risks and

opportunities can arise in the form of credit risk, market risk, reputational

risk and other financial and operational risks. For example, credit risk might

arise in relation to financing clients affected by increasingly stringent carbon

taxes, fuel efficiency regulations or other policies; credit risk might also arise

through technological shifts. Reputational risk might arise from financing

fossil-fuel projects. Entities participating in financial activities, including

commercial and investment banks, asset managers and insurance entities, are

increasingly monitoring and managing such risks by measuring their financed

emissions. This measurement serves as an indicator of an entity’s exposure to

climate-related risks and opportunities and how the entity might need to

adapt its financial activities over time.

Paragraph 29 (a)(i)(3) requires an entity to disclose its absolute gross Scope 3

greenhouse gas emissions generated during the reporting period, including

upstream and downstream emissions. An entity that participates in one or

more of the following financial activities is required to disclose additional and

specific information about its Category 15 emissions or those emissions

associated with its investments which is also known as ‘financed emissions’:

(a) asset management (see paragraph B61);

(b) commercial banking (see paragraph B62); and

An entity shall apply the requirements for disclosing greenhouse gas

emissions in accordance with paragraph 29(a) when disclosing information

about its financed emissions.

Asset management

An entity that participates in asset management activities shall disclose:

(a) its absolute gross financed emissions, disaggregated by Scope 1, Scope

2 and Scope 3 greenhouse gas emissions.

(b) for each of the disaggregated items in paragraph B61(a), the total

amount of assets under management (AUM) that is included in the

financed emissions disclosure, expressed in the presentation currency

of the entity’s financial statements.

emissions calculation. If the percentage is less than 100%, the entity

shall disclose information that explains the exclusions, including types

of assets and associated amount of AUM.

B58

B59

B60

B61

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

(d) the methodology used to calculate the financed emissions, including

the method of allocation the entity used to attribute its share of

emissions in relation to the size of investments.

Commercial banking

An entity that participates in commercial banking activities shall disclose:

(a) its absolute gross financed emissions, disaggregated by Scope 1, Scope

2 and Scope 3 greenhouse gas emissions for each industry by asset

class. When disaggregating by:

(i)

industry—the entity shall use the Global Industry Classification

Standard (GICS) 6-digit industry-level code for classifying

counterparties, reflecting the latest version of the classification

system available at the reporting date.

(ii) asset class—the disclosure shall include loans, project finance,

bonds, equity investments and undrawn loan commitments. If

the entity calculates and discloses financed emissions for other

asset classes, it shall include an explanation of why the

inclusion of those additional asset classes provides relevant

information to users of general purpose financial reports.

(b) its gross exposure to each industry by asset class, expressed in the

presentation currency of the entity’s financial statements. For:

(i) funded amounts—gross exposure shall be calculated as the

funded carrying amounts (before subtracting the loss

allowance, when applicable), whether prepared in accordance

with IFRS Accounting Standards or other GAAP.

(ii) undrawn loan commitments—the entity shall disclose the full

amount of the commitment separately from the drawn portion

of loan commitments.

emissions calculation. The entity shall:

(i) if the percentage of the entity’s gross exposure included in the

financed emissions calculation is less than 100%, disclose

information that explains the exclusions, including the type of

assets excluded.

(ii) for funded amounts, exclude from gross exposure all impacts of

risk mitigants, if applicable.

(iii) disclose separately the percentage of its undrawn loan

commitments included in the financed emissions calculation.

(d)

the methodology the entity used to calculate its financed emissions,

including the method of allocation the entity used to attribute its

share of emissions in relation to the size of its gross exposure.

B62

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

Insurance

An entity that participates in financial activities associated with the insurance

industry shall disclose:

(a) its absolute gross financed emissions, disaggregated by Scope 1, Scope

2 and Scope 3 greenhouse gas emissions for each industry by asset

class. When disaggregating by:

(i) industry—the entity shall use the Global Industry Classification

Standard (GICS) 6-digit industry-level code for classifying

counterparties, reflecting the latest version of the classification

system available at the reporting date.

(ii) asset class—the disclosure shall include loans, bonds and equity

investments, as well as undrawn loan commitments. If the

entity calculates and discloses financed emissions for other

asset classes, it shall include an explanation of why the

inclusion of those additional asset classes provides relevant

information to users of general purpose financial reports.

(b)

the gross exposure for each industry by asset class, expressed in the

presentation currency of the entity’s financial statements. For:

(i) funded amounts—gross exposure shall be calculated as the

funded carrying amounts (before subtracting the loss

allowance, when applicable), whether prepared in accordance

with IFRS Accounting Standards or other GAAP.

(ii) undrawn loan commitments—the entity shall disclose the full

amount of the commitment separately from the drawn portion

of loan commitments.

emissions calculation. The entity shall:

(i) if the percentage of the entity’s gross exposure included in the

financed emissions calculation is less than 100%, disclose

information that explains the exclusions, including type of

assets excluded.

(ii) disclose separately the percentage of its undrawn loan

commitments included in the financed emissions calculation.

(d) the methodology the entity used to calculate its financed emissions,

including the method of allocation the entity used to attribute its

share of emissions in relation to the size of its gross exposure.

B63

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

Cross-industry metric categories (paragraph 29(b)–(g))

In addition to information about an entity’s greenhouse gas emissions, the

entity is required to disclose information relevant to the cross-industry metric

categories set out in paragraph 29(b)–(g).

In preparing disclosures to fulfil the requirements in paragraph 29(b)–(g), an

entity shall:

(a) consider the time horizons over which the effects of climate-related

risks and opportunities could reasonably be expected to occur,

described in accordance with paragraph 10.

(b) consider where in the entity’s business model and value chain climate-

related risks and opportunities are concentrated (for example,

geographical areas, facilities or types of assets) (see paragraph 13).

(c)

consider the information disclosed in accordance with

paragraph 16(a)–(b) in relation to the effects of climate-related risks

and opportunities on the entity’s financial position, financial

performance and cash flows for the reporting period.

(d)

consider whether industry-based metrics, as described in paragraph 32

—including those defined in an applicable IFRS Sustainability

Disclosure Standard or those that otherwise satisfy the requirements

in IFRS S1—could be used to satisfy the requirements in whole or in

part.

(e) consider the connections between the information disclosed to fulfil

the requirements in paragraph 29(b)–(g) with the information

disclosed in the related financial statements, in accordance with

paragraph 21(b)(ii) of IFRS S1. These connections include consistency in

the data and assumptions used—to the extent possible—and linkages

between the amounts disclosed in accordance with paragraph 29(b)–(g)

and the amounts recognised and disclosed in the financial statements.

For example, an entity would consider whether the carrying amount of

assets used is consistent with amounts included in the financial

statements and would explain the connections between information in

these disclosures and amounts in the financial statements.

B64

B65

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

Climate-related targets (paragraphs 33–37)

Characteristics of a climate-related target

Paragraph 33 requires an entity to disclose the quantitative or qualitative

climate-related targets it has set, and any it is required to meet by law or

regulation, including any greenhouse gas emissions targets. In disclosing these

climate-related targets, the entity is required to disclose information about the

characteristics of these targets as described in paragraph 33(a)–(h). If the

climate-related target is quantitative, an entity is required to describe whether

the target is an absolute target or an intensity target. An absolute target is

defined as a total amount of a measure or a change in the total amount of a

measure, whereas an intensity target is defined as a ratio of a measure, or a

change in the ratio of a measure, to a business metric.

In identifying and disclosing the metric used to set a climate-related target

and measure progress, an entity shall consider the cross-industry metrics and

industry-based metrics. If the metric has been developed by the entity to

measure progress towards a target, the entity shall disclose information about

that metric in accordance with paragraph 50 of IFRS S1.

Greenhouse gas emissions targets

Gross and net greenhouse gas emissions targets

If an entity has a greenhouse gas emissions target, the entity is required to

specify whether the target is a gross greenhouse gas emissions target or a net

greenhouse gas emissions target. Gross greenhouse gas emissions targets

reflect the total changes in greenhouse gas emissions planned within the

entity’s value chain. Net greenhouse gas emissions targets are the entity’s

targeted gross greenhouse gas emissions minus any planned offsetting efforts

(for example, the entity’s planned use of carbon credits to offset its

greenhouse gas emissions).

Paragraph 36(c) specifies that if an entity has a net greenhouse gas emissions

target it is required to also disclose a gross greenhouse gas emissions target.

For the avoidance of doubt, if the entity discloses a net greenhouse gas

emissions target, this target cannot obscure information about its gross

greenhouse gas emissions targets.

Carbon credits

Paragraph 36(e) requires an entity to describe its planned use of carbon credits

—which are transferable or tradeable instruments—to offset emissions to

achieve any net greenhouse gas emissions targets the entity has set, or any it

is required to meet by law or regulation. Any information about the planned

use of carbon credits shall clearly demonstrate the extent to which these

carbon credits are relied on to achieve the net greenhouse gas emissions

targets.

B66

B67

B68

B69

B70

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

In accordance with paragraph 36(e), an entity is required to disclose only its

planned use of carbon credits. However, as part of this disclosure, the entity

might also include information about carbon credits it has already purchased

that the entity is planning to use to meet its net greenhouse gas emissions

target, if the information enables users of general purpose financial reports to

understand the entity’s greenhouse gas emissions target.

B71

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

Appendix C

Effective date and transition

This appendix is an integral part of IFRS S2 and has the same authority as the other parts of the

Standard.

Effective date

An entity shall apply this Standard for annual reporting periods beginning on

or after 1 January 2024. Earlier application is permitted. If an entity applies

this Standard earlier, it shall disclose that fact and apply IFRS S1 General

Requirements for Disclosure of Sustainability-related Financial Information at the same

time.

For the purposes of applying paragraphs C3–C5, the date of initial application

is the beginning of the annual reporting period in which an entity first applies

this Standard.

Transition

An entity is not required to provide the disclosures specified in this Standard

for any period before the date of initial application. Accordingly, an entity is

not required to disclose comparative information in the first annual reporting

period in which it applies this Standard.

In the first annual reporting period in which an entity applies this Standard,

the entity is permitted to use one or both of these reliefs:

(a) if, in the annual reporting period immediately preceding the date of

initial application of this Standard, the entity used a method for

measuring its greenhouse gas emissions other than the Greenhouse

Gas Protocol: A Corporate Accounting and Reporting Standard (2004),

the entity is permitted to continue using that other method; and

(b) an entity is not required to disclose its Scope 3 greenhouse gas

emissions (see paragraph 29(a)) which includes, if the entity

participates in asset management, commercial banking or insurance

activities, the additional information about its financed emissions (see

paragraph 29(a)(vi)(2) and paragraphs B58–B63).

If an entity uses the relief in paragraph C4(a) or paragraph C4(b), the entity is

permitted to continue to use that relief for the purposes of presenting that

information as comparative information in subsequent reporting periods.

IFRS SUSTAINABILITY DISCLOSURE STANDARDS

Approval by the ISSB of IFRS S2 Climate-related Disclosures

issued in June 2023

IFRS S2 Climate-related Disclosures was approved for issue by all 14 members of the

International Sustainability Standards Board.

Emmanuel Faber Chair

Jingdong Hua Vice-Chair

Suzanne Lloyd Vice-Chair

Richard Barker

Jenny Bofinger-Schuster

Verity Chegar

Jeffrey Hales

Michael Jantzi

Hiroshi Komori

Bing Leng

Ndidi Nnoli-Edozien

Tae-Young Paik

Veronika Pountcheva

Elizabeth Seeger

IFRS S2 CLIMATE-RELATED DISCLOSURES—JUNE 2023

Columbus Building

7 Westferry Circus

Canary Wharf

London E14 4HD, UK

Tel +44 (0) 20 7246 6410

Email sustainability_licensing@ifrs.org

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