IFRS S2 Climate-related Disclosures
ISSB's climate-specific standard, sitting on top of the general IFRS S1. Adopted or being adopted by 25+ jurisdictions as the global baseline for climate disclosure. Builds on TCFD, integrates GHG Protocol scopes.
The ISSB released interpretive guidance on IFRS S2 Industry-Based Disclosures for utilities and extractives — the first two sector-specific guidance documents. The guidance clarifies how SASB-derived industry metrics should be applied within the S2 framework.
Australia (via AASB S2) and Japan (via SSBJ) confirmed full IFRS S2 adoption for FY26 onwards, joining the UK, Brazil, Singapore and Nigeria. Adoption brings the count to 27 jurisdictions with mandatory or strongly-encouraged IFRS S2 alignment.
The FSB formally transferred TCFD monitoring responsibilities to the IFRS Foundation. Reporting under TCFD is folded into IFRS S2, and the TCFD's annual status report is discontinued. Companies already reporting against TCFD have a one-year transition path to S2.
The ISSB issued IFRS S2 Climate-related Disclosures, the climate companion to IFRS S1. S2 requires governance, strategy, risk management and metrics-and-targets disclosures aligned with TCFD, plus mandatory Scope 1, 2 and 3 GHG disclosure subject to a Scope 3 transition relief in year one.
The ISSB published the IFRS S2 exposure draft for public comment. The draft drew heavily on TCFD and the SASB-derived industry-based metrics, and signalled the ISSB would set the global baseline for climate disclosure.
The IFRS Foundation established the International Sustainability Standards Board (ISSB) at COP26 in Glasgow, with the explicit mandate of developing a global baseline for sustainability disclosure starting with climate.