Regulatory Framework · ISSB
IFRS S2 climate disclosure, explained
IFRS S2 is the ISSB's global standard for climate-related disclosures — the baseline a growing number of countries are building their climate-reporting regimes on. Here is what it covers, how it is structured, and how an SME produces IFRS S2-aligned climate data.
Last updated:
Summary for orientation only. IFRS S2 is a standard, not a law; its force depends on the jurisdiction adopting it. Not legal or accounting advice.
- IFRS S2 is the ISSB's global standard for climate-related disclosures.
- It is structured on the four TCFD pillars: governance, strategy, risk management, and metrics & targets.
- Metrics & targets include Scope 1, 2, and 3 greenhouse-gas emissions.
- It is a standard, not a law — it binds where a jurisdiction adopts it, which many are doing.
- For SMEs, the practical need is climate data buyers and investors can rely on — which an ESG Passport provides.
What is IFRS S2?
IFRS S2 — Climate-related Disclosures is a standard issued by the International Sustainability Standards Board (ISSB), part of the IFRS Foundation. Alongside IFRS S1 (which covers general sustainability-related financial information), it gives capital markets a single, comparable language for how climate affects a business. It is designed to be a global baseline that national regulators can adopt or build on.
The four pillars of IFRS S2
IFRS S2 organises its disclosures around the same four areas the TCFD popularised:
- Governance — the board and management oversight of climate-related risks and opportunities.
- Strategy — the climate-related risks and opportunities the business faces and their effects on its business model, strategy, and financial position.
- Risk management — how climate-related risks are identified, assessed, and managed, and how that integrates with overall risk processes.
- Metrics & targets — the measurements used to manage climate, including Scope 1, Scope 2, and Scope 3 greenhouse-gas emissions, and any targets set.
Who adopts IFRS S2
Because IFRS S2 is a standard rather than a statute, it takes legal force through adoption. A growing number of jurisdictions are using IFRS S1 and S2 as the foundation of their own climate-disclosure regimes — for example Japan (SSBJ), Australia (ASRS), and others. That is what makes IFRS S2 the practical global reference point for climate disclosure, even where the local rules carry a different name.
IFRS S2 vs VSME vs the California laws
A quick orientation, since these are easy to mix up:
- IFRS S2 / ISSB — a global, climate-specific disclosure baseline across the four pillars above.
- VSME — a voluntary EU standard for SMEs spanning environment, social, and governance, broader than climate alone.
- California SB 253 / SB 261 — US state laws that mandate emissions and climate-risk disclosure for large companies doing business in California.
They overlap heavily on emissions. EcoDiligence lets you enter that data once and map it to whichever framework a stakeholder recognises.
How to produce IFRS S2-aligned data with EcoDiligence
Scope 1 & Scope 2 emissions
The metrics core of IFRS S2 starts with your own emissions — EcoDiligence calculates them from your energy data with country-correct grid factors.
ISSB Transition Readiness (Pro)
An optional layer covering IFRS S2 transition-plan topics: GHG-reduction targets, timeframes, strategy, materiality, and financial-impact assessment.
Transparent and sourced
Every emission factor names its source and vintage. See the Methodology page for how the figures are derived.
Shareable Passport, PDF & exports
A public URL, a branded PDF, and machine-readable exports (VSME Digital Template in Excel + XBRL) from one set of answers.
Create your free Passport to build the emissions core, then explore the ISSB Transition Readiness layer on the Pro plan.
Frequently asked questions
This page summarises IFRS S2 for orientation only and is not legal or accounting advice. IFRS S2 is a standard of the ISSB; its application to any specific company depends on the jurisdiction and adoption timeline. Always check the official texts at ifrs.org. EcoDiligence ESG Passports are self-reported summaries structured for ESG disclosure workflows. Content is not independently assured. Information aligned with EFRAG VSME and IFRS S2 (ISSB) frameworks does not constitute formal compliance or certification.
Build the climate data your stakeholders ask for
Start with Scope 1 and Scope 2 in a free ESG Passport; add IFRS S2 transition topics when you need them.