IFRS S2 Climate-related Disclosures applies the IFRS S1 4-pillar framework specifically to climate-related risks and opportunities + supersedes TCFD recommendations. (1) Scope of IFRS S2: climate-related physical risks (acute physical risks from extreme weather events + chronic physical risks from gradual climate shifts) + climate-related transition risks (policy + legal + technology + market + reputation) + climate-related opportunities (resource efficiency + energy source switching + products and services + markets + resilience). (2) Climate Governance: disclose governance processes for climate including (a) climate-responsible body or person; (b) climate skills and competencies; (c) climate information reporting cadence; (d) climate consideration in strategy + transactions + risk management; (e) climate performance metrics linked to remuneration. (3) Climate Strategy: disclose how climate-related risks and opportunities affect business model + strategy + value chain + decision-making + financial planning + including (a) physical and transition risks across short + medium + long horizons; (b) effects on business model + value chain; (c) anticipated changes to product mix + customer base + supply chain; (d) financial effects on profitability + cash flows + position + capital expenditure. (4) Climate Resilience and Scenario Analysis: assess resilience of strategy + business model + cash flows considering at least 2 climate scenarios + including (a) a scenario aligned with the Paris Agreement (1.5 C maximum global warming target with no or limited overshoot per IPCC); (b) a scenario with greater warming (e.g. 2-4 C); applying climate-related scenario analysis using authoritative + readily available scenarios (IPCC AR6 reports + IEA NZE 2050 + NGFS NDA scenarios + IRENA) + qualitative analysis acceptable initially with quantitative analysis as data and methodology mature + sensitivity to assumptions. (5) Climate Transition Plan Disclosure: where an entity has a transition plan + disclose (a) targets to mitigate climate-related risks; (b) approach to achieving targets + interim milestones; (c) governance + planning processes; (d) capital expenditure; (e) financing alignment; (f) consideration of just transition (worker + community impacts); (g) progress against milestones; (h) revisions and rationale. Transition plans typically aligned with Net Zero by 2050 (Paris Agreement long-term goal) + Glasgow Climate Pact commitments + Mansion House Compact for UK Pensions + Glasgow Financial Alliance for Net Zero (GFANZ). (6) Industry-Based Disclosures: applicable industry-based climate disclosures from SASB Standards Industry-Based Volume (incorporated by reference into IFRS S2 Appendix B - 77 SASB industry standards each with industry-specific climate topics and metrics). Cross-Industry Climate Disclosures from SASB also incorporated. (7) Transition Reliefs (first-year): quantitative scope 3 GHG emissions reliefs + scenario analysis use of qualitative methods + measurement methodology development. Coordinates with TCFD 11 Recommendations + Paris Agreement Articles 4 + 6 + IPCC AR6 IPCC Working Group I/II/III + IEA Net Zero by 2050 + NGFS scenarios + IRENA + Net Zero Asset Owner Alliance + Net Zero Banking Alliance + Net Zero Asset Managers Initiative + Net Zero Insurance Alliance + Glasgow Financial Alliance for Net Zero (GFANZ) + Mark Carney + Just Transition + ILO Just Transition Guidelines + UNFCCC + COP decisions + EU Climate Law + Net Zero 2050 + UK Net Zero Strategy. IFRS S2 Climate Governance + Strategy + Resilience applies.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.