ISSB Standards
IFRS S2: Governance and strategy – ISSB Standards

ISSB Standards S2-22: S2.22: Climate resilience and scenario analysis

The entity applies climate-related scenario analysis in a way that suits its circumstances (B1 to B18: exposure to climate risks and opportunities and available skills, capabilities and resources, reassessed each time; inputs and analytical choices using all reasonable and supportable information; more advanced quantitative analysis where exposure is high and resources exist; analysis at least in line with the strategic planning cycle, with the resilience assessment updated every reporting period), and discloses its resilience assessment at the reporting date: implications for strategy and business model and how it would respond; significant areas of uncertainty; capacity to adjust or adapt over each horizon, including availability and flexibility of financial resources, ability to upgrade, decommission, redeploy or repurpose assets, and the effect of current and planned investments in mitigation, adaptation and opportunities; and how and when the analysis was carried out: the scenarios used and their sources, whether a diverse range was used, whether they relate to transition or physical risks, whether any of them matches the most recent international climate agreement, why they are relevant, the time horizons and scope of operations, the key assumptions (jurisdictional climate policies, macroeconomic trends, national or regional variables such as weather, demographics, land use, infrastructure and resources, energy usage and mix, technology), and which reporting period the analysis was performed in.

Maintained by Gerard BlokdykVerified against the published standard Control text last updated

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