Download Guide on IFRS Sustainability Standards IFRS S1 and IFRS S2 as at 2025

 

Hello, welcome to IFRS IS EASY!

Note: All the materials in this blog post have been made available to the public for free download by the respective sources. They are compiled here for ease of access to you.

Sustainability is becoming increasingly important to businesses of all sizes. Investors, customers, and other stakeholders are demanding more transparency and accountability on sustainability performance.

To meet these demands, the International Accounting Standards Board (IASB) has developed the first two IFRS Sustainability Standards: IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.

IFRS S1 and IFRS S2 set out specific requirements for disclosing sustainability-related information, including:

IFRS S1:

• Sustainability-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
• How the entity manages those risks and opportunities
• The entity's sustainability-related governance arrangements

IFRS S2:

• Climate-related risks and opportunities that could reasonably be expected to affect the entity's business model, strategy or financial performance over the short, medium or long term
• The entity's greenhouse gas emissions
• Other climate-related information, such as the entity's adaptation plans and climate-related financial targets

IFRS S1 and IFRS S2 will be mandatory for all publicly traded companies in jurisdictions that have adopted IFRS, and they are expected to be widely adopted by other companies as well including companies using US GAAP.

This blog post compiles for you the resources made available by the Big 4 Audit firms to help understand the IFRS Sustainability Standards - IFRS S1 and IFRS S2.

Fun facts:

• Did you know that recycling one aluminum can, saves enough energy to power a TV for 3 hours?
• Did you know that taking a shorter shower can save up to 25 gallons of water per shower?
• IFRS S1 and IFRS S2 are designed to be used in conjunction with IFRS Accounting Standards, providing a comprehensive framework for financial and sustainability reporting.
• The development of IFRS S1 and IFRS S2 was informed by the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Click the links below to download them.

IFRS Sustainability Standards IFRS S1 and IFRS S2:

Source: KPMG

KPMG IFRS Sustainability on IFRS S1 and IFRS S2 Pdf

Source: EY

EY Introduction to IFRS S1 and IFRS S2 Pdf

EY IFRS Accounting for Climate Change Pdf

EY IFRS Sustainability on IFRS S1 and IFRS S2 Pdf

Source: Deloitte

Deloitte iGAAP in Focus on IFRS Sustainability Pdf

Deloitte IFRS Sustainability on IFRS S1 and IFRS S2 Pdf

Sustainability guide: ISSB, ESRS, and Climate disclosure rules

Source: PwC

PwC IFRS Sustainability guide Pdf

*ISSB means IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board.

*ESRS means European Sustainability Reporting Standards (ESRS) adopted by the European Commission for purposes of compliance with the Corporate Sustainability Reporting Directive in the European Union.

*Climate disclosure rules means rules issued by the United States (US) Securities and Exchange Commission (SEC)

Learning materials (Videos and PDF)

Source: ISSB

ISSB IFRS S1 - General Requirements for Disclosure of Sustainability-related Financial Information

ISSB IFRS S2 - Climate-related Disclosures

IFRS S1 and IFRS S2 Standards

Source: ISSB

Access the IFRS S1 and IFRS S2 Standards here

Share your experience in the comment section below about learning and understanding the IFRS sustainability standards.