Effects Analysis (IFRS S1/S2)

Year Published

2023

Contributing Organizations

International Financial Reporting Standards (IFRS)

Type of Resource

Research/Insights Report

Other

Languages

English

Relevant Topics

Core Topic

Disclosure Standards

Topic 2

Risks & Opportunities: The Business Case

Target Audience

All

Relevant Geography

Global

Resource Description

This resource analyzes the expected costs and benefits of IFRS S1 and IFRS S2, which set global requirements for sustainability- and climate-related financial disclosures. It compares the standards to existing practices and outlines implications for investors, preparers, and markets.

Why This Matters

With fragmented and inconsistent sustainability reporting, IFRS S1 and S2 offer a unified framework aligned with investor needs, supporting more efficient and informed capital allocation.

Key Insights

Aims to improve consistency, comparability, and reliability of disclosures through a global baseline
IFRS S2 incorporates TCFD and mandates Scope 1, 2, and 3 GHG emissions reporting using the GHG Protocol
Benefits include better data quality, risk management, and access to capital; costs relate to staffing, systems, and assurance
ISSB offers guidance, reliefs, and a capacity-building framework to support implementation, especially in emerging markets

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