Nature and Social Aspects of Climate-Related Risks and Opportunities

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

Target Audience

All

Relevant Geography

Global

Resource Description

This educational resource by the ISSB illustrates how entities can apply IFRS S1 and S2 standards to disclose climate-related risks and opportunities linked to nature and social aspects, such as water scarcity, sustainable land use, and just transition.

Why This Matters

Helps preparers align disclosures with real-world sustainability risks and opportunities, strengthening transparency and decision-usefulness for investors.

Key Insights

Provides practical examples of disclosing nature-related risks (eg water stress in agriculture) and opportunities (eg increased demand for certified timber)
Demonstrates how to report social risks, such as workforce impacts from transitioning away from fossil fuels
Reinforces that such disclosures should reflect material impacts on business prospects and align with IFRS guidance, without adding new requirements
Encourages location-specific, sector-specific, and disaggregated reporting for clearer insights

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