LAYER 2 · Sustainability reporting & disclosure
ISSB – IFRS S1 & IFRS S2
The IFRS Foundation's ISSB issued IFRS S1 (general requirements for sustainability-related financial disclosures) and IFRS S2 (climate-related disclosures). They focus on sustainability risks and opportunities that affect cash flows and access to finance, across four pillars: governance, strategy, risk management, and metrics and targets. Many jurisdictions are adopting them or setting roadmaps.
Criteria used by FTS Impact Lab
In the Assess tool you can check your initiative against each criterion below (met, partly met, not met, not applicable).
- Governance: board and management oversee sustainability risks and opportunities
- Strategy: risks and opportunities affecting finances over short, medium and long term
- Climate scenario analysis proportionate to the company
- Risk management: sustainability risks are integrated into enterprise risk management
- Metrics and targets: scope 1, 2, 3 emissions and climate targets
- Disclosures are published alongside financial statements
Example indicators to track
- Scope 1, 2, 3 emissions (tCO₂e)
- % assets/revenue exposed to physical or transition climate risk
- Capital deployed to climate opportunities
- Internal carbon price (if any)
FTS Impact Lab refers to this framework for analysis and advice. Results are not a certification or an official conformity assessment.