Framework
ISSB / IFRS S2
The global baseline for climate disclosure — now adopted or endorsed in 20+ jurisdictions and hard-wired into audit expectations.
What it is
The ISSB / IFRS S2 in one paragraph
IFRS S2 Climate-related Disclosures is the climate standard issued by the International Sustainability Standards Board (ISSB) in June 2023, alongside the general-requirements standard IFRS S1. The ISSB sits under the IFRS Foundation, the same body that oversees IFRS Accounting Standards, giving S2 the same institutional weight as financial reporting standards. It consolidates and replaces TCFD, the SASB Standards, the CDSB Framework and the Integrated Reporting Framework into one coherent global baseline for investor-focused sustainability disclosure.
Who's in scope
In scope, thresholds, jurisdictions
IFRS S2 is voluntary at the ISSB level — it becomes mandatory only when a jurisdiction adopts or endorses it. As of 2026, 20+ jurisdictions have adopted, endorsed or announced timelines, including the UK (via UK SRS), Australia, Canada, Japan, Singapore, Hong Kong, Brazil, Malaysia, Nigeria, Turkey and New Zealand. Scope within each jurisdiction typically targets listed companies and large entities, with phase-ins for Scope 3 and SMEs.
Key requirements
- Disclose climate-related risks and opportunities across governance, strategy, risk management, and metrics & targets (TCFD-aligned pillars)
- Report Scope 1, Scope 2 and Scope 3 emissions in line with the GHG Protocol Corporate Standard
- Scope 2 must be reported location-based; market-based disclosure is required where contractual instruments exist
- Scope 3 is mandatory but with a one-year transition relief in the first year of application
- Conduct and disclose climate scenario analysis, including at least one aligned with a 2°C or lower outcome
- Disclose transition plans, targets, and progress against them
- Use industry-based metrics derived from SASB Standards as a starting point
- Disclose financed emissions for financial institutions (banks, insurers, asset managers, asset owners)
Deadlines & timing
- IFRS S1 and S2 issued June 2023; effective for annual periods beginning on or after 1 January 2024 (where adopted)
- Scope 3 and Scope 2 market-based transition relief: one year from first application
- UK: adoption decision via UK SRS expected Q2 2026
- Australia (ASRS S2): phased from FY2025 for largest entities; Group 2 FY2026; Group 3 FY2027
- Canada (CSDS 2) and Japan (SSBJ): effective dates being finalised for FY2026–2027 cohorts
Where finance teams get stuck
Treating sustainability data with the same rigour as financial data — ledgers, controls, close calendar
Sourcing Scope 3 data good enough to survive reasonable-assurance audit, not just limited assurance
Running quantitative scenario analysis without a dedicated climate risk team
Connecting climate metrics to the financial statements (same reporting entity, same period, same estimates)
Industry-specific SASB metrics that don't map cleanly to how the business actually runs
How neoeco helps
- Ledger-first ingestion produces Scope 1/2/3 numbers with the same audit trail as financial line items
- Dual Scope 2 (location- and market-based) plus contractual-instrument tracking for RECs, PPAs, GOs
- Scope 3 category-by-category build with documented methodology per category
- Same-entity, same-period consolidation aligned to your statutory group structure
- Export templates mapped to IFRS S2 disclosure requirements and jurisdictional overlays (UK SRS, ASRS, CSDS)
- Assurance pack: method memos, emission-factor vintages, change log, reconciliation to GL
- Financed-emissions module for in-scope financial institutions (PCAF-aligned)
Related frameworks
UK SRS
The UK's endorsed version of IFRS S1 and S2 — the standard the FCA and DBT will point to when disclosure becomes mandatory.
Read about UK SRSCSRD
The EU's double-materiality disclosure regime — bigger in scope and deeper in detail than anything that came before.
Read about CSRDGHG Protocol
The global accounting rulebook behind every credible carbon number — and every framework that cites Scope 1, 2, 3.
Read about GHG ProtocolISSB / IFRS S2 ready
Generate ISSB / IFRS S2-ready disclosures from your ledger
Book a 30-minute walkthrough focused on ISSB / IFRS S2. We'll show you the data model, the export template, and what your auditor will test.