IFRS S2, issued by the International Sustainability Standards Board in June 2023, requires entities to disclose climate-related risks and opportunities reasonably likely to affect their prospects, including cash flows, access to finance and cost of capital. The Standard focuses on governance, strategy (including transition plans and scenario analysis), risk management, and metrics and targets, and mandates reporting of Scope 1, Scope 2 and Scope 3 greenhouse gas emissions and other cross-industry metrics such as financed emissions, capital deployment and internal carbon prices.

Disclosures must be based on all reasonable and supportable information available at the reporting date and be commensurate with an entity's circumstances; scenario analysis is required to assess climate resilience. The Standard generally requires use of the GHG Protocol, requests short, medium and long term financial effects, and is effective for annual periods beginning on or after 1 January 2024, with limited transitional reliefs.