IFRS S2 Reporting Services
Helping you become IFRS S2-compliant with comprehensive and accurate reporting.
What Is IFRS S2?
Effective from January 1st, 2024, the International Financial Reporting Standards (IFRS) S2 represents a significant stride forward in the way businesses report on climate-related financial information.
This new standard aligns closely with the Task Force on Climate-related Financial Disclosures (TCFD or CFD) recommendations but goes further in certain aspects, offering more detailed guidance for businesses.
Understanding IFRS S2
IFRS S2’s primary goal is to ensure that entities provide comprehensive information on how climate-related risks and opportunities impact their financial status.
This involves disclosing potential effects on cash flows, access to finance, and the cost of capital over various timeframes.
The standard categorises climate-related risks into two main types: physical risks and transition risks. Additionally, it recognises the potential for climate-related opportunities that entities might capitalise on.
Comparing IFRS S2 and TCFD
While the TCFD laid the groundwork for climate-related financial disclosures, IFRS S2 builds upon this by introducing more specific requirements.
It demands detailed information about governance processes, risk management strategies, and the integration of climate-related risks into overall business planning.
IFRS S2 also requires entities to report on their performance concerning climate-related targets, including those mandated by law or regulation.
Who Needs A IFRS S2 Report?
Currently, there are five categories of businesses that need an IFRS S2 report in the UK. These are:
- Companies with over 500 employees, shares traded on main UK markets or they are banking/insurance companies.
- Companies listed on AIM (a market segment of the London Stock Exchange for smaller companies) with over 500 employees.
- Companies with an over £500m annual turnover and over 500 employees.
- Limited Liability Partnerships (LLPs) that are not stock-listed or banks with over 500 employees and earn over £500m annually.
- Trading or Banking Limited Liability Partnerships with over 500 employees.
Why Choose Our IFRS Reports
Redlines is a leading innovator in weather and climate analytics, having provided our expertise to businesses such as the National Grid, Bloomberg, and Octopus. We deliver invaluable insights that form the backbone of the IFRS report, ensuring risks are precisely quantified and opportunities are clearly highlighted.
Collaborating with seasoned partners, we encompass all vital components of the IFRS framework presented at the IFRS Sustainability Symposium.
You can call us directly: +44(0)117 214 0405 or submit your question below.
Stay ahead of the curve and join our LinkedIn group, IFRS Insights for UK Businesses. Connect with industry experts and stay informed about the latest developments in climate-related financial disclosures.
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