ISSB IFRS S2 Climate-Related Disclosures 2

Question 1

Under IFRS S2, what does 'climate resilience' assessment require entities to disclose?

Accepted Answer

The resilience of the entity's strategy and business model to climate-related changes, including under different climate scenarios

Answer

IFRS S2 requires entities to assess and disclose how resilient their strategy is to climate scenarios, including those consistent with limiting warming to 1.5°C.

Question 2

Which industry-specific climate metrics does IFRS S2 require certain entities to disclose?

Accepted Answer

Metrics from the SASB Standards for their respective industry, as referenced in IFRS S2 guidance

Answer

IFRS S2 guidance references SASB industry-specific metrics to supplement the cross-industry climate metrics required of all entities.

Question 3

Under IFRS S2, how must Scope 2 GHG emissions be measured and disclosed?

Accepted Answer

Both location-based and market-based measurements are required

Answer

IFRS S2 requires entities to disclose Scope 2 emissions using both location-based and market-based methodologies to allow full comparability.

Question 4

What climate scenario does IFRS S2 specifically reference as a scenario entities should consider?

Accepted Answer

A scenario consistent with limiting global warming to 1.5°C above pre-industrial levels

Answer

IFRS S2 requires consideration of a 1.5°C scenario, consistent with the Paris Agreement goals, as part of climate resilience assessment.

Question 5

Under IFRS S2, what must an entity disclose if it has a climate transition plan?

Accepted Answer

The key assumptions, dependencies, and how the plan links to financial planning and capital allocation

Answer

IFRS S2 requires detailed disclosure of transition plan assumptions, dependencies, and connection to financial strategy to prevent vague commitments.

ISSB - International Sustainability Standards Board Practice Test

ISSB - International Sustainability Standards Board Practice Test

ISSB IFRS S2 Climate-Related Disclosures 2