ISSB IFRS S2 Climate-Related Disclosures 3

Question 1

Under IFRS S2, what is the definition of 'climate-related opportunities'?

Accepted Answer

Potential positive effects on the entity arising from climate change or efforts to address it, such as new markets or products

Answer

Government subsidies available for green technology investments only

Answer

Any revenue-generating activity classified as environmentally sustainable

Answer

Opportunities defined by the entity's industry association sustainability roadmap

Question 2

How does IFRS S2 require disclosure of climate-related risks and opportunities affecting the entity's value chain?

Accepted Answer

Entities must disclose material climate risks and opportunities across their upstream and downstream value chain, not just direct operations

Answer

Only Scope 1 emissions from direct operations require value chain consideration

Answer

Value chain disclosures are voluntary and not required under IFRS S2

Answer

Only downstream distribution emissions require value chain analysis

Question 3

Under IFRS S2, what quantitative or qualitative information must entities provide about climate-related risks' financial effects?

Accepted Answer

Current and anticipated financial effects on financial position, financial performance, and cash flows

Answer

Only a qualitative description is required — no financial quantification is mandated

Answer

Exact dollar amounts for every identified climate risk must be disclosed

Answer

Financial effects are only required for entities over $1 billion in market capitalization

Question 4

Which governance disclosure does IFRS S2 require specifically for climate oversight?

Accepted Answer

Information about board-level oversight of climate risks and management's role in assessing and managing climate risks

Answer

Names and salaries of all climate-focused executives

Answer

Board meeting minutes discussing climate agenda items

Answer

Percentage of board seats held by climate scientists

Question 5

Under IFRS S2, what additional disclosure is required for entities with climate-related targets involving Scope 3 emissions?

Accepted Answer

The entity must disclose the underlying methodology, data sources, and key assumptions used to measure Scope 3 emissions

Answer

Scope 3 targets are prohibited until measurement methodology is standardized

Answer

Only the aggregate Scope 3 reduction percentage target is required

Answer

Entities must use the Science Based Targets initiative (SBTi) methodology

Question 6

What does IFRS S2 require entities to disclose about internal carbon prices?

Accepted Answer

Whether and how the entity applies an internal carbon price and the price per tonne of CO2 equivalent used

Answer

Internal carbon prices are confidential and need not be disclosed

Answer

Only entities subject to a carbon tax must disclose internal carbon pricing

Answer

The weighted average carbon price across all business units