Investor Presentaiton
Comparing Standards IFRS S2 and ESRS E1
All IFRS S2 disclosures are covered in ESRS E1 in relation to the core pillars: Governance, Strategy, Risk management, Metrics and
targets. However, IFRS S2 has some differences and additions:
Governance
Strategy
Risk management
Metrics and targets
ESRS identifies three levels of targets: general
climate-related targets, GHG emission reduction
targets, net zero targets and other neutrality
claims.
Fully covered;
no significant
differences
IFRS S2 requires the disclosure
of the effects of gross climate-related
risks within the next year and of net
climate-related risks over time whereas
ESRS E1 requires the disclosure of the
potential financial effects from material
gross climate-related risks over time
The future potential financial effects
from climate-related risks cover gross
risks (before mitigation/adaptation
policies and actions) in ESRS E1 instead
of net risks as in IFRS S2.
ESRS has more detailed
application guidance for
physical and transition
risks identification and
assessment with the
provision of detailed
climate scenarios
In IFRS S2 entity disclosing requirement shall refer
to and consider the applicability of cross-industry
metric categories and industry-based metrics
defined in the Industry-based Guidance.
In ESRS target values aligned with 2030 and 2050
and preferably set over five years rolling periods.
IFRS S2 states that the entity shall disclose the
quantitative and qualitative climate-related targets
it has set to monitor progress towards achieving
its strategic goals, and targets to meet by law or
regulation.
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9 August 2023
How to prepare a report in compliance with IFRS S1/S2?
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