IFRS S2 — Climate-related Disclosures

Effective date:

An entity is required to apply IFRS S2 for annual reporting periods beginning on or after January 1, 2024. Earlier application is permitted. If an entity applies IFRS S2 earlier, it is required to disclose that fact and apply IFRS S1 at the same time.
Pub­lished by the IASB:

June 2023
In­cluded in Part I of CPA Canada Hand­book:

Not determined yet

 

Overview

The International Sustainability Standards Board (ISSB) has published IFRS S2 ‘Climate-related Disclosures’. IFRS S2 sets out the requirements for identifying, measuring and disclosing information about climate-related risks and opportunities that is useful to primary users of general purpose financial reports in making decisions relating to providing resources to the entity. 

History of IFRS S2

The following table shows the history of this standard subsequent to the adoption of IFRS in Canada. 

Date1

Development

Comments

Included in Part I of the CPA Canada Handbook2

June 26, 2023

IFRS S2 — Climate-related Disclosures

An entity is required to apply IFRS S2 for annual reporting periods beginning on or after January 1, 2024. Earlier application is permitted. If an entity applies IFRS S2 earlier, it is required to disclose that fact and apply IFRS S1 at the same time.

The following transitional provisions are available:

  • Comparative information: An entity is not required to disclose comparative information in the first annual reporting period in which it applies IFRS S2. Greenhouse Gas Protocol: If, in the annual reporting period immediately preceding the date of initial application, the entity used a method for measuring its greenhouse gas emissions other than the ‘Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004)’, the entity is permitted to continue using that other method in the first annual reporting period in which the entity applies IFRS S2. Scope 3 greenhouse gas emissions: In the first annual reporting period in which an entity applies IFRS S2, the entity is not required to disclose its Scope 3 greenhouse gas emissions which includes, if the entity participates in asset management, commercial banking or insurance activities, the additional information about its financed emissions.
  • Information on sustainability-related risks and opportunities other than climate: In the first annual reporting period in which an entity applies IFRS S1, the entity is permitted to disclose information on only climate-related risks and opportunities (in accordance with IFRS S2) and consequently apply the requirements in IFRS S1 only insofar as they relate to the disclosure of climate-related financial information.

Not determined yet

Notes

  1. For further details of relevant developments prior to this, please refer to our Deloitte Global section.
  2. Newly issued, amended or revised IFRSs are part of Canadian GAAP only after they are approved by the Accounting Standards Board in accordance with its due process.

The above summary does not include details of consequential amendments made as the result of other projects.

Amendments under consideration

  • None

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.