The International Financial Reporting Standards (IFRS) S1 & S2 set a global benchmark for sustainability and climate-related financial disclosures, helping businesses provide transparent, comparable, and decision-useful ESG information to investors. These standards, developed by the International Sustainability Standards Board (ISSB), align with TCFD (Task Force on Climate-related Financial Disclosures) and enhance corporate sustainability reporting.
At Clenergize, we assist companies in IFRS S1 & S2 compliance, ensuring accurate, standardized, and investment-grade ESG disclosures. Our services help organizations align with global sustainability reporting frameworks, financial risk assessments, and climate governance best practices.
Understanding IFRS S1 & S2
IFRS S1 – General Requirements for Sustainability-Related Financial Disclosures
Provides a consistent framework for sustainability reporting across industries
Requires disclosure of material ESG risks & opportunities impacting financial performance
Alignment with Global ESG Standards – CSRD integrates with GRI, SASB, TCFD, ISSB, and EU Taxonomy regulations
Aligns with GRI, SASB, TCFD, and CDP for global reporting consistency
IFRS S2 – Climate-Related Disclosures
Specifically addresses climate risk reporting under TCFD-aligned principles
Mandates disclosure of Scope 1, Scope 2, and Scope 3 GHG emissions
Focuses on climate risk assessment, decarbonization strategies, and Net Zero planning
Both standards enhance corporate accountability, allowing investors to evaluate climate risks, sustainability performance, and ESG-aligned financial decisions
Who Needs to Comply with IFRS S1 & S2
Publicly listed companies & large private corporations operating in sustainability-focused markets
Businesses with ESG investment exposure including sustainability-linked loans, green bonds, and impact investments
Financial institutions, insurers, and asset managers integrating ESG into risk management frameworks
Companies subject to regulatory ESG disclosures such as CSRD, SEC climate disclosures, and ISSB reporting mandates
Clenergize’s IFRS S1 & S2 Compliance Services
1. IFRS S1 & S2 Readiness Assessments
Evaluate current sustainability reporting frameworks against IFRS S1 & S2 standards
Identify gaps in ESG data collection, financial risk assessment, and climate disclosures
Develop an action plan for full IFRS compliance and investor alignment
2. Sustainability Data Collection & Reporting
Establish a structured ESG data framework for financial materiality & risk-based disclosures
Ensure your business is IFRS S1 & S2 ready and meets global sustainability disclosure requirements. Contact Clenergize today for expert ESG reporting, risk assessment, and financial sustainability compliance
IFRS S1 & S2 Report Development & Assurance Support
1000MW
Solar Projects
100
ESG & Sustainability Projects
50
Energy Efficiency Projects
Frequently Asked Questions
ESG is the integration of sustainability pillars within corporates involving monitoring and measuring corporate impacts on global, national, and local community aspects including Environmental, Social and Governance impacts.
To comply with national agendas and targets. To align with major supplier requirements To position against Competitors To cater to the rise in consumer awareness
It takes from 3-4 moths to develop and build a company's Sustainability Strategy and Framework and create action plans to meet their goals.
Countries in the GCC and MENA region have announced multiple agendas and standards to ensure compliance and alignment to Sustainable Development Goals. Standards include GRI, SASB, IR, LEED, etc.
Some of the most used ESG strategies including Net Zero Carbon, Circular Economy and Waste Management, Sustainable Procurement, Sustainable Investments etc.
Green Financing and Sustainability Linked Loans are a major benefit that banks offer to companies that have a proven track record of implementing Sustainability activities and strategies in their business operations.
