Objective
The goal of IFRS S2 (Climate-related Disclosures) is to make an organization share information about its climate-related risks and opportunities. This information helps the main users of general purpose financial reports make decisions about giving resources to the organization.
General purpose financial reports give financial information about an organization to help key users make decisions about giving resources to that organization. These reports include, but are not limited to, the organization’s financial statements and reports about sustainability-related financial issues.
Primary users of general purpose financial reports include existing and potential investors, lenders and other creditors. General purpose financial reports help users make decisions on:
buying, selling, or keeping shares or debt;
giving or selling loans or other types of credit; or
using voting rights or other ways to influence how the organization is managed, especially how it uses its resources.
This standard requires an organization to share information about climate-related risks and opportunities that could reasonably be expected to affect the organization’s cash flows, access to finance or cost of capital over the short, medium or long term.