What does IFRS S1 cover that IFRS S2 does not?
IFRS S1 covers every sustainability risk and opportunity that could affect a company's prospects, such as water, labour or supply chains, and sets the general rules for any sustainability report. IFRS S2 covers climate only. S2 adds the climate specifics: emissions by scope, scenario analysis, transition plans and climate metrics.
What only IFRS S1 does
- Requires disclosure on all sustainability-related risks and opportunities that could reasonably be expected to affect cash flows, access to finance or cost of capital, not just climate.
- Tells you how to find those topics: consider the SASB Standards, and you may also look at CDSB guidance, the GRI Standards or ESRS.
- Sets the core content for any topic: governance, strategy, risk management, and metrics and targets.
The general rules in S1 that S2 relies on
IFRS S2 does not repeat these, so a climate-only report still has to follow them through S1.
- Same reporting entity as the financial statements, and the same reporting period.
- Publish at the same time as the financial statements.
- Connected information: explain links between sustainability data and the financial statements.
- Materiality judged by what could influence investors' decisions.
- Comparative figures, a statement of compliance, and how to handle estimates, judgements and errors.
What only IFRS S2 does
- Scope 1, 2 and 3 greenhouse gas emissions, measured under the GHG Protocol Corporate Standard.
- Climate resilience assessed with scenario analysis.
- Climate transition plans and climate targets.
- Cross-industry climate metrics, such as assets exposed to transition and physical risk, internal carbon prices and climate-linked pay.
- Industry-based climate metrics, with guidance drawn from SASB.
The climate-first relief
In the first annual reporting period, IFRS S1 Appendix E (paragraph E5) lets a company report only on climate, applying S2, and leave other sustainability topics for later. In the second year the full S1 scope applies, though comparative figures for the non-climate topics are not required that year. So a company using the relief should know by the end of year one which non-climate topics are material.
What Senseible does here
Senseible drafts IFRS S1 and S2 outputs from your uploaded data, as self-declared drafts: the metrics part, built from document-backed Scope 1 and 2 figures from your invoices and bills. Governance, strategy and risk management narratives are written by your company.
Sources: IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, ISSB, June 2023 (ifrs.org), IFRS S2 Climate-related Disclosures, ISSB, June 2023 (ifrs.org)
Last reviewed 2026-10-16.