{"id":24394,"date":"2025-03-26T00:00:00","date_gmt":"2025-03-25T23:00:00","guid":{"rendered":"https:\/\/www.labrador-transparency.com\/?p=24394"},"modified":"2026-06-05T15:30:26","modified_gmt":"2026-06-05T14:30:26","slug":"are-you-ready-to-transition-from-tcfd-to-ifrs-s2","status":"publish","type":"post","link":"https:\/\/www.labrador-transparency.com\/en\/blog\/are-you-ready-to-transition-from-tcfd-to-ifrs-s2\/","title":{"rendered":"Are you ready to transition from TCFD to IFRS S2?"},"content":{"rendered":"\t\t
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New or Additional Requirements in IFRS S2 Compared to TCFD Recommendations<\/span><\/h2>
Governance<\/b><\/td>
  • How the body with ultimate oversight over climate ensures that the appropriate skills and competencies are available to oversee strategies designed to respond to climate-related risks and opportunities<\/li>
  • Climate-related remuneration for executives and management<\/li><\/ul><\/td><\/tr>
Strategy<\/b><\/td>
  • Current and anticipated adaptation and mitigation efforts, including how companies are currently resourcing or plan to resource responses to climate-related risks and opportunities: e.g., effects on financial position and performance and cash flows for reporting period and over short, medium and long-term; changes to production processes, products, and workforce; etc.<\/li>
  • Climate resilience details, including information on significant areas of uncertainty for strategy resilience<\/li>
  • Financial information on carbon prices and capital deployment, including the amount of capital expenditure, financing or investment deployed toward climate-related risks and opportunities<\/li>
  • Climate transition plans (if applicable), including plans to achieve climate-related targets and the use of carbon offsets<\/li><\/ul><\/td><\/tr>
Risk Management<\/b><\/td>
  • More detail on climate scenario analyses conducted, including:
    • How the scenario analysis was carried out, including data sources, scope of operations covered, which climate-related scenarios were used and why (including which align with the latest international agreement on climate change), time horizons, and key assumption details (climate-related policies in jurisdictions in which a company operates, macroeconomic trends, national or regional variables, energy usage and mix, and technology developments)<\/li>
    • Detail on how risks (physical and transition) and opportunities are integrated into overall risk management processes and structures<\/li><\/ul><\/li>
    • Amount and % of assets or business activities vulnerable to physical risks<\/li>
    • Amount and % of assets or business activities vulnerable to transition risks<\/li>
    • Amount and % of assets or business aligned with climate-related opportunities<\/li>
    • Amount of capital expenditure, financing or investment deployed towards climate-related risks and opportunities<\/li>
    • Note<\/i>: IFRS S2 requires that companies at a minimum update their climate-related scenario analysis in line with their strategic planning cycle. However, an assessment of the company\u2019s resilience is required to be carried out annually to reflect updated insight into the implications of climate uncertainty for the company\u2019s business model and strategy.<\/li><\/ul><\/td><\/tr>
Metrics and Targets<\/b><\/td>