IFRS S1/S2 Readiness Check

The board (or a named committee) oversees sustainability-related risks and opportunities, with documented terms of reference

Management’s role in assessing and managing these risks is defined and disclosed (responsibilities, reporting lines)

Climate specifically sits in governance, including how the board maintains skills and access to expertise

Sustainability-related risks and opportunities are identified and assessed for materiality over short, medium and long term

Current and anticipated financial effects are analysed (cash flows, cost of capital, access to capital)

A climate scenario analysis has been run, including a transition scenario consistent with 1.5°C / well-below 2°C

A climate transition plan exists with interim milestones and resourcing

The strategy’s resilience to physical and transition climate risk has been assessed and disclosed

Processes for identifying, assessing and prioritising sustainability-related risks are documented

Climate risks have their own identified process (physical hazard + transition policy/market/tech)

These processes are integrated into overall enterprise risk management

Scope 1 and Scope 2 GHG emissions are measured (the core S2 metric)

Scope 3 GHG emissions are measured, or the exclusion is justified

Industry-based metrics (IFRS industry guidance) are tracked

Targets have base year, scope and timeline, and progress is monitored

An internal carbon price is used in investment decisions, or its absence is explained

Executive remuneration is linked to sustainability or climate targets

Connections to the financial statements are considered (assumptions, estimates, impairments)