Client Alert: IFRS S2 Section Update

/ KERAMIDA Inc./
 

Key 2025 Updates: Proposed Additions to IFRS S2 Section

The International Sustainability Standards Board (ISSB) has issued significant 2025 proposals to expand and refine IFRS S2 climate disclosure requirements. These updates could affect Scope 3 reporting boundaries, industry-specific guidance, and climate transition plan disclosures. Companies should review the changes now to prepare for potential adoption as early as 2026.

In April 2025, the ISSB released a proposed update that would:

  • Allow companies to exclude certain Scope 3 (value chain) emissions from their climate disclosures — specifically emissions related to:

    • Derivatives

    • Facilitated transactions

    • Insurance activities

In July 2025, the ISSB published a second proposal to:

  • Update the industry-specific guidance that companies use with IFRS S2

  • Align these industry disclosures with updated sustainability metrics used in financial reporting

  • Apply changes across 46 industries

  • Accept public comments until 30 November 2025

  • Target a final release in 2026 or 2027, with early use allowed

In June 2025, the IFRS Foundation published support tools to help companies prepare:

  • Free e-learning modules to explain how to apply IFRS S1 and S2

  • New guidance for reporting climate transition plans under IFRS S2

KERAMIDA is an IFRS Consultant Content Programme Member. Learn more about our IFRS S2 support services.

To get started today with a GHG Inventory, Climate Scenario Analysis, or IFRS disclosure preparation, contact us to speak with one of our IFRS reporting specialists.

Contact

Faythe Missick, MA, MSc
Senior Manager, Sustainability
KERAMIDA Inc.

Contact Faythe at fmissick@keramida.com