IFRS S2

In this lesson

1. 0:00 IFRS S2 climate reporting overview
2. 2:35 Physical risks acute and chronic
3. 5:37 Transition risks policy technology market reputational
4. 7:05 Climate related opportunities five categories
5. 8:41 Four disclosure pillars governance strategy risk management metrics
6. 11:15 Emissions metrics scopes one two three
7. 15:43 Holcim real world climate disclosure example
8. 17:12 Five exam pointers and common traps
9. 19:13 Integrating S1 and S2 into one report

About this lesson

This lesson covers the distinction between physical risks (acute and chronic) and transition risks (policy, technology, market, reputational), the five climate opportunities investors look for, and the four disclosure pillars—governance, strategy, risk management, and metrics and targets—all focused on climate. You'll also explore scenario analysis and how companies like Holcim integrate climate disclosures to show investors how their assets and earnings could move under different climate futures. By the end, you'll be able to classify emission sources correctly, identify climate risks and opportunities in scenarios, and understand why IFRS S2 isn't a standalone standard but rather S1 with a climate filter applied. This is essential F2 content because scope classification is the highest probability exam topic, and the management case study from May 2026 onwards can ask you to assess or recommend improvements to a company's climate disclosures. The lesson uses a cement manufacturer (Vega Cement) as a worked example to show how physical and transition risks can pull in opposite directions, and how companies navigate that trade-off through their strategy and disclosure. You'll also see how IFRS S2 integrates with S1 so companies write one connected report rather than two parallel ones, and why climate has become a financial risk category in its own right that investors price into their capital allocation decisions.

Duration: 21m