A company can flood-proof every building it owns and still be exposed. The single-source supplier whose plant sits on a river delta, the contract manufacturer in a drought-stressed basin, the port that handles most of your inbound freight: none of…
A company getting ready to report under the European Sustainability Reporting Standards (ESRS, the EU’s mandatory sustainability rulebook under the Corporate Sustainability Reporting Directive, CSRD) usually starts with the wrong question. The question is not “how do I disclose my…
You file the same physical-risk number twice If your company reports under both the global climate standard and the European one, you disclose the same physical-risk number twice, in two slightly different shapes. A lot of large companies now do…
TL;DR ESRS E1 is the one climate disclosure that makes you count physical risk, not just describe it. The requirement is ESRS E1-9 in the standard in force today and ESRS E1-11 in the amended draft EFRAG put out in…
TL;DR On ESRS E1 vs TCFD for physical risk: most of your TCFD work carries over. Your governance, your risk process, and any scenario habit you built all transfer to the European rules. The one genuine gap is the number.…
TL;DR ESRS E1-2 (Nov 2025 amended) and IRO-1 paragraph 20 (2023 binding) require disclosure of the physical-risk methodology, not scenario outputs. Scenario analysis under ESRS is voluntary (EFRAG paragraph 285), a deliberate divergence from IFRS S2 which makes scenarios mandatory.…
IFRS S2 hands you a real advantage that is easy to miss: freedom in how you present a climate disclosure. The standard is clear about what to disclose, then leaves the layout, and much of the placement, up to you.…
TL;DR Collect backwards, not forwards. Start from each IFRS S2 disclosure paragraph, write down the exact item it needs, then go and find that item. IFRS S2 data collection is a finite checklist, not an open-ended “gather everything” task. Separate…
If you are preparing an IFRS S2 climate-related disclosure for filing in the next twelve months, you are reading the same standard the early adopter cohort read for their 2024-25 filings. The text has not changed. The mandates that bound…
The standard itself, AASB S2, has one effective date. It applies to annual reporting periods beginning on or after 1 January 2025. But the Corporations Act, as amended by the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act…
