IFRS S1 and S2 readiness: read your reporting requirement by requirement
IFRS S1 and S2 are easier than they look if you read them as a checklist. Most of the structure is already in a TCFD-style report. The gap is usually numbers, owners and dates.
Take the institution readiness test
What the two standards ask
IFRS S1 sets the general requirements for disclosing sustainability-related risks and opportunities. IFRS S2 applies them to climate: governance, strategy, risk management, and metrics and targets, including Scope 1, 2 and 3 emissions and, for financial institutions, financed emissions.
A gap assessment that works
- List each S1 and S2 requirement as a row
- Map it to what you already disclose, if anything
- Score it: none, partial, met
- Give each gap an owner, a data source and a date
- Start with the requirements regulators and lenders ask about first: governance, climate risk and emissions
Where TCFD gets you
The four TCFD pillars are the skeleton of IFRS S2. A company with a TCFD-style report usually has the narrative and lacks the quantification: scenario analysis, the financial effects and the industry-based metrics.
ISSB S1 and S2 gap assessment
Your current reporting read against IFRS S1 and S2, requirement by requirement, with an owner and a date for each gap.
From EGP 90,000. How engagements run
Questions
What is the difference between IFRS S1 and S2?
IFRS S1 covers sustainability-related disclosures in general; IFRS S2 covers climate-related disclosures specifically.
Is TCFD enough for IFRS S2?
TCFD is the structure IFRS S2 builds on, but S2 asks for more quantification, including industry-based metrics and financial effects.
Where should a gap assessment start?
With governance, climate risk and emissions, the areas regulators, lenders and investors usually ask about first.
Cite this guide
Hamdy, O. (2026) "IFRS S1 and S2 readiness: read your reporting requirement by requirement". omarhamdy.com. https://omarhamdy.com/guides/ifrs-s1-s2-readiness/