IFRS S1 & S2 Software
In November 2021, at COP26 in Glasgow, the IFRS Foundation announced the creation of the International Sustainability Standards Board — with an explicit ambition: to do for sustainability what IFRS has done for financial accounting.
IFRS S1 and IFRS S2, published in June 2023, are the first two outcomes of this work. They provide a common language for corporate sustainability disclosures for international financial markets.
Harnest covers all 90 IFRS S1 and S2 data points in a single environment, interoperable with your ESRS obligations.
Who is affected by IFRS S1 and S2?
IFRS S1 and S2 are aimed at companies communicating with investors in international financial markets:
- Companies listed on international markets where IFRS S1 and S2 are adopted or in the process of being adopted — Australia, Canada, Japan, Singapore, United Kingdom
- European groups subject to CSRD that also communicate with international investors requiring ISSB reporting
- Companies wishing to anticipate the gradual adoption of IFRS S1 and S2 through national adoption in their market
- Financial departments seeking to integrate sustainability risks and opportunities into their market communications
IFRS S1 and S2: Sustainability in the Language of Financial Markets
IFRS S1 Lays the Foundation — it establishes the general requirements for the disclosure of sustainability-related financial information across four dimensions inherited from the TCFD framework: governance, strategy, risk management, metrics, and targets.
IFRS S2 is the Climate-Related Standard — it specifically requires the disclosure of carbon footprint across all three scopes, climate scenario analysis, and transition plans towards a low-carbon economy.
90 Data Points Covered
IFRS S1 and S2 in a unified environment. Harnest structures your data collection around the four TCFD pillars — governance, strategy, risk, metrics — with a complete audit trail and defensible data for investors.
Structured Financial Materiality
IFRS S1 and S2 adopt a strictly financial definition of materiality. Harnest guides the identification of material sustainability risks and opportunities for your investors — and integrates them into your financial disclosures.
ESRS Interoperable, No Duplication
IFRS S1 and S2 share many data sources with ESRS. In Harnest, the data collected for your CSRD reporting directly feeds into your IFRS S1 and S2 obligations — no re-entry, no extra effort.
IFRS S1 & S2 · ESRS: Duality natively managed in Harnest
European companies operating in international markets must comply with both ESRS and IFRS S1 and S2. These two frameworks adopt different philosophies — double materiality for ESRS, financial materiality for IFRS — but share many data sources.
Harnest natively manages this duality: a single data model, multiple deliverables for your European regulators and international investors.
Ready to structure your IFRS S1 & S2 reporting?
Your international investors expect sustainability reporting in their language. Harnest has you covered — in Europe and global markets.