The IFRS Foundation has published a new guidance document outlining the disclosures related to an entity’s climate-related transition.
It includes transition plans, under IFRS S2, as part of its efforts to support the implementation of IFRS Sustainability Disclosure Standards (ISSB Standards).
The guidance builds on materials developed by the Transition Plan Taskforce (TPT), for which the IFRS Foundation assumed responsibility in 2024.
It aims to assist entities applying IFRS S2 Climate-related Disclosures by enabling them to provide high-quality information about their climate-related transition, covering both the mitigation and adaptation of efforts.
Developed with insights from stakeholder roundtables held earlier in 2025, the guidance adapts TPT materials for global applicability while maintaining compatibility with the ISSB global baseline. In addition it focuses on disclosures related to climate-related risks and opportunities that impact an entity’s prospects.
Although IFRS S2 does not mandate a transition plan, it requires entities to disclose material information about the sustainability-related risks and opportunities that could affect their prospects, including the details of their climate-related transition.
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By GlobalDataThe guidance defines an entity’s climate-related transition as a process involving strategies, targets, actions, or resources to address climate-related risks and opportunities, such as transitioning to a lower-carbon or climate-resilient economy.
The document also provides much needed clarity on the disclosures required under IFRS S2 for entities with such strategies.
It complements existing jurisdictional materials or recommendations on creating transition plans and their content.
The IFRS Foundation encourages jurisdictions adopting or using ISSB Standards to leverage this guidance, in order to ensure high-quality, comparable information about transition plans.
The document does not alter or add to the requirements of IFRS S2.
The Foundation will monitor disclosures made by entities applying IFRS S2 and assess the need for further enhancements to the application guidance, with any changes subject to consultation per its due process.
