Hall Chadwick ESG
From Carbon Footprint to Asset Impairment: How Finance Teams Can Use IFRS S2 for Climate Risk Early Warning
With the official release of IFRS S2 “Climate-related Disclosures,” companies are no longer just expected to report on ESG initiatives—they are now required to specifically disclose the impacts of climate change on their financial statements.
Two key disclosure obligations closely tied to finance and accounting teams are: the impact of climate risk scenarios on asset impairments, and the integration of carbon costs and policy risk factors into cash flow forecasts. However, many companies have yet to realize that conducting this level of financial risk analysis hinges on having institutionalized carbon footprint data. Without credible emissions data and climate parameters, it becomes impossible to build impairment models or support the disclosures in financial statement notes, ultimately leading to trust risks and audit challenges.
Two key disclosure obligations closely tied to finance and accounting teams are: the impact of climate risk scenarios on asset impairments, and the integration of carbon costs and policy risk factors into cash flow forecasts. However, many companies have yet to realize that conducting this level of financial risk analysis hinges on having institutionalized carbon footprint data. Without credible emissions data and climate parameters, it becomes impossible to build impairment models or support the disclosures in financial statement notes, ultimately leading to trust risks and audit challenges.
- SMEs ESG
- Sustainability Accounting
- ESG Compliance
- Climate Risk
- Carbon Disclosure
- Carbon Emission Management
- Corporate Sustainability
- Integrated Financial Reporting
- Sustainability Report
- TCFD
- IFRS S2
- IFRS S1
- ESG Reporting
- Taiwan ESG Regulations 2025
- Corporate Accounting Advisory
- Finance
- Sustainability
- ESG
- Accounting
- Japanese Businesses
- Taiwanese Businesses
