Implementation of IFRS S1-S2 and Other Standards
We support organizations in implementing IFRS S1–S2 and other ESG standards, strengthening transparency and the integration of sustainability into decision-making.
The Challenge for Organizations
Sustainability reporting is no longer just a compliance matter. Today, it’s a prerequisite for accessing capital.
Investors and capital markets expect sustainability information that is as rigorous and comparable as traditional financial information.
IFRS S1 and S2 have become the leading international standard for delivering it. Adoption is moving fast, with dozens of jurisdictions having already adopted them or in the process of doing so.
A common, comparable language
IFRS S1 and S2 treat sustainability information like financial information: comparable across companies and verifiable.
From voluntary to mandatory
What started as a voluntary standard is steadily becoming a regulatory requirement.
Four pillars, one framework
Governance, strategy, risk management, and metrics. The standards call for consistent evidence across all four dimensions.
A condition for accessing capital
Having information aligned with IFRS S1 and S2 makes it easier to engage with investors and lenders who already require it.
Who It’s For
Organizations that report to investors or whose business depends on access to external financing. The sectors where this challenge is most material include:
It’s also relevant for companies that, while not yet required to report, want to get ahead of capital market expectations.
Experiencia aplicada
Conoce nuestros casos de éxito para este servicio.
IFRS S1 and S2 Guide Decisions
The IFRS standards provide a comprehensive framework for building sustainability and climate change into corporate management.
Both standards are built around four pillars:
- Governance
- Strategy
- Risk management
- Metrics and targets
IFRS S1
sets out the general requirements for disclosing sustainability-related risks and opportunities
NIIF S2
specifically addresses climate-related risks and opportunities, including physical and transition risks
How We Support Your Organization
Our support covers every stage of the process:
Alignment assessment
We assess how closely you align with the requirements of IFRS S1 and IFRS S2.
Gap analysis
We identify gaps and opportunities for improvement across the framework’s four pillars.
Information gathering
We structure the information needed for disclosure processes.
Metrics and governance
We develop and strengthen metrics and governance processes.
Financial impact
We identify and assess the financial impact of sustainability and climate-related risks and opportunities.
Reporting and disclosure
We prepare reports and disclosure documents aligned with the standards.
Roadmaps
We design roadmaps to move toward progressive compliance with the requirements.
What This Service Delivers
Implementing IFRS S1 and S2 creates value beyond regulatory compliance.
Better risk management
Identify and assess physical and transition risks that can affect financial and operational performance with greater precision, strengthening long-term resilience.
Dialogue with investors
Deliver consistent, comparable information that meets the expectations of those making capital allocation decisions.
Regulatory readiness
Get ahead of upcoming regulatory obligations across jurisdictions by adopting standards before they’re required.
Stronger governance
Build sustainability and climate change into strategic decision-making and governing bodies.
Credibility and reputation
Communicate your organization’s climate management transparently and with technical rigor to clients, regulators, and communities.
Why ImplementaSur?
A connecting hub
We connect sustainability management with the financial, strategic, and regulatory decisions organizations face in Latin America.
Regional context
We work at the intersection of the operational challenges of the real economy and the expectations of the financial sector. We understand that in Latin America, timelines, regulatory contexts, and institutional capacities differ, and our approach reflects that.
Client autonomy
We work toward our clients’ autonomy: we build internal capabilities and deliver tools and models tailored to their reality; open, documented, and designed so each organization can update them and make them its own.
Tech Briefs
1. Double materiality vs. IFRS S1/S2 materiality
What has to be reported under IFRS S1/S2 isn’t double materiality but financial materiality: only the sustainability risks and opportunities that affect financial results and the ability to create value for investors. Double materiality can be a useful input to the process, but it isn’t what the market expects to see in the report.
2. What to report if you’re a holding company
A holding company’s IFRS S1/S2 report must have the same consolidation scope as its financial statements: whatever falls outside the financial perimeter covered in the Integrated Annual Report also falls outside what has to be reported under IFRS. This means being explicit and consistent about which business units are included and why.
3. Integrating climate risks at the holding level
A holding company can’t report climate risks with real traceability if its business units don’t recognize them as material in their own strategy and management. Without that bottom-up recognition, the group’s report is disconnected from concrete decisions, metrics, and targets. For example, if the Integrated Annual Report consolidates the results of units A, B, and C, the climate risks to be reported are those that are material to units A, B, and C. Por ejemplo, si mi Memoria Integrada consolida los resultados de las unidades A, B y C, los riesgos climáticos que debo reportar son aquellos materiales para las unidades A, B y C.
4. How to get your board involved
IFRS S1 and S2 require boards and senior management to actively oversee sustainability-related risks and opportunities and to offer the market a strategic perspective. In Latin America, boards are still getting to grips with IFRS S1/S2. That’s why the first step is to build the capacity to assess the financial impact of climate risk, beyond regulatory compliance. When the board sees climate risk as a business risk, it supports management decisions that go beyond checking boxes.
5. What IFRS oversight looks at: compliance or quality
IFRS S1/S2 and regulators assess whether a company discloses what the standard requires and whether that information is consistent with its risk management, metrics, and targets. They don’t rate whether the climate strategy is ambitious enough. This means a company can be fully compliant even if its climate plan is conservative, as long as it reports with internal consistency.
6. Climate risks and traditional risks (especially relevant for banks)
In financial institutions, physical and transition climate risks translate directly into credit, market, and liquidity risk: they affect borrowers’ ability to pay, the value of collateral, and portfolio stability. Integrating IFRS S2 means mapping how climate scenarios affect expected losses, provisions, and capital stress.
Contact
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