The IFRS S2 Climate-related Disclosures standard becomes the global baseline for institutional climate reporting — and the Thai SEC is moving toward mandatory adoption for SET-listed companies from 2026 reporting cycles forward. Othello’s bench holds IFRS Foundation S1/S2 certification and the methodology stack to deliver the disclosure end-to-end. การเปิดเผยข้อมูลด้านสภาพภูมิอากาศ IFRS S2
The IFRS S2 standard is built on four disclosure pillars — the same core architecture as the TCFD recommendations, but with prescriptive ISSB requirements layered on top. Each pillar carries specific disclosure expectations that Othello’s bench delivers end-to-end, in lockstep with bilingual TH-EN reporting.
Disclosure of the governance processes, controls, and procedures the entity uses to monitor and manage climate-related risks and opportunities. This includes board oversight, management’s role, and how climate considerations are integrated into business strategy and decision-making.
The disclosure must be specific enough that users of the financial statements can evaluate how climate matters are escalated to the highest governance level — and how the entity’s governance structure supports the management of climate risks and opportunities.
The most expansive pillar. Disclosure of the entity’s strategy for managing climate-related risks and opportunities — including the climate-related risks and opportunities the entity has identified, the effects on business model and value chain, and the strategy’s resilience to climate-related changes, developments, and uncertainties.
The defining IFRS S2 requirement: climate resilience must be tested via scenario analysis. Including disclosure of the time horizons used, the climate-related scenarios applied, the assumptions made, and how the analysis is used in strategy.
Disclosure of the processes the entity uses to identify, assess, prioritize, and monitor climate-related risks and opportunities — and how these processes are integrated into the entity’s overall enterprise risk management (ERM) framework.
The pillar bridges the abstract (climate strategy) and the operational (metrics). It’s where the “who, when, how” of climate risk management gets documented — and where rating agencies, lenders, and assurance providers look for evidence of substantive process versus disclosure performance.
The most prescriptive pillar. Disclosure of the metrics and targets used to manage climate-related risks and opportunities — across cross-industry, industry-specific, and entity-defined categories. This pillar is where IFRS S2 goes beyond TCFD in specificity, particularly around GHG accounting requirements.
IFRS S2 mandates Scope 1, 2, and 3 GHG emissions disclosure per the GHG Protocol — including the seven Scope 3 categories where material, financed emissions for financial institutions, and specific industry-based metrics from the SASB / ISSB industry application guidance.
The IFRS S2 standard fully incorporates the TCFD recommendations — but layers prescriptive ISSB requirements on top. For Thai SET-listed corporates already reporting under TCFD, the migration path is incremental; the gaps are specific. Below: where TCFD ends and IFRS S2 begins.
From readiness assessment through full IFRS S2 disclosure preparation, GHG inventory, scenario analysis, transition planning, and bilingual TH-EN delivery integrated with the 56-1 One Report. Each scope can be engaged independently or as part of an integrated 2026-readiness programme.
Gap analysis against IFRS S2 disclosure requirements. Current-state TCFD/SET ESG disclosure vs. 2026 expected state. Output: prioritized closure roadmap, effort estimate, timeline.
Pillar 1 drafting — board oversight architecture, committee mandates, reporting cadence, management responsibility, integration with existing 56-1 governance section.
Pillar 2 deliverables — climate risk & opportunity register, time horizon definition, scenario analysis (1.5°C / 2°C / 4°C), business model effects, financial impact narrative.
Pillar 3 disclosure — climate risk identification methodology, assessment criteria, prioritization framework, ERM integration mapping, monitoring cadence. ISO 14091-aligned.
Full Scope 1, 2, and 3 GHG inventory per GHG Protocol — ISO 14064 Lead Auditor in-house, TGO CFO/CFP auditor credentials. Audit-ready inventory + uncertainty assessment.
Cross-industry metrics, industry-based metrics (SASB / ISSB), climate-related targets (SBTi-aligned interim & net-zero), internal carbon pricing structure, capital deployment disclosure.
The IFRS S2 deliverable in TH and EN bilingual format — integrated with the 56-1 One Report, ratings-agency submissions (FTSE, MSCI, CDP), stakeholder communications. ISO 17100 workflow.
AA1000AS Type 1 + Type 2 assurance readiness — bench holds ACSAP credential. Document trail preparation, methodology defensibility, control documentation for third-party assurance.
IFRS S2 mandates full Scope 1, 2, and 3 GHG disclosure under the GHG Protocol — a substantial step up from TCFD’s softer “Scope 3 if appropriate” language. Scope 3 is where most Thai SET-listed companies face the largest gap; it’s also where the bench’s ISO 14064 Lead Auditor and TGO CFO/CFP credentials matter most.
Direct GHG emissions from owned or controlled sources — combustion in boilers, furnaces, vehicles; chemical production processes; fugitive emissions. The most data-available category for most entities.
Typically the easiest category to inventory. Activity data is generally available from operations & maintenance records; emission factors from TGO / IPCC / national grid factors.
Indirect emissions from purchased electricity, steam, heating, and cooling consumed by the entity. Reported under two methods — location-based and market-based per the GHG Protocol Scope 2 Guidance.
Location-based uses average grid emission factors (Thailand: TGO grid factor). Market-based uses contractual instruments (renewable PPAs, I-RECs, green tariffs) — the method matters for renewable energy claims.
The “everything else” scope — all other indirect emissions in the value chain, organized into 15 distinct categories across upstream (purchased goods, capital goods, fuel-related, transportation, waste, business travel, employee commuting, leased assets) and downstream (transportation, processing, use of sold products, end-of-life, leased assets, franchises, investments).
For most Thai SET-listed companies, Scope 3 is often 5–10× larger than Scope 1+2 combined — but the disclosure gap here is largest. IFRS S2 requires disclosure of which categories were measured, why others were excluded, and the methodology used.
IFRS S2 mandates climate resilience assessment via scenario analysis — and disclosure of the scenarios used, the time horizons applied, and the assumptions made. Three reference scenarios cover the policy outcome space: 1.5°C alignment (Paris-aligned), 2°C / NDC trajectory (current policies), and 4°C+ unmitigated (high physical risk). Each scenario tests different risks and opportunities.
Reference scenario for Paris Agreement alignment. Tests resilience to aggressive transition risk — rapid carbon pricing, fossil-fuel phase-out, electrification, regulatory acceleration. Lowest physical risk; highest transition risk.
Reference scenario for current announced policies. Tests resilience to partial transition with growing physical risk. Carbon pricing introduced but uneven; some sectors transition, others lag. Most common rating-agency reference case.
Reference scenario for failed mitigation. Tests resilience to high physical climate risk — sea-level rise, extreme weather frequency, drought, supply-chain disruption. Lowest transition risk (no aggressive policy); highest physical risk.
A full IFRS S2 readiness programme runs 12–20 weeks depending on scope and current-state maturity. The PM scopes the engagement against the client’s 56-1 reporting cycle so the IFRS S2 disclosure lands in time for the integrated annual report.
Mutual NDA from first email. Scoping call. Quote within 1 business hour against the 6 scope tiers above.
Current-state vs. IFRS S2 disclosure. Gap report by pillar with prioritized closure roadmap.
Scope 1, 2, 3 inventory build. ISO 14064 Lead Auditor in-house. TGO-aligned.
Scenario analysis run. Risk register. Time horizons. Financial impact narrative.
Full 4-pillar IFRS S2 disclosure drafted. Bilingual TH-EN. Integrated with 56-1.
Document trail. Methodology defensibility. AA1000AS readiness · ratings submission.
IFRS S2 is the convergence of multiple frameworks — TCFD architecture, GHG Protocol Scope 1/2/3, SASB industry metrics, SBTi targets, IPCC scenarios, ISO 14064 verification. Comparable Bangkok firms typically hold one or two of these credentials. Othello holds them all in-house.
Direct certification from the IFRS Foundation — the highest-level methodology training available for the ISSB standards. Not a third-party trainer endorsement; the standard-setter’s own programme.
The same bench preparing the GHG inventory holds ISO 14064 Lead Auditor credentials — verification-grade methodology rigour built into the inventory from the start, not bolted on at assurance stage.
Carbon Footprint Organization & Product Auditor status from TGO — Thailand’s national GHG authority. Auditor-level credential, the highest tier for Thai entity carbon-footprint validation.
Bench holds AA1000AS ACSAP credential — the assurance gold standard. Means IFRS S2 disclosure is delivered already structured for the third-party AA1000AS assurance engagement that ratings agencies and rating-conscious investors expect.
Advisory work and bilingual TH-EN disclosure delivered by the same bench, same workflow, same NDA. No third-party translation firm in the loop, no terminology drift between advisory output and the published 56-1 disclosure.
IFRS S2 is Othello’s 2026 specialty practice — the methodology stack, the bench credentials, the workflow integration with 56-1 reporting cycles. Engagement scoping calibrated against the Thai SEC mandate timeline.
Outcomes across IFRS S2 / TCFD engagements and adjacent climate-disclosure work — FTSE Russell rating outcomes, AA1000AS engagements, national-scale GHG platforms, regional thought leadership. Engagement details under mutual NDA at procurement stage.
Distinguished FTSE Russell ESG Score secured under LSEG global methodology for a Thai SET-listed healthcare entity — the first FTSE result after the SET transition announcement. Bench led climate-related disclosure (TCFD/IFRS S2-aligned), GHG inventory validation, framework alignment, data submission. The disclosure rigour drove the rating.
National carbon footprint platform covering 904 Thai public hospitals under Ministry of Public Health. Methodological development, sensitivity analysis, standardised data collection — the methodology stack mapped to GHG Protocol & IFRS S2 baseline expectations.
Platform-feature contributions to the carbon tool adopted by 100+ SET-listed companies and financial institutions. Translated requirements into features for data collection, ESG disclosure efficiency, and IFRS S1/S2 readiness.
Invited speaker at regional carbon crediting forum co-hosted by Malaysia’s Ministry of Natural Resources, World Bank, Permian Global. Session on carbon crediting through development, crediting, financing, monitoring, validation.
Ten questions Othello answers before the proposal arrives — calibrated for SET-listed corporates preparing for the 2026 IFRS S2 disclosure mandate.
The Thai SEC has signalled mandatory IFRS S2-aligned climate disclosure for SET-listed companies from 2026 reporting cycles, with phase-in by company size and sector. The current SET ESG framework is also transitioning to FTSE Russell methodology — which itself scores against IFRS S2-aligned disclosure. Whether by SEC mandate, SET methodology, or ratings-agency pressure, the disclosure expectation arrives in 2026 either way. Engagement scoping should assume the 2026 cycle.
Typically 20–30% additional disclosure versus a complete TCFD report. The largest gaps cluster around: (a) Scope 3 GHG inventory across all 15 material categories — most TCFD reports have only partial Scope 3; (b) mandatory scenario analysis with disclosed assumptions and time horizons — TCFD allowed flexibility, IFRS S2 prescribes; (c) industry-based metrics from SASB / ISSB application guidance — entirely new layer for most reporters; (d) concurrent timing with financial statements — IFRS S2 disclosure must arrive in the same reporting period as the financials.
12–20 weeks for a complete IFRS S2 readiness programme, depending on current-state maturity. The bench scopes engagements against the client’s 56-1 One Report cycle — the IFRS S2 disclosure typically integrates into the 56-1’s climate/sustainability section, so the timeline aligns with the annual reporting deadline. Starting 6+ months before the 56-1 target date is standard.
IFRS S2 requires Scope 3 disclosure “where material” — meaning the entity must (a) assess all 15 categories for materiality, (b) measure the material ones, and (c) disclose why other categories were excluded. For most SET-listed corporates, 5–8 categories are material; the rest can be documented out. But the assessment-and-justification process must be evidenced — that’s part of the disclosure. Othello’s bench runs the materiality scan first, then scopes the inventory effort accordingly.
IFRS S2 directs entities to “refer to and consider the applicability of” the SASB Standards and ISSB industry application guidance for industry-specific metrics. Practically, this means SET-listed corporates need to identify the SASB sector that applies (most have one or two), map the relevant industry metrics, and disclose against them — or justify deviation. The metrics are sector-specific and often touch product lifecycle, supply chain, and operational efficiency. Othello’s bench maps the applicable SASB sector and prepares the metric disclosure.
Bench holds AA1000AS ACSAP credential — meaning the team has assurance-practitioner training. For independence reasons, the same bench that prepares the disclosure does not also conduct the third-party assurance — but the disclosure is structured for assurance-readiness, with audit-trail documentation, methodology justification, and control evidence prepared in parallel. The actual AA1000AS assurance is engaged separately with the client’s chosen assurance provider; Othello’s deliverable goes into that engagement with minimal preparation work.
Yes — that’s the most common starting position. Othello uses three reference scenarios (1.5°C IEA NZE / 2°C IEA APS / 4°C IPCC RCP 8.5) with sector-specific overlays. The methodology tests the entity’s strategy against physical risk (sea-level, extreme weather, drought) and transition risk (carbon pricing, fossil-fuel phase-out, regulatory acceleration). Output is a defensible scenario narrative for IFRS S2 § 22 — with disclosed assumptions, time horizons, and risk/opportunity implications.
IFRS S2 disclosure typically integrates as a dedicated climate section within the 56-1 One Report’s sustainability disclosures — with cross-references to the governance section (board oversight), strategy section (business model), and risk factors (climate risks). The integration matters because the SEC reviews 56-1 as a single document; the IFRS S2 sections cannot be inconsistent with the financial-statement narrative or the governance disclosures elsewhere. Othello’s bench ensures cross-section terminology lock and narrative consistency.
Yes — the same in-house bench that delivers the advisory work delivers the bilingual disclosure. ISO 17100 TEP workflow, no third-party translation vendor, no terminology drift. The bilingual IFRS S2 disclosure is calibrated for both Thai SEC submission and FTSE Russell / MSCI / CDP rating-agency consumption — the latter typically reading the English version while the former requires Thai for the official 56-1 filing.
Fixed-fee per scope tier — engagement is broken into the 8 service scopes (readiness, governance, strategy/scenario, risk management, GHG inventory, metrics & targets, bilingual delivery, assurance readiness). Each can be engaged independently or as an integrated programme. Quote within 1 business hour includes the scope-tier breakdown, deliverable timeline against the 56-1 reporting cycle, and pricing under mutual NDA. Repeat-cycle clients (annual IFRS S2 update) see compounding TM-leveraged cost reduction on the bilingual delivery component.
SET-listed corporates preparing for the 2026 IFRS S2 disclosure cycle — send the current 56-1 climate section, the SET ESG response, the current GHG inventory if any. Within one business hour you’ll have a gap-scoped quote, mutual NDA, and a clear path to disclosure-ready by your 56-1 deadline. No discovery call about the discovery call.