Globally the IFRS Sustainability S1 & S2 is becoming the dominant standard for sustainability reporting, either by adaptation or outright implementation to regional regulatory requirements.
A key component is understanding corporate sustainability RISKS from the perspective of Physical and Transition Risks.
As a sustainability practitioner, you will be needed to analyse and quantify these risks based on your organization’s operations, capabilities and regulatory requirements.
Here’s a simplified table highlighting the differences between Physical and Transition Risks in terms of its :
➡️ definition
➡️ types
➡️ examples
➡️ objectives
➡️ financial implications
➡️ performance impact
Organizations should look at sustainability reporting as a tool to bring them into the future and navigate the difficulties when it comes to the primary sustainability pillars EOES (Economic, Operations, Environmental, Social). It should not just be something written down for requirement’s sake, without serious forethoughts and considerations on outcomes.
Reach out if you want to understand more about your organization’s sector specific physical and transition risks models in relation to IFRS sustainability reporting.
Karbon Hero collaborates with organizations throughout their journey, offering end-to-end support or assistance at critical points where it’s needed most. Our services include:
- ESG/Sustainability Framework and Roadmap Development
- Stakeholder Engagement
- Materiality Assessment
- Carbon Accounting
- Sustainability-Related Risks and Opportunities Assessment
- Climate-Related Risks and Opportunities Assessment
- Sustainability Reporting (such as Bursa Toolkit, GRI, TCFD, IFRS S1 & S2)
- Sustainability Assurance
- UN Sustainable Development Goals (SDGs) Validation
Find out how Karbon Hero’s expertise can help you and your company: support@karbonhero.com
