Data Readiness and Disclosure Support According to IFRS S1 and IFRS S2
Transform energy, emissions, resource records, and climate risks into structured and trackable data. Albuad Environmental Company helps your facility assess gaps and prepare the necessary environmental and climate inputs to support disclosures in coordination with finance, governance, and risk management teams.
What is meant by IFRS S1 and IFRS S2 disclosure readiness?
It is a review of an organization ability to collect, document, and manage the information required to prepare sustainability and climate disclosures. This includes defining boundaries, periods, data sources, responsibilities, and gaps, followed by establishing a practical roadmap to improve information and prepare report inputs.
The two standards target information on risks and opportunities that can reasonably be expected to affect cash flows, access to financing, or cost of capital. The applicability of disclosure requirements to an organization is determined by the relevant authority, market, period, and adopted framework.
Scope of Albuad Environmental Company Role: Support for data, analytics, and environmental and climate inputs. The preparation of the integrated report, financial judgments, and approval are coordinated with the relevant client teams, and any independent assurance is commissioned separately.
What is the difference between IFRS S1 and IFRS S2?
General Requirements for Sustainability-related Financial Disclosures
Regulates the disclosure of financial information related to sustainability risks and opportunities affecting the entity's prospects. Financially material topics may include environmental, social, or governance aspects depending on the nature of the business.
We support environmental aspects within this framework while identifying the information required from other departments to complete the coverage.
Climate-related Disclosures
Focuses on physical climate risks, transition risks, climate-related opportunities, and their implications for strategy and performance. Used in conjunction with general requirements in IFRS S1.
We support climate exposure analysis, emissions data, metrics, and scenarios according to the applicable scope, period, and requirements.
What does the data readiness and disclosure support service include?
We design the work around the entity's actual data and the needs of reporting teams, starting with the issues that most impact information quality and consistency.
Defining Boundaries and Period
Documenting entities, locations, and the period covered by the report, and aligning environmental data boundaries with the reporting entity in coordination with the finance team.
Gap and Evidence Assessment
Reviewing available records, methodologies, and policies, and classifying information as documented, estimated, or missing while prioritizing completion actions.
Organizing Emissions Data
Reviewing activity data, consolidation boundaries, emission factors and sources, calculation methodologies, and preparing disclosure-relevant scope requirements.
Climate Risks and Scenarios
Connecting climate exposure to assets, operations, and the value chain, and analyzing resilience at a level suited to the entity's conditions and applicable requirements.
Data Collection and Review Controls
Defining the owner of each data point, update frequency, unit, calculation method, supporting document, verification and approval procedures, and version control.
Preparing Disclosure Inputs and Drafts
Drafting environmental and climate inputs, linking them to evidence, and reviewing the consistency of figures, boundaries, and terminology with the client's reporting teams.
How do we organize sustainability and climate data?
We use a data log that details the source, owner, methodology, period, and coverage boundaries. Indicators are selected based on financial materiality, sector nature, and disclosure requirements, rather than collecting numbers that do not serve a clear decision.
| Data Domain | Examples of Inputs | Review Controls |
|---|---|---|
| Energy and Fuel. | Invoices, meters, purchases, and operational logs. | Reconciling periods, units, and locations, identifying estimates, and preventing duplication. |
| Greenhouse Gas Emissions. | Activity data, emission factors, gas sources, and boundary limits. | Documenting the methodology, factors, assumptions, classification, and reviewing calculations. |
| Water, Resources, and Waste. | Quantities, sources, operational logs, and available transport or treatment documents. | Checking completeness and comparability, and selecting indicators related to material topics. |
| Climate Risks. | Asset locations and characteristics, past incidents, and response plans. | Clarifying climate information sources, time horizons, assumptions, and analysis boundaries. |
| Targets and Improvement Plans. | Base year, scope, targets, procedures, and approved resources. | Distinguishing between achieved and targeted performance, and reviewing the consistency of comparisons and updates. |
When data is lacking, we determine the impact of the gap, the option for handling it, and the potential methodology for completing it. Estimates and their assumptions are clearly presented along with a plan to improve data quality in subsequent reporting cycles.
Supporting the four disclosure pillars
We organize technical inputs within a structure that helps client teams link environmental and climate data to business management.
Governance
Consolidating matters related to oversight, responsibilities, and information approval pathways in coordination with relevant stakeholders.
Strategy
Analyzing the linkage of risks and opportunities to business, assets, time horizons, and adaptation and transition options.
Risk management
Documenting methods for identifying, assessing, prioritizing, and monitoring risks, and linking them to existing risk management.
Metrics and Targets
Organizing metrics, calculations, baseline years, targets, the method for measuring progress, and supporting evidence.
Emissions and Accounting Boundaries
We support organizing data for Scope 1 direct emissions, Scope 2 associated with purchased energy, and Scope 3 associated with the value chain, according to applicable boundaries, methodologies, and requirements.
The depth of accounting, data sources, the mechanism for handling estimates, and applicable transitional exemptions are determined after reviewing the entity's circumstances and the reporting period. We clarify the difference between measured activity data, calculations, and estimates.
Scenarios and Climate Resilience
The analysis may include testing asset exposure to heat, floods, or changing water availability, and comparing operational or investment responses. Transition risks such as changing technology or customer and market requirements can also be studied.
We choose a qualitative or quantitative approach, or a combination of both, to suit exposure, capabilities, resources, and relevant requirements. Assumptions are documented, and the financial impact assessment is coordinated with the finance team.
Outputs of IFRS S1 and IFRS S2 Service
The scope of work may include the following outputs depending on the entity's readiness stage:
- Gap Report: Status of environmental and climate requirements, available evidence, and priorities.
- Data Register: Sources, staff, periods, units, calculation methods, and controls.
- Calculation package: Emission inputs and agreed-upon indicators with methodology and assumptions documentation.
- Risk and opportunity register: Climate exposures, affected assets, and existing responses.
- Scenario analysis: When included in the assignment, with clarification of the analysis boundaries and results.
- Drafts and improvement plan: Environmental and climate disclosure inputs, completion procedures, and responsibilities.
What do we need from your facility?
- Report objective, period, covered entities, and locations.
- Available energy, fuel, resource, and emission records.
- Policies, objectives, and previous sustainability reports if any.
- List of assets, risks, and relevant operational plans.
- A contact person and representatives from finance, governance, operations, and risk management.
How do we determine duration and cost?
We review the number of entities and locations, data volume and quality, required period, scope of inventory and scenarios, and disclosure drafts. Then we provide a proposal outlining the phases, deliverables, and responsibilities of both parties.
You can start with a limited gap assessment, then move to data organization, analysis, and drafting inputs according to priority and the agreed schedule.
Frequently asked questions about sustainability disclosure readiness
Is an ISO certificate or environmental report sufficient to apply IFRS S1 and IFRS S2?
They can provide useful evidence and data. Disclosure readiness requires reviewing information coverage, boundaries, financial significance, and its connection to risks, strategy, and indicators. Therefore, we evaluate gaps rather than assuming requirements are met by having a single document.
Does the service cover all IFRS S1 topics?
Our scope is determined by the agreed-upon environmental and climate aspects. A complete report requires input from departments responsible for other financially material topics, working alongside the client's reporting, governance, and finance teams.
Can we start before the data is complete?
Yes. Readiness assessment begins by identifying what is available and what is missing, then developing a completion plan. When estimates are used, we clarify their sources, assumptions, and limitations, and determine what is needed to improve them.
Must an advanced quantitative climate model be implemented in all cases?
The scenario analysis approach is determined based on the entity's circumstances, risk exposure, capabilities, resources, and applicable requirements. A qualitative approach may be appropriate in certain cases, while clarifying the methodology, assumptions, and results.
Does the service include independent assurance or report approval?
The service includes technical support and review of data and inputs as per the contract. The entity management approves its report, and independent assurance or regulatory review work and their responsibilities are determined in a separate engagement with the competent authority.
How do you handle financial materiality and financial impacts?
We support identifying the connection channels between environmental and climate issues and the business, and provide available technical evidence. Judgments on financial materiality, estimates, and consistency with financial information are reviewed in coordination with the client's finance team and reporting officers.
Start with a clear assessment of your entity's data readiness
Share your disclosure goal, required period, and business activity type so we can determine the gaps, priorities, and appropriate environmental and climate support scope.