ED/2022/S2March2022ExposureDraftIFRS®SustainabilityDisclosureStandardInternationalSustainabilityStandardsBoardIllustrativeGuidanceon[Draft]IFRSS2Climate-relatedDisclosuresCommentstobereceivedby29July2022ExposureDraftIllustrativeGuidanceClimate-relatedDisclosuresCommentstobereceivedby29July2022ThisIllustrativeGuidanceaccompaniestheED/2022/S2Climate-relatedDisclosures(publishedMarch2022;seeseparatebooklet).ItispublishedbytheInternationalSustainabilityStandardsBoard(ISSB)forcommentonly.Commentsneedtobereceivedby29July2022andshouldbesubmittedbyemailtocommentletters@ifrs.orgoronlineathttps://www.ifrs.org/projects/open-for-comment/.Allcommentswillbeonthepublicrecordandpostedonourwebsiteatwww.ifrs.orgunlesstherespondentrequestsconfidentiality.Suchrequestswillnotnormallybegrantedunlesssupportedbyagoodreason,forexample,commercialconfidence.Pleaseseeourwebsitefordetailsonthispolicyandonhowweuseyourpersonaldata.Ifyouwouldliketorequestconfidentiality,pleasecontactusatcommentletters@ifrs.orgbeforesubmittingyourletter.Disclaimer:Totheextentpermittedbyapplicablelaw,theISSBandtheIFRSFoundation(Foundation)expresslydisclaimallliabilityhowsoeverarisingfromthispublicationoranytranslationthereofwhetherincontract,tortorotherwisetoanypersoninrespectofanyclaimsorlossesofanynatureincludingdirect,indirect,incidentalorconsequentialloss,punitivedamages,penaltiesorcosts.Informationcontainedinthispublicationdoesnotconstituteadviceandshouldnotbesubstitutedfortheservicesofanappropriatelyqualifiedprofessional.ISBNforthispart:978-1-914113-64-2ISBNforcompletepublication(fourparts):978-1-914113-57-4©2022IFRSFoundationAllrightsreserved.Reproductionanduserightsarestrictlylimited.PleasecontacttheFoundationforfurtherdetailsatpermissions@ifrs.org.CopiesofISSBpublicationsmaybeorderedfromtheFoundationbyemailingcustomerservices@ifrs.orgorvisitingourshopathttps://shop.ifrs.org.TheFoundationhastrademarksregisteredaroundtheworld(Marks)including‘IAS®’,‘IASB®’,theIASB®logo,‘IFRIC®’,‘IFRS®’,theIFRS®logo,‘IFRSforSMEs®’,theIFRSforSMEs®logo,‘InternationalAccountingStandards®’,‘InternationalFinancialReportingStandards®’,the‘HexagonDevice’,‘NIIF®’and‘SIC®’.FurtherdetailsoftheFoundation’sMarksareavailablefromtheFoundationonrequest.TheFoundationisanot-for-profitcorporationundertheGeneralCorporationLawoftheStateofDelaware,USAandoperatesinEnglandandWalesasanoverseascompany(Companynumber:FC023235)withitsprincipalofficeintheColumbusBuilding,7WestferryCircus,CanaryWharf,London,E144HD.CONTENTSfrompageILLUSTRATIVEGUIDANCE4ILLUSTRATIVEGUIDANCEONCLIMATE-RELATEDDISCLOSURES©IFRSFoundation3IllustrativeguidanceThisguidanceaccompanies,butisnotpartof,[draft]IFRSS2.Itillustratesaspectsof[draft]IFRSS2butisnotintendedtoprovideaninterpretation.Paragraph21of[draft]IFRSS2statesthat‘anentityshalldiscloseinformationrelevanttothesecross-industrymetriccategories’.Theseexamplesprovideanillustrationofsuchinformation.MetriccategoryUnitofmeasureExamplemetricsTransitionrisksamountandpercentage•volumeofrealestatecollateralshighlyexposedtotransitionrisk•concentrationofcreditexposuretocarbon-relatedassets•percentofrevenuefromcoalmining•percentofrevenuepassengerkilometresnotcoveredbyCarbonOffsettingandReductionSchemeforInternationalAviationPhysicalrisksamountandpercentage•numberandvalueofmortgageloansin100-yearfloodzones•wastewatertreatmentcapacitylocatedin100-yearfloodzones•revenueassociatedwithwaterwithdrawnandconsumedinregionsofhighorextremelyhighbaselinewaterstress•proportionofproperty,infrastructureorotheralternativeassetportfoliosinanareasubjecttoflooding,heatstressorwaterstress•proportionofrealassetsexposedtoclimate-relatedhazardscontinued...IG1EXPOSUREDRAFT—MARCH20224©IFRSFoundation...continuedMetriccategoryUnitofmeasureExamplemetricsClimate-relatedopportunitiesamountandpercentage•netpremiumswrittenrelatedtoenergyefficiencyandlow-carbontechnology•numberof(1)zero-emissionsvehicles,(2)hybridvehiclesand(3)plug-inhybridvehiclessold•revenuesfromproductsorservicesthatsupportthetransitiontoalower-carboneconomy•proportionofhomesdeliveredcertifiedtoathird-party,multi-attribute,green-buildingstandardCapitaldeploymentpresentationcurrency•percentageofannualrevenueinvestedinR&Doflow-carbonproducts/services•investmentinclimateadaptationmeasures(forexample,soilhealth,irriga-tion,technology)ILLUSTRATIVEGUIDANCEONCLIMATE-RELATEDDISCLOSURES©IFRSFoundation5ColumbusBuilding7WestferryCircusCanaryWharfLondonE144HD,UKTel+44(0)2072466410Emailcustomerservices@ifrs.orgifrs.orgInternationalFinancialReportingStandards®,IFRSFoundation®,IFRS®,IAS®,IFRIC®,SIC®,IASB®,ISSBTM