IFRS Sustainability Standards: A Practical Guide for CFOs and Sustainability Teams

Discover how CFOs and sustainability teams can align with IFRS S1 and S2 standards. Learn practical steps for sustainability reporting, climate risk disclosure, and net zero strategies.

Updated September 2025

The International Financial Reporting Standards (IFRS) Sustainability Standards—IFRS S1 and IFRS S2—are reshaping how companies disclose sustainability-related information.

For Chief Financial Officers (CFOs) and sustainability teams in the Philippines, these standards mark a decisive shift: sustainability reporting is no longer a side task but a core part of financial and strategic planning.

Need help aligning your reporting with IFRS S1 and S2?
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What Are the IFRS Sustainability Standards?

IFRS S1 provides a comprehensive baseline for sustainability disclosures, while IFRS S2 zeroes in on climate-related risks and opportunities. Both standards are designed to ensure investors receive consistent, comparable, and decision-useful information—bridging financial reporting with sustainability reporting.

The Securities and Exchange Commission (SEC) in the Philippines has already signaled convergence with these standards through Memorandum Circular No. 10, s. 2022, and more recently, MC No. 4, s. 2024, requiring publicly listed and large unlisted companies to prepare sustainability reports aligned with global frameworks.

Philippine companies that adopt IFRS early will gain a competitive edge in investor confidence and regulatory readiness.

Why CFOs and Sustainability Teams Should Pay Attention

1. Investor Trust

Global investors increasingly demand investor-grade sustainability disclosures. IFRS alignment signals transparency, building credibility in capital markets.

2. Risk Management

From typhoon damage to carbon pricing, climate change poses material risks. IFRS S2 requires companies to identify, measure, and disclose these risks.

3. Strategic Integration

Sustainability consultants emphasize that reporting should not be compliance-driven alone. Proper adoption integrates net zero strategies, supply chain resilience, and climate action into overall business planning.

Looking to align governance, finance, and ESG?
Schedule your consultation with GCSS, Inc. today

Comparative Guide: IFRS S1 vs IFRS S2 vs TCFD

Confused between IFRS and TCFD?
Let GCSS, Inc. guide your team through disclosure mapping and integration.

How CFOs Can Lead the Transition

How Should CFOs Strengthen Governance for IFRS Reporting?

Ensure ESG oversight is integrated at the board and executive level, not siloed in CSR departments.

What Data Systems Are Needed for IFRS?

CFOs must invest in auditable, scalable data collection systems across environmental, social, and governance metrics.

How Do You Align Reporting with Net Zero?

Embedding climate action and net zero targets into financial disclosures under IFRS S2 makes transition plans credible.

Ready to build investor-grade disclosures?
Book your sustainability reporting consultation with GCSS, Inc. today.

Practical Steps for Philippine Companies

Conduct Materiality Assessments – Prioritize ESG issues most relevant to your stakeholders and financial performance
Perform Gap Analysis – Compare your current sustainability report against IFRS S1 and S2 requirements
Scenario Planning – Use TCFD-aligned models to evaluate climate risks
Stakeholder Engagement – Communicate ESG strategy with investors, regulators, employees, and communities
Continuous Improvement – Treat sustainability reporting as a living process, not a one-time exercise

The Bottom Line

IFRS Sustainability Standards are not just about compliance—they are about creating long-term value, resilience, and trust. CFOs and sustainability teams that move early will reduce risks, unlock capital, and future-proof their business models against climate change and regulatory shifts.

Reach out at sales@gcssinc.com to secure your investor trust and regulatory compliance. Book your discovery call here and talk to our experts today.

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