IFRS S2 requires disclosure of: |
Survey findings |
How the latest international agreement on climate change, including jurisdictional commitments that arise from that agreement, has informed the target |
Consistent with 2022, 64% of companies specifically referenced the Paris Agreement when explaining how targets had been set but very few referred to any jurisdictional commitments. |
Whether the target and target methodology has been validated by a third party |
54% of companies disclosed that their targets had been verified by a third party, compared with 44% in 2022.
22% of companies disclosed their intention to have their targets verified by a third party or had submitted the targets for review and were awaiting the outcome.
In all but one case, the third party referenced was the Science Based Target Initiative (SBTI). The other company referred to an independent assessment by the Transition Plan Initiative (TPI).
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Any revisions to the target and an explanation for those revisions |
30% disclosed that targets had been revised during the year, compared to 22% in 2022.
In most cases, an explanation was provided with many companies explaining that the revisions were the result of the availability of new or more relevant information to assist in target setting. Other companies stated that they had successfully achieved their short-term targets and/or had set new or improved long-term targets to match their progress.
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The entity’s processes for reviewing the target |
18% of companies stated that targets had been reviewed but with little information provided on how this review was performed. |