IFRS S2 · industry-based guidance
IFRS S2 industry-based guidance: 68 volumes, one duty to consider them
The Industry-based Guidance on Implementing IFRS S2 sets out climate disclosure topics and metrics for 68 industries, drawn from the SASB Standards.
It does not create requirements of its own, but IFRS S2 says an entity “shall refer to and consider the applicability” of it, and requires industry-based metrics in ¶32.
How it binds
Guidance, with a duty to consider it
The guidance accompanies IFRS S2 but is not part of it, so its metrics are not requirements in themselves.
IFRS S2 nonetheless directs an entity to it three times: when identifying climate-related risks and opportunities (¶12), when preparing the strategy disclosures (¶23), and when choosing industry-based metrics (¶32).
Each time the verb is “shall refer to and consider the applicability”, so an entity must look at the relevant volume and may conclude that some of it does not apply.
Paragraph 32 itself is a requirement: an entity “shall disclose industry-based metrics”, so declining a volume’s metrics does not remove the duty to disclose metrics that characterise the industry.
For topics other than climate, IFRS S1 ¶58(a) points to the full SASB Standards in the same way.
“This guidance suggests possible ways to apply some of the disclosure requirements in IFRS S2.
The guidance does not create additional requirements.”
IFRS S2 Accompanying Guidance, Industry-based Guidance, introduction.
Choosing a volume
Finding your industry, and saying which you used
The guidance is organised by the Sustainable Industry Classification System, which sorts companies into 77 industries across 11 sectors.
The ISSB suggests an entity start from its primary industry classification on the SASB Standards website.
A company whose operations span several industries, horizontally or along its value chain, may need several volumes to cover its climate-related risks and opportunities.
IFRS S1 ¶59(b) then requires it to identify the industries it applied, including in choosing its metrics.
- 1
Find the primary industry
Identify the entity’s industry under SICS; the SASB Standards site shows each company’s primary classification.
- 2
Add industries where needed
A conglomerate or a vertically integrated group may need more than one volume.
- 3
Consider each topic and metric
Decide which disclosure topics and metrics apply to the entity’s risks and opportunities.
- 4
Disclose what was applied
Name the volumes used, as IFRS S1 ¶59(b) requires.
The volumes
Sixty-eight volumes, across eleven sectors
Every volume is numbered and coded; the sectors and a sample of volumes are below, and the full Table 1 is in the Accompanying Guidance.
| SICS sector | Volumes | Examples |
|---|---|---|
| Consumer Goods | 1–6 | Apparel, Accessories & Footwear (CG-AA); E-Commerce (CG-EC) |
| Extractives & Minerals Processing | 7–14 | Coal Operations (EM-CO); Oil & Gas—Exploration & Production (EM-EP) |
| Financials | 15–19 | Asset Management & Custody (FN-AC); Commercial Banks (FN-CB); Insurance (FN-IN) |
| Food & Beverage | 20–26 | Agricultural Products (FB-AG); Processed Foods (FB-PF) |
| Health Care | 27–31 | Health Care Delivery (HC-DY) |
| Infrastructure | 32–39 | Electric Utilities & Power Generators (IF-EU); Real Estate (IF-RE) |
| Renewable Resources & Alternative Energy | 40–45 | Solar Technology & Project Developers (RR-ST) |
| Resource Transformation | 46–50 | Chemicals (RT-CH); Containers & Packaging (RT-CP) |
| Services | 51–53 | Hotels & Lodging (SV-HL) |
| Technology & Communications | 54–59 | Software & IT Services (TC-SI); Telecommunication Services (TC-TL) |
| Transportation | 60–68 | Airlines (TR-AL); Marine Transportation (TR-MT) |
What is changing
Kept in step with the SASB Standards
The guidance is derived from the SASB Standards, and the ISSB keeps the two aligned: its 2025 exposure draft said the climate topics, metrics and technical protocols are identical across both (ED/2025/2 Basis for Conclusions).
The 2025 proposals would amend the guidance for 46 industries: the nine priority industries reviewed in full, and 37 more on greenhouse gas emissions, energy management and water management.
In February 2026 the ISSB decided to propose matching amendments with its exposure draft on three further SASB Standards, with an effective date 12–18 months after issue (ISSB Update).
In July 2026 it chose the six Technology & Communications SASB Standards as the next to enhance (ISSB Update).
In the UK
UK SRS S2: “may” instead of “shall”
The UK changed the verb at ¶¶12, 23 and 32 of UK SRS S2, so a UK preparer “may refer to and consider” the industry-based guidance (Annex A).
Paragraph 37, on the metrics used to set and monitor targets, kept “shall”, after the exposure draft’s “may” there was reverted.
The UK duty to disclose industry-based metrics in ¶32 remains, so the change makes the guidance optional, not industry metrics.
Every UK difference is on UK SRS amendments.
Frequently asked
The industry-based guidance, answered
What is the Industry-based Guidance on Implementing IFRS S2?
A set of 68 industry volumes that accompany IFRS S2, each setting out climate-related disclosure topics and metrics for an industry.
It is derived from the SASB Standards and is largely identical to their climate-related content.
The ISSB says it suggests ways to apply IFRS S2 and does not create additional requirements.
Is the IFRS S2 industry-based guidance mandatory?
Not as such.
An entity is not required to apply the guidance, but IFRS S2 requires it to refer to and consider the applicability of the guidance’s disclosure topics and metrics (¶¶12, 23 and 32).
Separately, ¶32 requires industry-based metrics to be disclosed, so an entity that concludes a volume’s metrics do not apply still has to disclose industry-based metrics that do.
How many industries does the IFRS S2 industry-based guidance cover?
Sixty-eight.
They are organised by the Sustainable Industry Classification System (SICS) and numbered as Volumes 1–68; 68 of the 77 SASB Standards have a corresponding volume.
How do I find the right industry volume?
Start from your primary industry under SICS, which the SASB Standards website shows.
A company active across several industries, such as a conglomerate or a vertically integrated group, may need more than one volume.
IFRS S1 ¶59(b) requires the entity to identify the industries it applied.
What does UK SRS S2 say about the industry-based guidance?
The UK changed “shall” to “may” at paragraphs 12, 23 and 32, so a UK SRS S2 preparer may refer to and consider the guidance rather than being required to.
Paragraph 37 on targets still says “shall”.
Is the industry-based guidance changing?
Yes.
The ISSB is enhancing the SASB Standards and proposes consequential amendments to keep the guidance aligned: its 2025 proposals would affect 46 industries, a further exposure draft covered three more priority industries in 2026, and the six Technology & Communications standards are next.
Sources
Primary sources
Every figure, date and status on this page traces to the instrument’s owner.
Secondary commentary is never the source for a number.
- IFRS FoundationIFRS S2 Accompanying Guidance (June 2023), Industry-based Guidance introduction
“The guidance does not create additional requirements”; SICS organisation; Volumes 1–68 in Table 1.
- IFRS FoundationIFRS S2, full text (December 2025)
¶¶12, 23 and 32: “shall refer to and consider the applicability of” the industry-based guidance.
- IFRS FoundationIFRS S1, full text
¶59(b): identify the industry or industries applied.
- IFRS FoundationBasis for Conclusions on Proposed Amendments to the Industry-based Guidance (ED/2025/2, PDF)
68 of the 77 SASB Standards have a corresponding volume; proposals would affect 46 industries.
- IFRS FoundationISSB Update February 2026
Consequential amendments to the guidance with the three-industry SASB exposure draft; effective 12–18 months after issue.
- IFRS FoundationISSB Update July 2026
The six Technology & Communications SASB Standards are next.
- IFRS FoundationAdvisory Council, April 2026 — Update on the ISSB’s activities (PDF)
Twelve priority SASB Standards and targeted amendments across 41 more.
- IFRS FoundationSASB Standards
The source of the industry-based guidance.
- IFRS FoundationSASB Standards — standards library
Where an entity can identify its primary SICS industry.
- IFRS FoundationSICS industry list (PDF)
The Sustainable Industry Classification System’s 77 industries.
- Department for Business and TradeUK SRS S2 (PDF)
¶¶12, 23 and 32 use “may refer to and consider”.
- Department for Business and TradeConsultation response (PDF), Annex A
The “shall” to “may” change and its scope.
Continue reading
Read next
SASB Standards
The 77 industry standards the guidance is drawn from.
IFRS S2 cross-industry metrics
The seven categories every entity reports, whatever its industry.
IFRS S2
The climate standard, paragraph by paragraph.
UK SRS S2
The UK climate standard and its “may”.
UK SRS amendments
Every UK difference from the IFRS texts.
IFRS Sustainability Disclosure Standards
The whole ISSB family.