In Episode 10 of The Risk Wheelhouse, hosts Ori Wellington and Sam Jones explore the newly introduced IFRS S1 and S2 standards—guidelines that are reshaping how companies disclose and manage sustainability-related risks and opportunities. As these standards gain traction worldwide, the conversation highlights their critical role in bridging the gap between traditional financial reporting and forward-looking measures of environmental and social impact.

What’s Inside This Episode?

Ori and Sam break down how IFRS S1 and S2 are driving a new era of transparency, making it possible for investors and stakeholders to compare sustainability performance with the same rigor as financial metrics. Rather than treating climate and ESG factors as add-ons, companies are now encouraged to fully integrate them into their risk frameworks and strategic planning. The result? Sustainability reporting moves from “nice-to-have” to “must-have.”

The Power of Phased Compliance and IRM

A major theme is the concept of “phased compliance,” which allows businesses to gradually increase the scope and sophistication of their sustainability disclosures. Leveraging Integrated Risk Management (IRM) principles, organizations can systematically identify, assess, and prioritize ESG-related exposures. Over time, these insights feed back into better data, stronger controls, and a more resilient operational model. Rather than scrambling to keep pace with regulatory shifts, companies can embrace IRM as a navigational tool, guiding them through evolving standards and stakeholder expectations.

Key Takeaways Include:

• Building Investor Trust: Transparent, standardized disclosures help investors distinguish genuine sustainability efforts from mere greenwashing.

• Aligning with Global Norms: IFRS S1 and S2 create a common language for ESG reporting, streamlining cross-border comparisons and enhancing market confidence.

• Data-Driven Adaptation: By applying IRM frameworks to ESG factors, companies can continuously refine their strategies, turning sustainability challenges into opportunities.

Why Listen?

This episode offers actionable guidance for organizations at every stage of their sustainability journey. Whether you’re just beginning to assess climate-related financial risks or aiming to refine established ESG programs, Ori and Sam provide insights on how IRM can be the catalyst for turning compliance obligations into value-creating strategies. Learn how to communicate progress openly, plan for long-term resilience, and stay aligned with emerging global standards.

Don’t miss this timely exploration of IFRS S1 and S2’s transformative impact on the future of enterprise risk management. Listen now on Apple Podcasts, Spotify, or Amazon Music and visit The RiskTech Journal for deeper insights. For more information, contact us at info@wheelhouseadvisors.com or connect with us on LinkedIn and X.