<p class="PDq2pG_selectionAnchorContainer" data-start="3659" data-end="3989">Traditional sustainability reports often focus on environmental initiatives without clearly explaining their financial impact. IFRS S2 climate-related disclosures take a different approach by connecting climate-related risks and opportunities directly to financial performance, enterprise value, and long-term business resilience.Rather than simply reporting sustainability activities, IFRS S2 requires companies to explain how climate issues influence governance, business strategy, financial planning, and operational decision-making. This financial materiality makes the disclosures significantly more valuable for investors and stakeholders.