IFRS S2 and the EU CSRD/ESRS expand disclosure granularity and assurance expectations, which should drive ledger design. Model double materiality (impact and financial materiality) by tagging each metric with materiality rationale and stakeholder linkage. Capture Scope 1, 2 (both location- and market-based), and disaggregated Scope 3 with traceable calculation methods, as ESRS E1 requires category-level transparency and transition plan details. Include data lineage fields (source system, owner, calculation version) to support assurance readiness and restatements.
Support narrative-linked datapoints—scenario analysis parameters, internal carbon price, targets, and progress—since IFRS S2 requires climate-related risks, strategy, and metrics/targets in TCFD-aligned structure. Prepare for digital reporting by aligning data elements to ESRS and ISSB/SASB taxonomy concepts and enabling XBRL tagging downstream. Separate offsets/credits from gross emissions and record credit attributes (project type, standard, vintage, retirement) for clear gross-to-net reconciliation.
Implement consolidation logic consistent with financial boundaries and reportable sub-entities to meet group-level and subsidiary-level disclosures under CSRD where applicable. Finally, design change controls and audit trails that meet limited/reasonable assurance pathways envisaged by the directives.
Key Takeaway: Build a traceable, taxonomy-ready ledger separating gross emissions, credits, and assumptions to satisfy ISSB S2 and CSRD/ESRS assurance-grade disclosures.