TSRS 2 requires entities to use climate-related scenario analysis to assess climate resilience, using an approach commensurate with their circumstances. The analysis can start qualitatively and become quantitative as data improves.
Source: TSRS 2
Related terms
TSRS 2The standard setting out the disclosure requirements for climate-related risks and opportunities.Climate-related risksThe potential effects on a company's financial position of physical risks arising from climate change and transition risks arising from the shift to a low-carbon economy.Sensitivity analysisMeasuring the effect of changes in key assumptions on the outcome.Carbon Border Adjustment Mechanism (CBAM)An EU regulation that puts a price on the embedded carbon emissions in the production of certain goods imported into the European Union.Carbon creditA tradable certificate representing one tonne of carbon dioxide equivalent of greenhouse gas reduction or removal achieved by a verified project.Carbon footprintThe total greenhouse gas emissions caused by an organisation, product or activity, expressed in carbon dioxide equivalent (tCO₂e).
Last updated: November 8, 2026 · This definition is for general information only.