TSRS 2 requires disclosure of physical and transition risks, climate scenario analysis, Scope 1, Scope 2 and Scope 3 greenhouse gas emissions, and climate-related targets.
Related terms
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.Scope 1, 2 and 3 emissionsThe classification of greenhouse gas emissions by source into direct emissions (Scope 1), indirect emissions from purchased energy (Scope 2) and other indirect emissions in the value chain (Scope 3).Greenhouse Gas ProtocolThe most widely used international accounting and reporting framework for organisations to calculate and report their greenhouse gas emissions.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 footprintThe total greenhouse gas emissions caused by an organisation, product or activity, expressed in carbon dioxide equivalent (tCO₂e).Double materialityAssessing sustainability matters both in terms of their effect on the company's financial position (financial materiality) and the company's impact on the environment and society (impact materiality).
Last updated: October 22, 2026 · This definition is for general information only.