IFRS S1 & S2 2025 Examples: Aligning with JFSC Sustainable Finance Rules

Grant Thornton Releases 2025 IFRS Sustainability Disclosure Examples: Practical Guidance Aligning with JFSC Sustainable Finance Rules and Offering Valuable Compliance Insights for Jersey Firms

• Grant Thornton International Ltd has published the 2025 edition of IFRS Sustainability Disclosure Standards Example Sustainability-related Financial Disclosures 2025 (referred to as the "IFRS Example Sustainability Disclosures").
• This timely resource provides illustrative examples of sustainability reporting under the latest IFRS Sustainability Disclosure Standards. It is particularly relevant for Jersey-regulated entities navigating the Jersey Financial Services Commission's (JFSC) evolving expectations on sustainability risk management and disclosures.
• The publication builds on Grant Thornton's well-established series of IFRS Example Financial Statements and will be refreshed regularly to remain current.
• It serves as both an internal educational tool for Grant Thornton member firms and an external resource for clients and contacts.

What the Publication Covers

• The IFRS Example Sustainability Disclosures illustrate one possible approach to sustainability reporting for a fictional entity (the same illustrative group used in Grant Thornton's IFRS Example Financial Statements). This entity represents "typical" transactions across a range of non-specialist sectors. The examples focus on the requirements of:
• IFRS S1 – General Requirements for Disclosure of Sustainability-related Financial Information
• IFRS S2 – Climate-related Disclosures
• These standards are effective for annual reporting periods beginning on or after 1 January 2024 (with the publication based on those effective for the year ending 31 December 2025).
• The document covers areas such as governance, strategy, risk management, and metrics and targets, presented based on preparation and selected sustainability notes.

Important caveats (as stated by Grant Thornton):

• It is not comprehensive and does not cover every possible transaction.
• Other approaches may be more appropriate depending on specific circumstances.
• Consultation with sustainability reporting specialists is encouraged.
• No account has been taken of developments after 31 December 2025.

Download the full PDF here (3,170 kb):

• https://www.grantthorntonci.com/globalassets/1.-member-firms/channel-islands/pdf-documents/business-advisory/2026/25979-gti-sds-report-2025-final.pdf

How This Dovetails Perfectly with JFSC Rules and Delivers Valuable Compliance Advice

• The JFSC has made clear progress on sustainable finance.
• On 9 April 2026, the JFSC issued its Sustainable Finance Guidance Note, which sets a proportionate baseline for all registered persons under its Codes of Practice.
• The guidance explicitly aligns with the International Sustainability Standards Board (ISSB) framework — the body responsible for IFRS S1 and S2 — by adopting a single financial-materiality lens.
• This means firms focus on how sustainability-related risks (particularly climate change) could affect their financial position, performance, or cash flows.

Key JFSC expectations under the Codes include:

• Principle 3 (Risk Management): Firms must identify, assess, and manage sustainability-related risks (with a strong focus on climate, physical and transition risks) as part of their existing risk management frameworks. Assessments must be documented proportionately, escalated to the board, and reviewed periodically. The guidance explicitly recommends using the ISSB framework to determine the appropriate scope and depth of these assessments.
• Principle 7 (Conduct of Business / Anti-Greenwashing): Sustainability-related claims (on websites, marketing materials, reports, etc.) must be fair, clear, not misleading, and backed by robust, verifiable evidence. Enhanced requirements take effect from Q1 2027. Specific disclosure obligations already apply to funds or Jersey Private Funds (JPFs) marketed as investing in sustainable investments (e.g., taxonomy alignment, proportion of sustainable investments, methodologies, data limitations).
• Broader Action Plan: The JFSC's Sustainable Finance Action Plan (February 2025) commits to developing a "robust and proportionate disclosure framework, aligned to internationally recognised sustainability disclosure standards" — positioning Jersey as one of the first international finance centres to do so. A voluntary survey on current corporate sustainability disclosure practices was conducted in 2025 to inform this work.

Grant Thornton's 2025 IFRS Example Sustainability Disclosures therefore offers highly practical, real-world value for JFSC compliance:

• It demonstrates exactly how to apply IFRS S1 and S2 in practice — the same standards the JFSC references via the ISSB for risk assessments and future disclosure expectations.
• The illustrative governance, strategy, risk management, and metrics/target disclosures help firms document and communicate financially material climate and sustainability risks in a way that directly supports Principle 3 obligations.
• Clear, evidence-based examples strengthen the ability to make substantiated sustainability claims, reducing greenwashing risks under Principle 7.
• Because the publication uses a "typical" non-specialist entity, Jersey firms (including fund managers, investment businesses, and service providers using IFRS) can adapt the approach proportionately to their own operations — exactly as the JFSC encourages.
• It serves as a ready-made educational and implementation tool while Jersey moves toward formal adoption of an ISSB-aligned disclosure regime.

In short, firms that engage with this publication will be better prepared for both current JFSC supervisory expectations and any forthcoming mandatory corporate sustainability disclosures.

Why This Matters for Jersey's Financial Services Sector

• Jersey continues to strengthen its position as a well-regulated, forward-looking international finance centre.
• By aligning risk management and future disclosures with globally recognised ISSB/IFRS standards, the JFSC is helping firms future-proof their businesses, enhance resilience, and meet stakeholder and investor demands for transparent, decision-useful sustainability information.
• Grant Thornton's practical examples give Jersey firms a clear, credible roadmap—turning high-level regulatory principles into actionable reporting content.

Firms are encouraged to download the publication and discuss its application with their Grant Thornton or other sustainability advisers to ensure it fits their specific circumstances.

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Grant Thornton [GT] International Ltd has published.

• The 2025 version of 'IFRS Sustainability Disclosure Standards Example Sustainability-related Financial Disclosures 2025' ('IFRS Example Sustainability Disclosures').

GT SAYS

• This publication will be refreshed regularly, similar to the IFRS Example Financial Statements publications.
• The IFRS Example Sustainability Disclosures have been developed both as an educational tool for Grant Thornton International Ltd member firms and their staff and for external distribution to clients and contacts.
• ITS  objective is to illustrate one possible approach to sustainability reporting for the same fictional entity represented by our IFRS Example Financial Statements publications, which is intended to stand in for an entity engaging in transactions that are 'typical' across a range of non-specialist sectors.
• However, as with any example, this illustration does not envisage every possible transaction and therefore cannot be regarded as comprehensive.
• Other approaches may be more appropriate in specific circumstances.  
• This publication has been prepared based on IFRS Sustainability Disclosure Standards (IFRS SDS) that are effective for the year ending 31 December 2025.
• These Standards are IFRS S1' General Requirements for Disclosure of Sustainability-related Financial Information' and IFRS S2' Climate-related Disclosures'.
• No account has been taken of any new developments after 31 December 2025. 

Example Sustainability-related Financial Disclosures 2025 - Download PDF now [3170 kb]

• www.grantthorntonci.com/en/News-Centre/sustainability/example-sustainability-related-financial-disclosures-2025/    
• www.grantthorntonci.com/globalassets/1.-member-firms/channel-islands/pdf-documents/business-advisory/2026/25979-gti-sds-report-2025-final.pdf

Sources

1. Grant Thornton Channel Islands News Centre – Official Announcement: https://www.grantthorntonci.com/en/News-Centre/sustainability/example-sustainability-related-financial-disclosures-2025/
2. Direct Download – IFRS Example Sustainability Disclosures 2025 (PDF, 3,170 kb): https://www.grantthorntonci.com/globalassets/1.-member-firms/channel-islands/pdf-documents/business-advisory/2026/25979-gti-sds-report-2025-final.pdf
3. JFSC Sustainable Finance Guidance Page (includes link to full Guidance Note): https://www.jerseyfsc.org/industry/guidance-and-policy/sustainable-finance/
4. JFSC Sustainable Finance Guidance Note (full PDF – 9 April 2026): https://www.jerseyfsc.org/media/04zhbu22/2026-04-09-gn-sustainable-finance.pdf
5. JFSC Sustainable Finance Action Plan Page: https://www.jerseyfsc.org/industry/sustainable-finance/sustainable-finance-action-plan/

For further tailored advice on applying these examples to your Jersey-regulated entity, contact your Grant Thornton Channel Islands team or sustainability specialist.