If you thought plain-old financial reporting was the only big act in town, say hello to the IFRS Sustainability Disclosure Standards. That’s a whole new set of reporting standards, issued in June 2023 and effective for reporting periods starting in 2024, that a growing number of jurisdictions are adopting.
Issued by the International Sustainability Standards Board (ISSB) under the IFRS Foundation, IFRS S1 (General Requirements) and IFRS S2 (Climate-related Disclosures) are the new leaders in ESG reporting.
But why does this matter? Investors, regulators, and socially conscious consumers all want to know the impact of your business on the planet. In this context, IFRS S1 and S2 serve as two tools to show that you’re not only focused on profit but that your company also has a bigger purpose and commitment to sustainability.
We’re using this guide to explore five solid IFRS software options that will help you comply with the requirements and automate the entire process.
What are the must-have features for IFRS software?
Here’s what to look for in an IFRS platform:
- Start with automation. Are you still manually evaluating GHG emissions or narrative disclosures? No way! You need a tool that generates calculations and qualitative responses automatically.
- Teamwork is what makes it all work. Prioritize it accordingly. Real-time collaboration allows you and your team to work together and stay prepared in the face of change. Look for a tool that enables that.
- Get your data in sync. Data should easily integrate with your ERP, ESG data platforms, or supply chain systems to ensure your sustainability metrics are up-to-date and without errors.
- Prepare for audits confidently. Audit trail features, for instance, let you track and document all sustainability-related data, metrics, and processes.
- Lastly, pick a tool that’s built for climate-specific knowledge and scenarios. For IFRS S2, look for tools that can support physical and transition risks, scenario analysis, and Scope 1, 2, and 3 emissions.
Let’s see what IFRS tools meet the criteria above:
Tracera
Tracera is a sustainability data management platform that makes IFRS S1 and S2 reporting easy to organize and automate. It has all the tools you need to assess physical and transition risks, export your reports, and communicate your disclosures with investors.
Notable IFRS software features
- Comprehensive framework completion tracker: Tracera’s organized tracker relies on a fully structured IFRS framework through an easy-to-use completion tracker, ensuring seamless progress monitoring, auditability, and compliance verification. No more freak-outs whenever the “Did we disclose our Scope 3 emissions?” question pops up.
- Collaborative reporting: Got a global team? Tracera supports your entire team so they can work on IFRS disclosures simultaneously, allowing for real-time edits, comments, and approval workflows, enhancing transparency and efficiency.
- Qualitative automation for narrative disclosures: Use AI to generate qualitative responses related to financial and sustainability reporting, reducing manual effort while maintaining consistency across reporting cycles.
- System integrations for data synchronization: Tracera’s integrations with your financial data systems, ESG platforms, and supply chain data will make your life a breeze. From emissions data for IFRS S2 to governance metrics disclosed for IFRS S1, this IFRS system will help you hit any sustainability goals.
House of Control’s IFRS 16
This IFRS software is built for lease accounting under IFRS 16. It won’t handle your sustainability disclosures, but for companies with large lease portfolios, it puts the underlying lease data — a common input for reporting on leased assets — in one auditable place.
Notable IFRS features
- Automated IFRS 16 processing: Manages lease calculations seamlessly, freeing time for reporting sustainability data for IFRS S1/S2.
- Audit-ready trails: Maintains detailed records of all lease data inputs and changes, simplifying audits.
Lucanet
Lucanet is a financial and sustainability reporting tool that lets you import your ESG and financial data from ERP systems, ESG platforms, or simple spreadsheets.
Notable IFRS features
- ESG data integration: Uses emissions, sustainability information, and other ESG indicators to support sustainability disclosures across frameworks including ESRS, with GHG Protocol-aligned Scope 1, 2 and 3 calculations.
- Excel-compatible workflow: Allows bulk data importing to comply with the complexity of IFRS S1/S2 datasets, with automations added to minimize errors.
- Scenario planning: Lets finance teams model and compare financial scenarios side by side — useful context for quantifying how climate-related assumptions flow through to the numbers.
Workiva
Workiva supports you in achieving IFRS S1/S2 requirements through a strictly collaborative process. Teams use this IFRS app to work together in real-time, revise narratives and metrics, and complete required data checks to ensure they’re audit-ready.
Notable IFRS features
- XBRL tagging: Automates XBRL tagging for IFRS S1/S2 files, in compliance with global investors’ guidelines.
- Real-time collaboration: Allows global teams to edit and approve IFRS S1/S2 disclosures for full efficiency at the same time.
- TCFD alignment climate tools: Uses Task Force on Climate-related Financial Disclosures (TCFD) frameworks for IFRS S2 files, making climate risk reporting transparent.
Ledgy
Ledgy focuses on equity and share plan management, including share-based payment expensing under IFRS 2. If executive or employee compensation includes sustainability-linked performance conditions, Ledgy can handle the vesting logic and the IFRS 2-compliant expense reporting behind it.
Notable IFRS features
- Automated IFRS 2 reporting: Instantly generates share-based payment expense and disclosure reports compliant with IFRS 2, UK GAAP or US GAAP.
- Audit-ready outputs: Tranche-level detail and disclosure reports support audits and quarter-end reporting deadlines.
So, where do you start?
When choosing an IFRS tool, it’s worth looking beyond the IFRS features. While you want your choice to help you with IFRS disclosure requirements, a better option is to go for a solution that can help you deliver on any new framework and legislation you might be required to comply with (provided that pricing is modular and that you pay for what you use at the moment).
Try a free Tracera demo to see how you can adhere to IFRS requirements as well as other global regulations and frameworks like CSRD, California climate disclosure laws and more!