Transition Gaps for the Adoption of IFRS S2 in Agri-Food CompaniesListed on the Argentine Market

Abstract

This research explores climate-related sustainability financial disclosures and the transition process toward the implementation of IFRS S2 in publicly listed agri-food companies in Argentina—a sector highly exposed to climate- related impacts and dependencies. IFRS S2 requires disclosures of climate-related risks and opportunities that may affect companies’ financial information. The study focused on voluntary sustainability reports and mandatory financial statements under IFRS, submitted to the National Securities Commission (CNV) by listed agrifood companies for the 2022 and 2023 fiscal years.
The main objective was to identify transition gaps in the implementation of IFRS S2. To this end, general aspectsof the standard were analyzed, as well as cross-sector and sector-specific metrics for the Food & Beverage industry defined by the Sustainability Accounting Standards Board (SASB). Additionally, the study aimed to identify common patterns of climate-related risks and opportunities and examine the interrelation between sustainability and financial information.
The methodology employed was exploratory, based on the review of public information and the construction of an empirical database. The results show that the transition gap is smaller in general aspects of the standard, where companies present information, more aligned with IFRS S2. In cross-sector metrics, the gap widens due to limited information disclosed. For SASB sector-specific metrics, the gap narrows again. Regarding the interconnection between sustainability and financial information, it remains scarce, mostly limited to annual reports.