The research investigates the impact of IFRS S2 implementation on investment decisions. The study was conducted on a sample of investors in the industrial sector of companies listed on the Iraq Stock Exchange by distributing a questionnaire to them to reach reliable results. The research results showed that applying the IFRS S2 standard did not impact improving investment decisions for investors in the targeted sample. The research concluded that improving investment decisions requires more awareness and training for investors on the importance of climate risk disclosure and its potential impact on the financial performance of companies. In addition, there is a need for companies listed on the Iraq Stock Exchange to enhance climate-related disclosures to be more transparent and appropriate to the needs of investors.