IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information

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Frameworks and Standards
December 28, 2023

The objective of IFRS S1 is to require an entity to disclose information about its sustainability-related risks and opportunities that is useful to users of general purpose financial reports in making decisions relating to providing resources to the entity.

IFRS S1 requires an entity to disclose information about all sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s cash flows, its access to finance or cost of capital over the short, medium or long term (collectively referred to as ‘sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s prospects’).

IFRS S1 prescribes how an entity prepares and reports its sustainability-related financial disclosures. It sets out general requirements for the content and presentation of those disclosures so that the information disclosed is useful to users in making decisions relating to providing resources to the entity.

IFRS S1 sets out the requirements for disclosing information about an entity’s sustainability-related risks and opportunities. In particular, an entity is required to provide disclosures about:

  • the governance processes, controls and procedures the entity uses to monitor, manage and oversee sustainability-related risks and opportunities;
  • the entity’s strategy for managing sustainability-related risks and opportunities;
  • the processes the entity uses to identify, assess, prioritise and monitor sustainability-related risks and opportunities; and
  • the entity’s performance in relation to sustainability-related risks and opportunities, including progress towards any targets the entity has set or is required to meet by law or regulation.

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