IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information requires an entity to disclose material 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 (an entity’s prospects).
IFRS S1 references the SASB Standards as a source of guidance that entities are required to consider when identifying sustainability-related risks and opportunities (beyond climate, which is addressed in IFRS S2 Climate-related Disclosures) and determining the information to disclose about those risks and opportunities. It requires that entities refer to and consider the applicability of the topics and metrics in the SASB Standards. IFRS S1 does not require entities to apply the SASB Standards.
In this connection, IFRS Foundation has recently issued attached education material ‘Using the SASB Standards to meet the requirements in IFRS S1’ which, inter-alia, provides guidance on how an entity can use the SASB Standards to identify its sustainability-related risks and opportunities (other than those related to climate) and related metrics.
We believe that the attached educational material will significantly help entities in preparation of their sustainability-related financial information in accordance with IFRS Sustainability Disclosure Standards.
Educational Material – Using the SASB Standards to meet the requirements contained in IFRS S1