ISSB releases educational material for IFRS S1 and IFRS S2 implementation
ISSB releases educational material for IFRS S1 and IFRS S2 implementation
The IFRS Foundation has released a comprehensive guide to help companies identify and disclose material information about sustainability-related risks and opportunities. This guide supports the implementation of the International Sustainability Standards Board (ISSB) Standards and focuses on how these risks and opportunities, described in IFRS S1, can impact a company's cash flows, access to finance, or cost of capital. It emphasises integrated thinking, considering the link between a company, its stakeholders, society, the economy, and the natural environment throughout its value chain. Investors and global capital markets increasingly demand this information for informed decision-making.
IFRS S1 explains that companies rely on and impact resources and relationships, such as human, intellectual, financial, natural, manufactured, and social, throughout their value chain. These dependencies and impacts can lead to sustainability-related risks and opportunities affecting a company's prospects. The guide also highlights how companies can benefit from existing processes for making materiality judgments, particularly when applying IFRS Accounting Standards. It aligns with the four-step process in the International Accounting Standards Board’s IFRS Practice Statement 2: Making Materiality Judgements. Additionally, the guide provides considerations for connecting sustainability-related financial disclosures with financial statements and for those applying ISSB Standards alongside other sustainability reporting standards like the European Sustainability Reporting Standards (ESRS) or Global Reporting Initiative (GRI) Standards.
More information is available in the press release. A new comprehensive guide can be accessed here.
IFRS S1 explains that companies rely on and impact resources and relationships, such as human, intellectual, financial, natural, manufactured, and social, throughout their value chain. These dependencies and impacts can lead to sustainability-related risks and opportunities affecting a company's prospects. The guide also highlights how companies can benefit from existing processes for making materiality judgments, particularly when applying IFRS Accounting Standards. It aligns with the four-step process in the International Accounting Standards Board’s IFRS Practice Statement 2: Making Materiality Judgements. Additionally, the guide provides considerations for connecting sustainability-related financial disclosures with financial statements and for those applying ISSB Standards alongside other sustainability reporting standards like the European Sustainability Reporting Standards (ESRS) or Global Reporting Initiative (GRI) Standards.
More information is available in the press release. A new comprehensive guide can be accessed here.