The International Sustainability Standards Board (ISSB) published the Exposure Draft, “IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information” (General Requirements Exposure Draft). It sets out the overall requirements for an entity to disclose sustainability-related financial information, including information about its governance, strategy and risk management, and related metrics and targets.
The General Requirements Exposure Draft proposes that an entity be required to disclose material information about all significant sustainability-related risks and opportunities to which it is exposed.
The proposals include requirements and guidance supporting the disclosure of material information about significant sustainability-related risks and opportunities not specifically addressed by an IFRS Sustainability Disclosure Standard.
To identify sustainability-related risks and opportunities and to disclose information about them, entities are directed to consider sources, including:
- the disclosure topics in the industry-based Sustainability Accounting Standards Board standards;
- the ISSB’s non-mandatory guidance (e.g., the Climate Disclosure Standards Board’s framework application guidance for water- and biodiversity-related disclosures);
- the most recent pronouncements of other standard-setting bodies whose requirements meet the needs of users of general-purpose financial reporting; and
- the sustainability-related risks and opportunities identified by entities operating in the same industries or geographies.