IFRS S1
IFRS S1 is an International Sustainability Standards Board disclosure standard requiring information about sustainability-related risks and opportunities that could reasonably be expected to affect an entity's cash flows, access to finance, or cost of capital over the short, medium, or long term.
In simple terms
The standard establishes general requirements for sustainability-related financial disclosures designed for primary users of general purpose financial reports. Information is organized around governance, strategy, risk management, and metrics and targets, and should be connected with the related financial statements. An entity applies IFRS S1 together with applicable ISSB standards, including IFRS S2 for climate. The standard is globally oriented, but it does not automatically have legal force everywhere; jurisdictions and other authorities decide whether, when, and how entities must use it.
Why it matters
IFRS S1 provides a common investor-focused baseline for reporting sustainability-related financial information across environmental, social and governance topics. It can improve consistency between sustainability disclosures and financial reporting and help capital providers evaluate enterprise prospects. Preparers still need to determine applicable jurisdictional rules and identify material risks and opportunities rather than treating the standard as a fixed checklist of every sustainability topic.
Example
For example, a beverage company concludes that long-term water scarcity could affect production, costs, and access to finance. Under IFRS S1, it explains relevant governance, strategy, risk processes, performance measures, and financial connections, using the requirements adopted for its reporting jurisdiction.
How it differs
IFRS S2
IFRS S1 sets general requirements for sustainability-related financial disclosures across topics. IFRS S2 supplies the corresponding topic-specific requirements for climate-related risks and opportunities and is applied with IFRS S1.
References
Current status
- As of
- Issuer
- International Sustainability Standards Board
- Instrument or version
- IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
- Status
- Issued in June 2023 and effective for annual reporting periods beginning on or after 1 January 2024.
Applicability: Actual use depends on adoption, endorsement, regulation, listing rules, contractual requirements, or voluntary application in the relevant jurisdiction.