Sustainability reporting
The information reported and the materiality perspective depend on the applicable framework. IFRS Sustainability Disclosure Standards focus on sustainability-related risks and opportunities that could reasonably be expected to affect an entity’s prospects and provide material information to primary users of general-purpose financial reports. Other frameworks may also address wider impacts. Identify the applicable requirements and maintain consistency and connectivity with related financial information.
Worked example
A company assesses water scarcity affecting a major facility and explains the relevant risk, management response and metrics in its sustainability disclosures under the applicable framework.
Common mistake
Assuming every sustainability framework uses the same materiality test or treating a general sustainability narrative as automatically compliant with IFRS S1 and S2.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |