As early as the 2024 financial year, capital market-oriented groups will be required by IFRS S1 to publish certain sustainability information. So IFRS reporters need to hurry.
The focus of the IFRS S1 regulations is on information that is currently and in the future related to sustainability-related risks and opportunities - and is thus useful to financial statement readers when making decisions about the provision of resources for the company, e.g. investment and/or financing calculations.
Since the cash flows generated by the company are decisive for its valuation and future viability, their dependencies on sustainability-related resources should primarily be disclosed.
IFRS S1 thus requires publicly traded groups to disclose information about all sustainability-related risks and opportunities that have the potential to affect the entity's short-, medium- or long-term cash flows, access to finance or cost of capital.
This information must be integrated into the financial reporting in a prominent place, e.g. in the management report or the MD&A, and must be provided for the first time for financial years beginning on 1 January 2024. However, the ISSB has been lenient and has suspended the obligation to disclose comparative figures for the previous year as a start-up measure for the first-time disclosure.
The content of the new reporting modules focuses on process-related reporting on governance, corporate strategy, risk management and key figures as well as corporate objectives, which is oriented towards the value creation process of the company.