IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information establishes the core framework + objective + principles + and content elements applicable across all sustainability topics. Objective: require an entity to disclose information about sustainability-related risks and opportunities that is useful to primary users of general purpose financial reports (primarily investors + lenders + other creditors) in making decisions relating to providing resources to the entity. Material Sustainability-Related Financial Information: per IFRS S1 + information is material if omitting + misstating + or obscuring it could reasonably be expected to influence decisions that primary users make on the basis of the entity sustainability-related financial information about a specific reporting entity. Materiality is entity-specific + decision-useful + based on what the entity considers material to its general purpose financial reporting. (1) Pillar 1 Governance: disclose governance processes + controls + procedures the entity uses to monitor + manage + and oversee sustainability-related risks and opportunities + including (a) identification of the responsible body or person; (b) how that body or person determines whether the appropriate skills and competencies are available; (c) how the body is informed and how often; (d) how the body considers risks and opportunities when overseeing strategy + major transactions + risk management; (e) how the body sets and monitors performance metrics and targets including how those targets are integrated into employee performance evaluation + remuneration. (2) Pillar 2 Strategy: disclose how sustainability-related risks and opportunities affect the entity strategy + business model + value chain + and decision-making + including (a) sustainability-related risks and opportunities identified across short + medium + and long time horizons; (b) current and anticipated effects on business model; (c) effects on cash flows + access to finance + cost of capital; (d) effects on financial position + financial performance + cash flows over short + medium + and long term; (e) financial planning effects; (f) resilience of strategy considering different sustainability scenarios. (3) Pillar 3 Risk Management: disclose processes + controls + procedures used to identify + assess + prioritise + and monitor sustainability-related risks and opportunities + including (a) inputs and parameters used; (b) sources of information; (c) qualitative and quantitative methods; (d) integration with overall risk management process. (4) Pillar 4 Metrics and Targets: disclose metrics used to measure performance + targets the entity has set + measurement standards + including (a) cross-industry standardised metrics where prescribed; (b) industry-specific metrics; (c) entity-specific metrics + including remuneration linked to sustainability performance; (d) historical performance + scenario testing. TCFD Alignment: 4-pillar structure inherits from TCFD ensuring continuity for early adopters + supersedes TCFD as of FSB 2024 dissolution. Cross-Industry Disclosure Topics: applicable to all entities + including sustainability-related risks and opportunities + remuneration linked to sustainability. Coordinates with TCFD 4 Pillars (Governance + Strategy + Risk Management + Metrics and Targets) + COSO ERM + ISO 31000 + IFRS Accounting Standards + IFRS Conceptual Framework + IFRS Foundation Practice Statement 2 Materiality + EU CSRD ESRS double materiality (financial + impact) + GRI materiality + SASB materiality. IFRS S1 Four Pillars applies.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.