This publication contains an illustrative example of a basis of preparation and selected sustainability notes for an entity reporting under the IFRS Sustainability Disclosure Standards (IFRS SDS) for the first time. It presents examples of how a fictional entity, VALUE Plc, might apply some of the requirements in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures based on hypothetical scenarios and hypothetical risks to the entity.
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Example sustainability disclosures under IFRS Sustainability Disclosure Standards
VALUE Plc is the same entity on which the IFRS Accounting Standards illustrative financial statements are based. The group structure, nature of operations, financial performance etc. are consistent between this illustrative sustainability report and the illustrative financial statements.
This publication is not a complete sustainability report – it only covers specific areas and selected disclosure requirements under the IFRS SDS. For the purposes of this illustrative example, only one risk for each of environmental, social and governance areas has been included. Other sustainability-related risks and opportunities might exist for VALUE Plc which would require disclosure, but are not included for purposes of this illustration. Disclosures related to greenhouse gas emissions (except for the policy on reporting boundary), climate-related transition risks and sustainability-related opportunities have not been illustrated.
In Australia, entities in the scope of the mandatory reporting requirements are required to make disclosures related to climate-related risks and opportunities under Australian Sustainability Reporting Standards (ASRS). Therefore some disclosures illustrated in this publication are not mandatorily applicable (ie disclosures related to sustainability-related risks and opportunities beyond those related to climate). However, Australian entities have the option to voluntarily report on broader sustainability-related risks and opportunities should they choose.
In Australia, the Corporations Act 2001 requires that entities in the scope of the mandatory reporting requirements consider at least two specified scenarios in performing scenario analysis to inform their climate resilience disclosures. These illustrative disclosures - whilst prepared under IFRS SDS rather than ASRS - demonstrate compliance with the requirement to consider the two specified scenarios under the Corporations Act.
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