ISSB IFRS S1 General Requirements 3

Question 1

Under IFRS S1, what time horizons must entities consider when assessing sustainability risks and opportunities?

Accepted Answer

Short, medium, and long term — with the entity defining specific periods given its business context

Answer

Only the 12-month financial year period

Answer

Exactly 1, 5, and 30 years as defined by ISSB

Answer

Whatever single horizon regulators in the entity's jurisdiction specify

Question 2

How does IFRS S1 address the relationship between sustainability risks and an entity's business model?

Accepted Answer

Entities must explain how sustainability risks affect or may affect their business model, value chain, and strategy

Answer

Business model disclosures are reserved for IFRS S2 climate disclosures only

Answer

Sustainability risks are disclosed separately from business model analysis

Answer

Only companies in extractive industries must link sustainability to business model

Question 3

Under IFRS S1, what must an entity disclose about its risk management process for sustainability issues?

Accepted Answer

Processes used to identify, assess, prioritize, and monitor sustainability risks and whether integrated with overall risk management

Answer

Only a list of identified risks without describing the process

Answer

Quantitative risk scores for each sustainability topic

Answer

Insurance coverage amounts for sustainability-related losses

Question 4

What does IFRS S1 require entities to disclose about their sustainability-related targets?

Accepted Answer

Targets set and performance against them, including the metrics used, time frame, and any milestones

Answer

Only aspirational long-term goals without interim milestones

Answer

Targets are voluntary disclosures under IFRS S1

Answer

Only science-based targets aligned with the Paris Agreement

Question 5

Under IFRS S1, which qualitative characteristic requires sustainability disclosures to be free from material error and bias?

Accepted Answer

Faithful representation

Answer

Relevance

Answer

Comparability

Answer

Timeliness

Question 6

How does IFRS S1 handle situations where information about sustainability risks is commercially sensitive?

Accepted Answer

Entities may omit specific details if disclosure would be seriously prejudicial, but must indicate the nature of the omission

Answer

Commercial sensitivity is not recognized; all required information must be disclosed

Answer

Commercially sensitive information is fully exempt with no disclosure required

Answer

Entities must seek ISSB approval before omitting sensitive details