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

IFRS S1 requires consideration of short, medium, and long-term horizons, with the entity defining the specific time periods appropriate to its business.

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

IFRS S1 requires entities to disclose how sustainability risks and opportunities affect their business model and value chain as part of strategy disclosures.

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

IFRS S1 requires disclosure of the processes and whether they are integrated into the entity's overall enterprise risk management framework.

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

IFRS S1 requires disclosure of specific targets, the metrics used to measure progress, the time frame, and performance against those targets.

Question 5

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

Accepted Answer

Faithful representation

Answer

Faithful representation requires sustainability disclosures to be complete, neutral, and free from material error — a core qualitative characteristic borrowed from IFRS accounting standards.

ISSB - International Sustainability Standards Board Practice Test

ISSB - International Sustainability Standards Board Practice Test

ISSB IFRS S1 General Requirements 3