An updated resource aiming to help companies wanting to apply both the IFRS Sustainability Disclosure Standards and the Integrated Reporting Framework was released by the IFRS Foundation today.
The resource ‘Transition to integrated reporting: A guide to getting started’ provides a phased approach to implementing the Integrated Reporting Framework and helps preparers understand how IFRS Sustainability Disclosure Standards can be considered in their reporting journey.
This integrated report concisely communicates an organisation’s strategy, governance, performance and prospects. The report summarises how an organization creates, preserves or erodes value in the short, medium and long term, in the context of its external environment and through a multi-capital lens.
The Integrated Reporting Framework is used by companies in more than 75 countries globally and drives high-quality corporate reporting and connectivity between financial statements and sustainability-related financial disclosures, bringing together the information that investors need to assess a company’s ability to create value over time.
However, while the Integrated Reporting Framework provides principles-based guidance for reporting structure and content, companies also need to use Standards to provide granular information. Accordingly, IFRS S1 lists an integrated report as one possible location for sustainability-related financial disclosures when it forms part of the general purpose financial reports.
The updated Getting Started Guide will help companies prepare to implement IFRS S1 General Requirements for Disclosure of Sustainability-Related Financial Information and IFRS S2 Climate-related Disclosures.