A practical guide to applying IFRS sustainability disclosure standards

Introduction

Foreword

Concept and general regulatory scope of sustainability

What are they?

What are the benefits of using them?

Sectors and Industries According to SASB Standards

Chapter 1

General Requirements for Sustainability-Related Financial Disclosures

1. Governance

2. Strategy

3. Risk and Opportunity Management

4. Targets and Metrics

Suppliers

Customers

Competitors

Sources of Funding

Market Conditions

Sustainability Goals and Targets

Responses to the Risks and Opportunities associated with Sustainability

Sustainability Committee

Role of Management in Governance, Delegation and Controls Reporting Processes

Sustainability-Related Risks that could be Expected to Affect the Entity’s Prospects

Sustainability-Related Opportunities that could be Expected to Impact the Entity’s Prospects

Resilience of the Entity

Processes and Policies on the Management of Sustainability-Related Risks and Opportunities

Metrics used to Measure and Monitor Sustainability-Related Risks and Opportunities

Entity´s Results in Relation to Sustainability Metrics

Entity’s Results in Relation to Sustainability Targets

Chapter 2

Climate-Related Disclosures

1. Governance

2. Strategy

3. Risk and Opportunity Management

4. Targets and Metrics

1. Nature and characteristics of the process of generation, transmission and distribution of electrical energy

2. Strategies to mitigate the negative effects on the climate of electric power generation, transmission and distribution

Suppliers

Customers

Competitors

Sources of Funding

Market Conditions

Climate Goals and Targets

Responses to Climate-Related Risks and Opportunities

Climate Committee

Role of Management in Governance, Delegation and Controls Reporting

Climate-related risks that could be expected to affect the entity’s prospects

Climate-related opportunities that could impact the entity’s prospects

Climate-Related Transition Plan

Resilience of the Entity

Processes and policies associated with climate-related risk and opportunity management

Oversight

Link between the overall risk assessment process with the climate-related risk and opportunity management process

Metrics used to measure and monitor climate-related risks or opportunities

Chapter 3 

Practice of Integrating
Sustainability-Related Disclosures

Statement

Tasks

Statement

Tasks

Funding Providers

Clients

Competitors

Sustainability Goals and Targets

Climate Goals and Targets

Sustainability Committee

Role of Management in Governance, Delegation and Controls Reporting

Specialised Committees that Complement Sustainability Governance Processes

Sustainability and climate-related risks and opportunities that could be expected to affect the entity’s prospects

Effect of sustainability risks and opportunities on financial position, operating results and cash flows

Impact of sustainability and climate risks and opportunities on the bank’s business model, value chain, strategy and decision-making

Climate-Related Transition Plan

Resilience of the Entity

Identification, assessment, prioritisation and oversight of risks and opportunities

Oversight

Links between the General Risk Assessment Process and the Sustainability and Climate-Related Risk and Opportunity Management Process

Metrics used to measure and oversee sustainability and climate-related risks and opportunities

Annexes

Annex 1. Fundamental elements of the climate-related transition plan according to the Transition Planning Working Group

Annex 2. Relevant Scope 3 greenhouse gas disclosure categories

About the Author

References