Investor Presentaiton
Comparing Standards IFRS S1 and ESRS 1, ESRS 2
Elements of
mapping
IFRS S1 vs ESRS 1 and 2
Objective
Scope
Core content
Approach to
materiality
General
features
ESRS approach to identify the stakeholders includes affected stakeholders and users of sustainability reporting/
stakeholders with an interest in the undertaking. The IFRS S1 refers to the term primary users included in the broader
definition of stakeholders in ESRS 1.
ESRS 1 refers to a list of sustainability matters to be covered. But IFRS S1 focuses on information necessary for its
primary users to assess the enterprise value.
Both standards provide disclosure requirements to cover the governance, risk management, strategy and metrics and
targets. IFRS S1 allows to provide qualitative information if an entity is unable to provide quantitative information as
ESRS doesn`t have this provision. Also, ESRS 1 doesn't require to disclose sustainability-related risks and
opportunities for which there is a significant risk that there will be a material adjustment to the carrying amounts of
assets and liabilities reported in the financial statements within the next financial year.
Both standards consider financial materiality. Impacts are considered in IFRS S1, as source of potential financial
effects. ESRS materiality explicitly encompasses impact materiality next to financial materiality.
IFRS S1 refer to the SASB sector-specific guidance while ESRS sector-specific standards will be developed at a later
stage. IFRS S1 states that the sustainability-related financial disclosures shall be for the same reporting period as the
financial statements which is not covered in ESRS. IFRS S1 requires locating the information in the general purpose
financial reporting. ESRS disclosures have to be presented as a part of the management report.
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How to prepare a report in compliance with IFRS S1/S2?
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