Business model and value chain effects

Please provide the IFRS S1 business model and value chain effects evidence for disclosure ifrs-s1::s1-32, including affected value-chain segments, anticipated effects, current effects, financing or investment channel exposure, geographic / asset / facility concentration, and upstream / downstream concentration.

Why it fails: It uses framework language that many teams will not recognise, so the owner may not know which internal reports to pull. It also asks for the disclosure labels rather than the business facts the team already tracks, which makes it harder to respond quickly and accurately.

Please send the latest internal evidence for [business area] showing what parts of our operating chain are affected, what is happening now, what may change next, where funding or investment exposure sits, and where exposure is concentrated by country, site, asset, supplier or customer. Use your own team’s terms and attach the source file or dashboard.

Set out how the figures were built, including what each category means, which parts of the business and value chain were included, and the basis used to group exposures and effects.

Explain what the numbers indicate in practice, such as where the main exposure sits, which parts of the chain are most affected, and whether the issue is concentrated in particular places or funding routes.

If the figures move materially, describe the main driver in plain terms, for example a change in where exposure sits, a shift between current and expected effects, or a new concentration in a specific region, asset, facility, or channel.

This guide covers one requirement. The IFRS S1 & S2 Reporting course walks the full ISSB workflow — governance, strategy, risk management and metrics — with exercises on your own data.

Available as Guided Flex, Live Cohort, 1:1 Expert Mentorship or Corporate Programme.

Evidence pack to prepare

Common reporting gaps

We describe where our supply chain and customer-facing activities are most exposed, and how that shows up now and may change later. - Around 62% of our current exposure sits in component sourcing and contract manufacturing, with the remainder in warehousing, retail distribution and after-sales service; by geography, 48% is linked to East Asia, 27% to Europe and 25% to North America. - Our lending and insurance cover is also concentrated: 71% of committed borrowing and 54% of insured asset value relate to two manufacturing sites and one logistics hub, while 58% of our supplier finance and receivables programmes are tied to downstream distributors. - At present, we are seeing longer lead times and higher freight costs in those same segments, and we expect further pressure on inventory availability and service levels if disruption persists.

This synthetic disclosure shows how to explain where exposure sits across the value chain, where it is concentrated by place and asset, and how current disruption differs from expected future effects.

We focus on the parts of our business most exposed today and the areas where we expect the next shift in impact. - The main pressure is in farm-gate sourcing, chilled transport and wholesale delivery, which together account for 79% of our current operational exposure; the balance is in packaging and local storage. - Our assets are clustered: 66% of plant capacity is in one coastal region, 21% in a second region and 13% in a third, while 57% of our financed equipment and 49% of our working-capital facilities sit with three cold stores. - We are already seeing spoilage losses and intermittent route delays in the affected segments, and we expect more frequent service interruptions and higher replacement costs if weather-related disruption increases.

This synthetic disclosure demonstrates how to link present-day effects and likely future effects to the parts of the business, locations, assets and funding arrangements that are most exposed.

A manufacturer buys most of its key inputs from two suppliers in one coastal region, and a severe storm has already delayed deliveries for three weeks. The finance team is also reviewing whether the same suppliers sit in a single credit line arrangement that could tighten if disruption continues.

A retailer sources 70 of its 100 stores from one distribution hub, and a flood has closed that hub for ten days. Management expects temporary rerouting costs now, plus possible longer-term changes to stock availability if the site remains unavailable.

An asset manager has a lending portfolio where 40% of the book is secured against properties in one flood-prone city, and 15% is tied to one industrial sector that depends on a single export route. A climate event has not yet caused losses, but internal stress testing suggests higher default risk if transport disruption persists.

A food producer has a major customer that accounts for 55 of 120 million in annual sales, and that customer has signalled it may switch to a lower-carbon product line within two years. The producer also relies on one packaging supplier for 80% of its cartons, and that supplier is in a region facing water stress.

This guide covers one requirement. The IFRS S1 & S2 Reporting course walks the full ISSB workflow — governance, strategy, risk management and metrics — with exercises on your own data.

Available as Guided Flex, Live Cohort, 1:1 Expert Mentorship or Corporate Programme.