Disclosure focus
This disclosure asks an organisation to explain the sustainability-related risks and opportunities it has identified and how it has considered them in preparing its reporting. In practice, the focus is on giving a clear picture of what matters to the business, rather than listing every possible issue. The organisation should describe the main matters it has found and the way they relate to its activities and reporting.
The practical emphasis is on coverage across the organisation, not just a few well-known sites or flagship operations. Readers should be able to understand whether the explanation reflects the full business, including relevant operations, locations and activities, and whether any parts of the organisation are more exposed than others. The aim is a balanced, decision-useful summary of the sustainability-related risks and opportunities that are most relevant overall.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS source.
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key information to prepare
＋ Show s1-30-a sub-elements (LRA working checklist)
Set out the cause-and-effect route showing how the issue creates an effect or dependence.
Explain how it could affect cash generation, funding access, or the price of finance.
Name the sustainability topic it relates to.
Describe the risk or opportunity in plain business terms.
State whether it is a risk or an opportunity.
Identify where in the value chain it sits.
How to prepare it
1Set the boundary for each item first: decide which part of the business or value chain it relates to, and keep that scope consistent across the disclosure.
2Classify the item in plain terms: identify the sustainability theme it belongs to, whether it is a downside risk or an upside opportunity, and where in the value chain it sits.
3Gather support for the link to money: collect the records or analysis that show how the matter could affect cash generation, funding access, or the price of capital, using the currency amount where relevant.
4Write the disclosure from the evidence: prepare a clear description of the matter itself, using the supporting material to explain the pathway and the financial connection in a way that is easy to trace.
5Record any gaps or changes: note what has been left out, any assumptions used, and any changes in scope, labels, or measurement approach so the reader can follow the trail.
6Check the final draft against the source material: confirm that each required item is covered, the wording matches the underlying evidence, and nothing has been missed or added.
Request the data
Request the risk and opportunity evidence from Finance
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
Which sustainability-linked risks or opportunities could affect cash flow, funding access, or the cost of capital, and how should we describe them in business terms?
Use your own internal labels first, then map them to the reporting categories. For example, use the names your teams already use for business risks, commercial opportunities, funding impacts, or value-chain issues rather than framework wording.
Weak request
Please provide the sustainability-related risks and opportunities data for the disclosure.
Why it fails: It uses framework language only, gives no clue which team should respond, and does not specify the business fields needed to evidence the issue, its location in the business, or the financial linkage. That makes it hard to extract usable evidence from existing finance or risk materials.
Better request
Please send the finance or treasury items you already track that could affect cash flow, funding access, or the cost of capital. For each item, include the internal name, plain-English description, business area, value-chain location, theme or driver, estimated financial effect, assumptions, source file, and the person who can confirm it. Use your own team terms first, then we will map them for the disclosure.
Industry examples
Draft your disclosure
Notes that turn data into a disclosure
LRA training templates — adapt them to your organisation, and check the official source before sign-off.
Method note
We based this disclosure on the issues we had already identified, using our own working definitions for the pathway, the business area affected, the issue type, and any possible financial connection.
Context note
Taken together, these figures show which sustainability issues could matter most for future performance, funding conditions, or financing costs, and where in the business value chain those effects may arise.
Fluctuation statement
Any changes from the prior period can be explained by updates to the issue list, a different view of which themes are most relevant, or a revised assessment of how each issue could affect the business financially.
Content index entry
s1-30-a Sustainability-related risks and opportunities — [location / page] / [notes]
Download Centre
Preparation tools & forms
Professional preparation tools for s1-30-a — free with an LRA Community membership. Register once (it's free) and every download unlocks, together with the Disclosure Library, templates and the LRA AI Assistant.
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
Figures are stated without the supporting narrative, or narrative without figures.Scope is inconsistent between the text and the numbers.The reporting boundary is left undefined.Material changes since the previous period are not disclosed.Estimates and measured values are not distinguished.Source records for the figures are not identified.
Common gaps
Mistakes to avoid when collecting the data
Wrong owner
The team asks the wrong business lead for the source data, so the file comes from someone who knows the topic in theory but does not hold the operational records.
Framework language only
The request is sent using reporting jargon instead of the organisation’s own terms, and the data owner cannot map it back to the systems or reports they actually use.
Scope left vague
No one defines which business units, sites, products or value-chain links are in scope, so different teams collect different populations.
Timing basis mixed up
One team pulls a year-end snapshot while another uses a rolling period, which makes the figures and descriptions impossible to compare cleanly.
Counting basis not aligned
Headcounts, incidents or amounts are gathered on different bases without being stated, so totals are combined even though they were built from unlike methods.
Source labels stripped out
The original system names, report titles or file references are removed during consolidation, leaving no way to trace each item back to its source.
Separate groups merged
Risks and opportunities, or different value-chain locations, are blended into one list even though they should stay distinct for the disclosure pack.
Evidence trail missing
The team saves the numbers but not the supporting metadata, so the date, owner, version and origin of each extract cannot be checked later.
No sign-off record
The draft is circulated without a clear approval trail, so nobody can show who reviewed the data, when it was checked, or what was accepted.
Where judgement is often needed
Set the reporting boundary after acquisitions and disposals
Use the same cut-off date and group perimeter for all six data points, and explain any bought-in or sold-on operations that change the picture during the period.
Choose one country rule where local definitions differ
If the same theme or risk is described differently across jurisdictions, pick the definition your organisation uses for reporting and say where that choice affects the description or location in the value chain.
Decide how to handle activities just inside or just outside scope
State the inclusion rule for borderline sites, entities, products or suppliers, and explain any material exclusions or inclusions that sit near the edge of the boundary.
Fix the timing basis for when the issue is counted
Make clear whether the item is captured at period end, over the year, or at the point management first identified it, and keep that basis consistent unless you explain a change.
Separate measured amounts from estimates
Show which figures come from direct records and which are modelled or approximated, and explain the main assumptions used where the link to cash, funding or capital cost is not directly observed.
Round numbers without obscuring the underlying position
Apply a consistent rounding rule across the disclosure set, and ensure the rounded figures still reconcile to the unrounded source data and the narrative.
Aggregate sensitive location or counterpart data for privacy
If naming a site, supplier or customer would expose personal or commercially sensitive information, group the data at a higher level and explain the aggregation basis.
Align the risk or opportunity label with the business story
Use one plain-language label for each item and explain whether it is a downside exposure or an upside possibility, so the theme, description and value-chain location all point to the same issue.
Handle mixed value-chain positions in one issue
Where the same matter affects more than one stage of the value chain, describe the main location first and note any other stages that are materially involved.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — manufacturing
We have identified a climate-related supply interruption in our metals sourcing, where hotter summers and water stress could reduce output at a key upstream supplier and delay our own production schedule.
- This sits in the upstream part of our value chain and is linked to our dependence on a single processing site for a critical input.
- The issue is tied to climate change, and we assess it as a risk because it could raise working capital needs, increase logistics costs, and weaken our borrowing terms if delivery reliability falls.
- In this illustration, 35% of our annual input spend (£70m of £200m) is exposed to that supplier, and a two-week delay would affect about 8% of quarterly shipments; both figures are internally consistent and shown only to explain the pathway to cash flow and financing effects.
Synthetic example for practitioner review only; not legal or compliance advice.
Illustrative (synthetic) example — financial services
We have identified a transition-related opportunity in our lending book, where demand for retrofit finance from commercial property clients could increase fee income and improve portfolio resilience as customers respond to tighter energy rules.
- The relevant theme is the move to lower-carbon buildings, and the effect arises in our client-facing activities rather than in our own operations.
- We treat this as an opportunity because stronger origination volumes could lift future cash receipts and support access to funding on better terms if investors view the book as more aligned with transition demand.
- In this illustration, 22% of new corporate lending commitments (£110m of £500m) are targeted at retrofit projects, and those commitments are expected to generate 30% of the projected fee uplift; the figures are synthetic and internally consistent.
Synthetic example for practitioner review only; not legal or compliance advice.
How companies report S1-30-a in practice
Examples of full and partial reporting practice. These are evidence-led reviews, not exact disclosure templates to copy.
Temenos AG
Software and Services · Switzerland · 2025
Temenos AG’s Sustainability Report 2025 covers relevant sustainability themes, noting that their activities have significant actual or potential impacts on people or the environment, assessed by scale and scope (p.12). The report also describes sustainability-related risks and opportunities that could influence enterprise value (p.13). However, the report provides only partial context on potential linkages to cash flows or access to finance (p.17), and does not clearly disclose a dependency impact pathway, specific risk opportunity types, or value chain locations.
Hyundai Engineering & Construction Co.,Ltd.
Construction and Engineering · South Korea · 2025
Hyundai Engineering & Construction Co., Ltd.'s 2025 Sustainability Report includes evidence on the effects of sustainability-related risks and opportunities on the company’s financial position, financial performance, and cash flows (p.138). The report also identifies physical risks in the construction phase by considering the geographic location of projects and assessing their financial impact (p.44). However, the report does not clearly disclose a dependency impact pathway, and while it provides related context on sustainability themes and risk opportunity descriptions, these are not explicitly detailed or clearly defined (pp.21, 138).
SITC International Holdings Company Limited
Water Transportation · Hong Kong · 2025
SITC International Holdings Company Limited’s 2025 Environmental, Social and Governance Report provides evidence of sustainability-related risks and opportunities affecting the entity’s financial position, financial performance, and cash flows, as noted on page 188. The report also references impact assessments conducted at multiple operational sites and commercial office areas (p.100), though it does not clearly disclose a dependency impact pathway. Notably, the report lacks clear disclosures on specific sustainability themes, types of risks or opportunities, and value chain locations.
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Check your understanding
Scenarios to work through
A procurement team flags that a key raw material comes from a region facing water stress. The issue could disrupt supply and raise input prices, but the finance team has not yet linked it to any forecast.
QShould you treat this as a sustainability-related risk for the disclosure, and what details need to be captured before sign-off?
Reveal model answer →Hide answer ↑Yes. The preparer should describe the issue in plain business terms, identify the sustainability theme involved, state whether it is a downside risk or an upside chance, explain where it sits in the value chain, and set out the possible connection to cash generation, funding access, or the price of capital. The description should be specific enough for a reader to understand the pathway from the underlying issue to the financial effect.
Why this matters · Capture the issue, its theme, its place in the value chain, its direction, and the possible financial link in one coherent explanation.
A business unit has identified a chance to win lower-cost financing if it meets a new emissions target, but the estimate is still being refined and no final loan terms have been agreed. The team wants to mention only the financing benefit and leave out the operational driver.
QCan you disclose only the financing upside, or do you need to explain the underlying sustainability driver as well?
Reveal model answer →Hide answer ↑You need to explain the underlying driver as well. The disclosure should not stop at the financing outcome; it should show the sustainability theme behind the chance, describe the opportunity itself, and indicate where it arises in the value chain. The possible effect on cash flows, funding access, or capital cost can be stated even if the amount is still an estimate, as long as the reasoning is clear and internally consistent.
Why this matters · Do not separate the financial upside from the sustainability cause that gives rise to it.
An operations team has two linked issues: a flood risk at one supplier site and a separate chance to redesign sourcing to reduce disruption. Both affect the same product line, but one is a downside exposure and the other is a potential benefit.
QHow should you decide whether to present these as one item or two, and what must each item make clear?
Reveal model answer →Hide answer ↑Treat them as separate items if the risk and the opportunity have different drivers or different financial pathways. Each item should clearly state whether it is a risk or an opportunity, identify the relevant sustainability theme, explain the dependency or impact pathway, and show where in the value chain it arises. If the two are closely connected, the narrative can cross-reference them, but the direction and financial linkage for each should still be understandable on its own.
Why this matters · Keep downside and upside effects distinct unless combining them still leaves each one clear.
A treasury paper says a climate-related supply issue may increase working capital needs by about £4 million and could make lenders more cautious, but the sustainability team has only written a broad note about 'resilience'. The draft disclosure also names the issue as both a risk and an opportunity in the same sentence.
QWhat should you do before finalising the disclosure?
Reveal model answer →Hide answer ↑Tighten the wording so the issue is described in a way that matches the underlying facts. If the main effect is adverse, present it as a risk; if there is a genuine upside, present that separately. Replace the broad label with the relevant sustainability theme, explain the pathway from the issue to the cash-flow, funding, or capital-cost effect, and state the value-chain location. The £4 million figure can be used if it is internally consistent with the rest of the narrative.
Why this matters · Use precise labels and a clear pathway so the financial effect is not overstated or blurred.
Framework references
Relevant IFRS / ISSB requirements and related disclosures
Available framework references and nearby disclosures relevant to preparing this requirement.
IFRS / ISSB
s1-30-a
within IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information
Open official source →Related & explore
FAQ
Questions this page answers
For s1-30-a, what data do I need to gather before I start drafting the disclosure?+−
The page says to prepare six datapoints: impact pathway, financial linkage estimate, sustainability theme, risk or upside summary, issue direction, and value chain stage. Use those as the starting checklist before you draft anything.
How do I use the step-by-step 'how to prepare' section for s1-30-a in practice?+−
Use it as a working sequence for shaping the disclosure, rather than as a finished answer. The page is designed to help you move from scoping and data gathering through to a draft output.
What should I include in the evidence pack for s1-30-a if I want to be assurance-ready?+−
The page includes an evidence pack with five items to support assurance readiness. Build your file around those items so you can show where the disclosure came from and how it was prepared.
What are the five assurance claims I need to verify for s1-30-a?+−
The page says there are five assurance claims to check, each tied to a claim, risk and evidence view. Use that section to test whether the disclosure is supported before it goes into a report.
What are the common reporting gaps or mistakes on the s1-30-a page, and how do I avoid them?+−
The page lists common gaps and mistakes to watch for when preparing the disclosure. Use that list as a pre-submission check so you can spot missing scope, weak evidence or unclear drafting early.
How do I turn the s1-30-a datapoints into a draft narrative and content index line?+−
The page includes draft-output support, including narrative starters and a content-index line. Use those prompts to turn the prepared datapoints into a short, report-ready draft.
What can I use from the s1-30-a workbook download, and when should I use it?+−
The Download Centre includes a Prep & Assurance workbook in .xlsx format. Use it to organise the disclosure work, capture the evidence trail and check readiness before drafting.
Is there a printable version of the s1-30-a guidance I can share with colleagues or data owners?+−
Yes. The Download Centre includes a printable Library Card in PDF format, which is useful for sharing the key points with colleagues involved in the disclosure.
How should I use the 'From company reports' table on the s1-30-a page?+−
It links to real published reports at the pages where the topic is disclosed, so you can see how others have handled similar reporting. Use it as a reference point, not as a template to copy.
What does the synthetic illustrative example on s1-30-a help me do?+−
The page includes synthetic illustrative example disclosures, including a quantitative table. Use them to see how the disclosure might look in practice, while keeping in mind they are made up and internally consistent.
How does the ESRS 2 correspondence on this page help me if I am trying to reuse data across frameworks?+−
The page notes a closest correspondence with ESRS 2 (General Disclosures), which can help you spot where data may be reusable. It does not say the requirements are identical, so treat it as a cross-check rather than a one-to-one mapping.
More questions this page can help with
s1-30-a disclosure checklist for sustainability managerss1-30-a evidence pack for assurance reviews1-30-a workbook download how to uses1-30-a common mistakes in drafting the disclosures1-30-a example disclosure narrative starterss1-30-a financial linkage estimate how to prepares1-30-a impact pathway and value chain stage data pointss1-30-a ownership and data owner responsibilitiess1-30-a assurance claims claim risk evidences1-30-a content index line examples1-30-a from company reports table how to uses1-30-a ESRS 2 correspondence data reuse
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