Disclosure focus
The objective of sustainability-related financial disclosures on governance is to enable users of general purpose financial reports to understand the governance processes, controls and procedures an entity uses to monitor, manage and oversee sustainability-related risks and opportunities.
This disclosure requires the entity to identify the governance body(s) or individual(s) responsible for oversight of sustainability-related risks and opportunities and explain the governance arrangements supporting that oversight. It covers responsibilities in governance documents, skills and competencies, information flows, oversight of strategy, major transactions and risk management including trade-offs, and oversight of targets, progress and related remuneration metrics.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS Foundation source.
Before you start
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key information to prepare
| Preparation field | What to capture | Evidence hint | Owner |
|---|---|---|---|
| Responsible governance body(s) or individual(s) | Identify the governance body(s) or individual(s) responsible for oversight of sustainability-related risks and opportunities. | Current approved records and review evidence supporting responsible governance body(s) or individual(s). | Sustainability reporting / relevant process owner |
| Responsibilities in governance documents | Explain how responsibilities are reflected in terms of reference, mandates, role descriptions and related policies. | Current approved records and review evidence supporting responsibilities in governance documents. | Sustainability reporting / relevant process owner |
| Skills and competencies | Explain how the body(s) or individual(s) determines whether appropriate skills and competencies are available or will be developed. | Current approved records and review evidence supporting skills and competencies. | Sustainability reporting / relevant process owner |
| Information flow and frequency | Explain how and how often the body(s) or individual(s) is informed about sustainability-related risks and opportunities. | Current approved records and review evidence supporting information flow and frequency. | Sustainability reporting / relevant process owner |
| Strategy, major transactions, risk management and trade-offs | Explain how sustainability-related risks and opportunities are taken into account when overseeing strategy, decisions on major transactions and risk management processes and related policies, including associated trade-offs. | Current approved records and review evidence supporting strategy, major transactions, risk management and trade-offs. | Sustainability reporting / relevant process owner |
| Targets, progress and remuneration | Explain how target-setting and progress are overseen, including whether and how related performance metrics are included in remuneration policies. | Current approved records and review evidence supporting targets, progress and remuneration. | Sustainability reporting / relevant process owner |
How to prepare it
Request the data
Request the disclosure evidence
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
Please provide the current governance documentation showing all body(s) or individual(s) responsible for oversight of sustainability-related risks and opportunities; how responsibilities are reflected in governance documents; how skills and competencies are assessed or developed; how and how often they are informed; how they oversee strategy, major transactions and risk management including trade-offs; and how they oversee targets, progress and related remuneration metrics.
Use the organisation's own role and document names, but preserve the defined IFRS / ISSB terms and the scope described above.
Better request
Please provide the current governance documentation showing all body(s) or individual(s) responsible for oversight of sustainability-related risks and opportunities; how responsibilities are reflected in governance documents; how skills and competencies are assessed or developed; how and how often they are informed; how they oversee strategy, major transactions and risk management including trade-offs; and how they oversee targets, progress and related remuneration metrics.
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
Identify all responsible governance body(s) or individual(s). Explain responsibilities in governance documents, skills and competency arrangements, information flows and frequency, oversight of strategy, major transactions and risk management including trade-offs, and oversight of targets, progress and related remuneration metrics.
Context note
Apply IFRS S1.27(a) using the exact paragraph scope and cross-references stated in the official IFRS source.
Download Centre
Preparation tools & forms
Professional preparation tools for s1-27-a — free with verified email access. Enter the code we send you once and use downloads, report links and the LRA AI Assistant for 24 hours.
Assurance readiness
For each claim, check the evidence
| Claim | Risk | Evidence to check |
|---|---|---|
| Identified all responsible governance body(s) or individual(s). | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
| Explained how responsibilities are reflected in governance documents and policies. | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
| Explained how appropriate skills and competencies are determined or developed. | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
| Explained how and how often they are informed. | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
| Explained oversight of strategy, major transactions and risk management including trade-offs. | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
| Explained oversight of target-setting, progress and related remuneration metrics. | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
Evidence pack to prepare
Common reporting gaps
Ask the Study Studio AI Assistant about this disclosure
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Framework references
Relevant IFRS / ISSB requirements and related disclosures
Available framework references and nearby disclosures relevant to preparing this requirement.
IFRS / ISSB
s1-27-a
within IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information
Related & explore
More in IFRS S1 → Browse full catalogue → Disclosure Library home → Search all disclosures →
Go deeper · s1-27-a
Learn to prepare this disclosure end-to-end
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.
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