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ISSB Training Partner IFRS S1 · General Requirements for Disclosure of Sustainability-related Financial Information · Paragraph 27(a)

Governance body or individual oversight

s1-27-a · mandatory · narrative disclosure

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.

Legal status

IFRS S1 and IFRS S2 were issued in June 2023 and are effective for annual reporting periods beginning on or after 1 January 2024.

Disclosure focus

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.

Prepare

What to collect before drafting

Tick each field as the evidence lands. Owners are the teams that usually hold the source files.

  • Responsible governance body(s) or individual(s)

    Sustainability reporting / relevant process owner

    Identify the governance body(s) or individual(s) responsible for oversight of sustainability-related risks and opportunities.

    Evidence Current approved records and review evidence supporting responsible governance body(s) or individual(s).

    Watch for The published response for responsible governance body(s) or individual(s) is incomplete or does not match the supporting records.

  • Responsibilities in governance documents

    Sustainability reporting / relevant process owner

    Explain how responsibilities are reflected in terms of reference, mandates, role descriptions and related policies.

    Evidence Current approved records and review evidence supporting responsibilities in governance documents.

    Watch for The published response for responsibilities in governance documents is incomplete or does not match the supporting records.

  • Skills and competencies

    Sustainability reporting / relevant process owner

    Explain how the body(s) or individual(s) determines whether appropriate skills and competencies are available or will be developed.

    Evidence Current approved records and review evidence supporting skills and competencies.

    Watch for The published response for skills and competencies is incomplete or does not match the supporting records.

  • Information flow and frequency

    Sustainability reporting / relevant process owner

    Explain how and how often the body(s) or individual(s) is informed about sustainability-related risks and opportunities.

    Evidence Current approved records and review evidence supporting information flow and frequency.

    Watch for The published response for information flow and frequency is incomplete or does not match the supporting records.

  • Strategy, major transactions, risk management and trade-offs

    Sustainability reporting / relevant process owner

    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.

    Evidence Current approved records and review evidence supporting strategy, major transactions, risk management and trade-offs.

    Watch for The published response for strategy, major transactions, risk management and trade-offs is incomplete or does not match the supporting records.

  • Targets, progress and remuneration

    Sustainability reporting / relevant process owner

    Explain how target-setting and progress are overseen, including whether and how related performance metrics are included in remuneration policies.

    Evidence Current approved records and review evidence supporting targets, progress and remuneration.

    Watch for The published response for targets, progress and remuneration is incomplete or does not match the supporting records.

Before you start

  • Have we identified all responsible governance body(s) or individual(s)? Can we explain how their responsibilities are reflected in governance documents, how they determine the availability or development of skills and competencies, 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 remuneration metrics?
+ Show s1-27-a sub-elements (LRA working checklist)

How to prepare it

Identify all responsible governance body(s) or individual(s).
Gather applicable terms of reference, mandates, role descriptions and related policies.
Document the process for determining available or required skills and competencies.
Document how and how often each responsible body or individual is informed.
Document oversight of strategy, major transactions and risk management, including trade-offs.
Document target-setting, progress monitoring and remuneration-policy links.
Separate governance oversight from management’s role.
Reconcile the final disclosure with current governance records.

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

Download preparation tools for s1-27-a with free verified email access for 24 hours. Source-report links remain public.

Free · Email access

Check

For each claim, check the evidence

  • Identified all responsible governance body(s) or individual(s).

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Explained how responsibilities are reflected in governance documents and policies.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Explained how appropriate skills and competencies are determined or developed.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Explained how and how often they are informed.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to 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.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Explained oversight of target-setting, progress and related remuneration metrics.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

Evidence pack to prepare

Common reporting gaps

  • Shared responsibilities not identified.
  • Documents do not reflect disclosed responsibilities.
  • Training listed without competency determination.
  • Frequency disclosed without explaining how information is received.
  • Major transactions, related policies or trade-offs omitted.
  • Target progress or remuneration metrics omitted.
  • Management role merged with governance oversight.
  • Boilerplate board-oversight statement.
✓ Knowledge Hub AI Assistant · Human-in-the-loop
Dr Ross Kurinko

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Framework references

Relevant IFRS / ISSB requirements and related disclosures

IFRS / ISSB

s1-27-a

within IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information

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