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

Management’s role in governance processes, controls and procedures

s1-27-b · 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.

Start preparing ↓ Official IFRS Foundation source ↗

Disclosure focus

This disclosure requires the entity to explain management’s role in governance processes, controls and procedures used to monitor, manage and oversee sustainability-related risks and opportunities; whether that role is delegated to a specific management-level position or committee and how it is overseen; and whether management uses controls and procedures to support oversight and how they are integrated with other internal functions.

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.

  • Management’s role

    Sustainability reporting / relevant process owner

    Describe management’s role in governance processes, controls and procedures used to monitor, manage and oversee sustainability-related risks and opportunities.

    Evidence Current approved records and review evidence supporting management’s role.

    Watch for The published response for management’s role is incomplete or does not match the supporting records.

  • Delegation and oversight

    Sustainability reporting / relevant process owner

    State whether the role is delegated to a specific management-level position or management-level committee and, if so, identify it and explain how oversight is exercised over it.

    Evidence Current approved records and review evidence supporting delegation and oversight.

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

  • Management controls and procedures

    Sustainability reporting / relevant process owner

    State whether management uses controls and procedures to support oversight and describe them where applicable.

    Evidence Current approved records and review evidence supporting management controls and procedures.

    Watch for The published response for management controls and procedures is incomplete or does not match the supporting records.

  • Integration with other internal functions

    Sustainability reporting / relevant process owner

    If such controls and procedures are used, explain how they are integrated with other relevant internal functions.

    Evidence Current approved records and review evidence supporting integration with other internal functions.

    Watch for The published response for integration with other internal functions is incomplete or does not match the supporting records.

Before you start

  • Can we describe management’s role? Is it delegated to a specific management-level position or committee and, if so, how is oversight exercised? Does management use controls and procedures to support oversight and, if so, how are they integrated with relevant internal functions? Have we separated these arrangements from governance-body oversight and the reporting-production workflow?
＋ Show s1-27-b sub-elements (LRA working checklist)

How to prepare it

Identify management’s actual governance role.
Determine whether it is delegated.
Identify the management-level position or committee and oversight arrangement.
Identify management controls and procedures supporting oversight.
Explain integration with relevant internal functions.
Separate governance oversight, management role, ERM integration and reporting controls.
Gather role, delegation, process and operating evidence.
Verify against IFRS S1.27(b)(i)–(ii).

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 documentation showing management’s role in monitoring, managing and overseeing sustainability-related risks and opportunities; whether it is delegated to a specific management-level position or committee; how oversight is exercised over that role; the controls and procedures management uses; and how those arrangements are integrated with relevant internal functions.

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 documentation showing management’s role in monitoring, managing and overseeing sustainability-related risks and opportunities; whether it is delegated to a specific management-level position or committee; how oversight is exercised over that role; the controls and procedures management uses; and how those arrangements are integrated with relevant internal functions.

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

Describe management’s role; state whether it is delegated and identify the position or committee; explain oversight over the delegated role; state whether controls and procedures are used and explain integration with other relevant internal functions.

Context note

Apply IFRS S1.27(b) 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-b with free verified email access for 24 hours. Source-report links remain public.

Free · Email access
01XLSPrep & Assurance workbookDatapoints, risks, evidence to check, owner and evidence pack.Get it free ↧ 02XLSData-request packRequest email, message template, response fields and sign-off structure.Get it free ↧ 03PDFLibrary CardPrintable one-page summary of this disclosure card.Get it free ↧

Check

For each claim, check the evidence

  • Management’s role is described.

    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.

  • Delegation to a specific management-level position or committee is stated and identified where applicable.

    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.

  • Oversight over the delegated role is explained.

    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.

  • Controls and procedures and their integration with other internal functions are explained.

    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

  • Reporting workflow instead of governance role.
  • Board committee misclassified.
  • Data owner misclassified.
  • Delegation assumed but not stated.
  • Oversight not explained.
  • Reporting control used as climate/sustainability oversight control.
  • Functions merely listed.
  • Internal audit ownership overstated.
  • Management and governance merged.
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Dr Ross Kurinko

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Framework references

Relevant IFRS / ISSB requirements and related disclosures

IFRS / ISSB

s1-27-b

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

Open official source →

Guides that settle this question

Are IFRS S1 and IFRS S2 Mandatory? →Can One Climate Dataset Support UK SRS S2, IFRS S2, ESRS E1, TCFD and CDP? →Can One Dataset Support IFRS S1/S2, ESRS, GRI and CDP? →Choosing topics and metrics under IFRS S1 and S2 →

Related & explore

Fair presentation →Materiality →Reporting entity →Connected information →Core content architecture →Browse all disclosures →

More in IFRS S1 →Browse full catalogue →Search all disclosures →

How this library is built 1,211 published reports indexed 315,012 pages with page-level citations 272 published cards in the active catalogue
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