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 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.
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 |
|---|---|---|---|
| Management’s role | Describe management’s role in governance processes, controls and procedures used to monitor, manage and oversee sustainability-related risks and opportunities. | Current approved records and review evidence supporting management’s role. | Sustainability reporting / relevant process owner |
| Delegation and oversight | 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. | Current approved records and review evidence supporting delegation and oversight. | Sustainability reporting / relevant process owner |
| Management controls and procedures | State whether management uses controls and procedures to support oversight and describe them where applicable. | Current approved records and review evidence supporting management controls and procedures. | Sustainability reporting / relevant process owner |
| Integration with other internal functions | If such controls and procedures are used, explain how they are integrated with other relevant internal functions. | Current approved records and review evidence supporting integration with other internal functions. | 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 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
Professional preparation tools for s1-27-b — 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 |
|---|---|---|
| Management’s role is described. | The published response does not support this human-reviewed assurance 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. | The published response does not support this human-reviewed assurance check. | Trace the statement to current approved records and the official IFRS source. |
| Oversight over the delegated role is explained. | The published response does not support this human-reviewed assurance 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. | 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-b
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-b
Learn to prepare this disclosure end-to-end
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