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IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information·Paragraph 32

Business model and value chain effects

Practical guidance for preparing this disclosure. Use this card to identify the information to prepare, verify claims and organise supporting evidence. For exact requirements, always refer to the official IFRS Foundation source.

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.

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Published passport

Last reviewed 2026-07-30
RK Reviewed by Dr Ross KurinkoLinkedIn Strategic ESG Advisor · IFRS S1 & S2 / GRI / ESRS expert GRI Certified Global Trainer · PhD, University of Cambridge · ESG-AI expert 15+ years on FTSE 100 & Fortune Global 500 disclosures Canary Wharf, London LRA educational guidance · Not issued or endorsed by IFRS Foundation

Standard

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

Paragraph 32 · Issued 2023 · Effective from 1 January 2024

Effective

2024-01-01

Official source: Open ↗

Last reviewed

2026-07-30

LRA educational guidance · Not issued or endorsed by IFRS Foundation

To prepare this disclosure
4LRA preparation fields 5claims to verify 1evidence areas

Disclosure focus

An entity shall disclose information that enables users to understand the current and anticipated effects of sustainability-related risks and opportunities on the entity’s business model and value chain, including where those risks and opportunities are concentrated.

This disclosure explains current and anticipated effects of sustainability-related risks and opportunities on the entity’s business model and value chain and where those risks and opportunities are concentrated. Concentration categories should be entity-specific; geography, facilities, assets, financing channels, suppliers, products or customers may be relevant but are not universally mandatory.

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
Current and anticipated effects Describe current and anticipated effects on the business model and value chain. Current approved records and review evidence supporting current and anticipated effects. Sustainability reporting / relevant process owner
Concentrations of risks and opportunities Describe where risks and opportunities are concentrated. Current approved records and review evidence supporting concentrations of risks and opportunities. Sustainability reporting / relevant process owner
Related risk or opportunity — supporting field Link each effect/concentration to the paragraph 30 matter. Current approved records and review evidence supporting related risk or opportunity — supporting field. Sustainability reporting / relevant process owner
Relevant value-chain scope — supporting field Document the relevant interactions, resources and relationships. Current approved records and review evidence supporting relevant value-chain scope — supporting field. Sustainability reporting / relevant process owner
＋ Show s1-32 sub-elements (LRA working checklist)

How to prepare it

Start with paragraph 30 risks/opportunities.
Determine relevant business-model/value-chain scope for each matter.
Describe current effects.
Describe anticipated effects.
Identify concentrations using appropriate categories.
Link to paragraph 33 responses and paragraphs 34–40 financial effects.
Reassess scope after significant changes.
Verify evidence and materiality.

Request the data

Request the disclosure evidence

Translate the disclosure into an internal business question — then adapt it to your organisation's own language.

For each material sustainability-related risk or opportunity, provide its current and anticipated effects on the business model and value chain, where it is concentrated, the relevant operations/resources/relationships and supporting evidence. Use the concentration categories that best represent the matter.

Use the organisation's own role and document names, but preserve the defined IFRS / ISSB terms and the scope described above.

Better request

For each material sustainability-related risk or opportunity, provide its current and anticipated effects on the business model and value chain, where it is concentrated, the relevant operations/resources/relationships and supporting evidence. Use the concentration categories that best represent the matter.

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 current and anticipated effects and concentrations for both risks and opportunities. Link each disclosure to the identified matter and use relevant entity-specific concentration categories.

Context note

Apply IFRS S1.32 using the exact paragraph scope and cross-references stated in the official IFRS source.

Download Centre

Preparation tools & forms

Professional preparation tools for s1-32 — 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.

Free · Community members
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 ↧

Assurance readiness

For each claim, check the evidence

Claim Risk Evidence to check
Current and anticipated effects are described.The published response does not support this human-reviewed assurance check.Trace the statement to current approved records and the official IFRS source.
Current and anticipated information is clearly distinguished.The published response does not support this human-reviewed assurance check.Trace the statement to current approved records and the official IFRS source.
Concentrations of risks and opportunities are described using relevant categories.The published response does not support this human-reviewed assurance check.Trace the statement to current approved records and the official IFRS source.
Each effect/concentration links to an identified risk/opportunity.The published response does not support this human-reviewed assurance check.Trace the statement to current approved records and the official IFRS source.
Scope and assumptions are supported.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

List of risks without effects.
Only current or anticipated effects.
Planned actions presented as effects.
Risk-only concentration.
Geography/facility/asset as mandatory three fields.
Direct operations only.
Value chain limited to suppliers/customers.
One common boundary.
Percentages without narrative.
✓ LRA AI Assistant · Human-in-the-loop
Dr Ross Kurinko

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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

s1-32

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

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Go deeper · s1-32

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