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ISSB Training Partner IFRS S1 · General Requirements for Disclosure of Sustainability-related Financial Information · Paragraph 32

Business model and value chain effects

s1-32 · mandatory · narrative disclosure

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.

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 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.

Prepare

What to collect before drafting

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

  • Current and anticipated effects

    Sustainability reporting / relevant process owner

    Describe current and anticipated effects on the business model and value chain.

    Evidence Current approved records and review evidence supporting current and anticipated effects.

    Watch for The published response for current and anticipated effects is incomplete or does not match the supporting records.

  • Concentrations of risks and opportunities

    Sustainability reporting / relevant process owner

    Describe where risks and opportunities are concentrated.

    Evidence Current approved records and review evidence supporting concentrations of risks and opportunities.

    Watch for The published response for concentrations of risks and opportunities is incomplete or does not match the supporting records.

  • Related risk or opportunity — supporting field

    Sustainability reporting / relevant process owner

    Link each effect/concentration to the paragraph 30 matter.

    Evidence Current approved records and review evidence supporting related risk or opportunity — supporting field.

    Watch for The published response for related risk or opportunity — supporting field is incomplete or does not match the supporting records.

  • Relevant value-chain scope — supporting field

    Sustainability reporting / relevant process owner

    Document the relevant interactions, resources and relationships.

    Evidence Current approved records and review evidence supporting relevant value-chain scope — supporting field.

    Watch for The published response for relevant value-chain scope — supporting field is incomplete or does not match the supporting records.

Before you start

  • For each material risk or opportunity, can we describe current and anticipated effects on the business model and value chain and where the matter is concentrated? Have we used the full value-chain concept and a risk-specific scope?
＋ 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

Download preparation tools for s1-32 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

  • Current and anticipated effects are 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.

  • Current and anticipated information is clearly distinguished.

    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.

  • Concentrations of risks and opportunities are described using relevant categories.

    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.

  • Each effect/concentration links to an identified risk/opportunity.

    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.

  • Scope and assumptions are supported.

    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

  • 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.
✓ 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

s1-32

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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