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ISSB Training Partner IFRS S1 · General Requirements for Disclosure of Sustainability-related Financial Information · Paragraph 43

Risk management disclosure objective

s1-43 · mandatory · narrative disclosure

The objective is to enable users to understand: (a) the entity’s processes to identify, assess, prioritise and monitor sustainability-related risks and opportunities, including whether and how those processes are integrated into and inform the entity’s overall risk profile and overall risk management process; and (b) the entity’s overall risk profile and overall risk management process.

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 page should explain the two-part risk management disclosure objective and map preparers to paragraph 44. It should help users understand the entity’s risk and opportunity processes, their integration into overall risk management, and the entity’s overall risk profile and overall risk management process.

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.

  • Risk and opportunity processes

    Sustainability reporting / relevant process owner

    IFRS S1.44(a)–(b): identify, assess, prioritise and monitor.

    Evidence Current approved records and review evidence supporting risk and opportunity processes.

    Watch for The published response for risk and opportunity processes is incomplete or does not match the supporting records.

  • Integration with overall risk management

    Sustainability reporting / relevant process owner

    IFRS S1.44(c): extent to which and how processes are integrated into and inform overall risk management.

    Evidence Current approved records and review evidence supporting integration with overall risk management.

    Watch for The published response for integration with overall risk management is incomplete or does not match the supporting records.

  • Overall risk profile and process

    Sustainability reporting / relevant process owner

    Information enabling users to assess the entity’s overall risk profile and overall risk management process.

    Evidence Current approved records and review evidence supporting overall risk profile and process.

    Watch for The published response for overall risk profile and process is incomplete or does not match the supporting records.

Before you start

  • Do the paragraph 44 disclosures enable users to understand the entity’s processes for risks and opportunities, their integration into overall risk management, and the entity’s overall risk profile and overall risk management process?
+ Show s1-43 sub-elements (LRA working checklist)

How to prepare it

Treat paragraph 43 as an objective.
Prepare risk processes under 44(a).
Prepare opportunity processes under 44(b).
Prepare integration under 44(c).
Review whether users can assess overall risk profile and risk management.
Check connected information and materiality.
Avoid separate coverage figures or methodology datapoints.

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 substantive disclosures and evidence for IFRS S1.44(a)–(c), together with information showing how the combined processes and integration help users understand the entity’s overall risk profile and overall risk management process.

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 substantive disclosures and evidence for IFRS S1.44(a)–(c), together with information showing how the combined processes and integration help users understand the entity’s overall risk profile and overall risk management process.

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

Map the disclosure to IFRS S1.44(a), 44(b) and 44(c), and verify that the combined information satisfies both components of the paragraph 43 objective.

Context note

Apply IFRS S1.43 using the exact paragraph scope and cross-references stated in the official IFRS source.

Download Centre

Preparation tools & forms

Download preparation tools for s1-43 with free verified email access for 24 hours. Source-report links remain public.

Free · Email access

Check

For each claim, check the evidence

  • The disclosure addresses risk and opportunity processes accurately and completely.

    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.

  • The disclosure addresses integration with overall risk management accurately and completely.

    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.

  • The disclosure addresses overall risk profile and process accurately and completely.

    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

  • Paragraph 43 treated as three datapoints.
  • Opportunities omitted.
  • Process details not mapped to paragraph 44.
  • Integration confused with governance or strategy.
  • Generic ERM description without sustainability processes.
  • Overall risk profile not understandable.
✓ 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

s1-43

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

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Guides that settle this question

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