Disclosure focus
This disclosure asks an organisation to explain how sustainability-related matters are affecting, or could affect, its financial position, performance and cash flows. In practice, the report should focus on the effects that are material to the business, not just general commentary on sustainability topics. It should show both what is happening now and what is reasonably expected to happen in the future, using clear links to the organisation’s financial reporting where possible.
The practical emphasis is on coverage across the organisation, not only on a few headline sites or projects. An organisation should think about the full scope of its operations, value chain and time horizon, then describe where the effects arise, how significant they are, and what assumptions or estimates sit behind them. The aim is to help readers understand the financial implications of sustainability-related risks and opportunities in a way that is decision-useful and comparable.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS source.
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key datapoints to prepare
＋ Show s1-34-37 sub-elements (LRA working checklist)
Describe how the matter is affecting the organisation’s finances, results and cash today.
Set out the changes you expect in future profits and cash generation.
Explain the changes you expect in the organisation’s financial position.
Summarise any planned investments or disposals.
State where the organisation expects to obtain funding.
Flag any risks that could lead to a material adjustment in the next annual reporting period.
Use either one figure or a range, as appropriate.
How to prepare it
1Start by deciding which parts of the business the disclosure will cover, so the same boundary is used for every figure and narrative point.
2Set out what each item means in practice: the present effect on finances and cash, the changes you expect in future, the planned spending or asset moves, the intended funding route, and any risk that could lead to a material update in the next reporting year.
3Gather support for each point before drafting, including management papers, forecasts, budgets, approvals, financing plans, and any other records that show how the conclusion was reached.
4Prepare the disclosure using the required format for each item, giving either a single amount or a range where that is the chosen presentation, and make sure the numbers or narrative match the underlying evidence.
5Record any exclusions, assumptions, changes in method, or shifts in scope so a reviewer can see what was left out, what changed, and why the final disclosure still makes sense.
6Check the draft back against the official source and the supporting records to confirm nothing required has been missed, the wording still reflects the evidence, and the final version is consistent throughout.
Request the data
Request the financial impact inputs from Finance
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
What current and expected financial impacts, related plans, funding, and near-term adjustment risks should we capture for this reporting period?
Use your organisation’s own finance and planning language first, then map it to the reporting disclosure. For example, ask for budget, forecast, capex, opex, impairment, liquidity, or project pipeline terms that your teams already use, rather than framework wording.
Weak request
Please provide the IFRS-S1 current and anticipated financial effects information, including the current effect on financial position, performance and cash flows, expected changes to financial performance and cash flows, expected changes to financial position, investment/disposal plans, planned funding sources, risks with significant risk of material adjustment within the next annual reporting period, and whether to use a single amount or range.
Why it fails: It repeats framework language, bundles too many concepts into one sentence, and does not tell the owner what internal records to pull or how to present the information in their own working terms. That makes it harder to answer quickly and increases the chance of inconsistent responses.
Better request
Please send the finance and planning view for [business area] covering [period]: what has already affected results, cash, or balance sheet items; what is expected to change in forecast results, cash, or balance sheet items; any planned spend, asset sales, or other investment/disposal activity; the intended funding source; and any items that could move materially in the next annual reporting period. Use your normal budget/forecast/project terms and include the source pack or model extract, plus whether each item is best shown as a single figure or a range.
Industry examples
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
Explain how the figures were built, including the definitions used, the assumptions applied, and whether each amount is shown as one figure or as a range.
Context note
Set out what the numbers mean for the business by linking the current effect, the expected future impact on profit, cash and financial position, and the related investment and funding plans.
Fluctuation statement
Highlight the main reasons for any notable movement from one period to the next, especially where changes in assumptions, planned transactions, or estimate uncertainty have affected the figures.
Content index entry
s1-34-37 Current and anticipated financial effects — [location / page] / [notes]
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Preparation tools & forms
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
Figures are stated without the supporting narrative, or narrative without figures.Scope is inconsistent between the text and the numbers.The reporting boundary is left undefined.Material changes since the previous period are not disclosed.Estimates and measured values are not distinguished.Source records for the figures are not identified.
Common gaps
Mistakes to avoid when collecting the data
Wrong owner, wrong language
The team asks for the figures using framework terms instead of the business’s own labels, so the person who holds the source records does not recognise what is being requested.
Scope left vague
No one agrees which business units, assets, projects, or plans sit inside the data pull, so different teams send different populations.
Period basis not fixed
The request does not pin down whether the numbers relate to the current reporting cycle or the next annual cycle, so the same item is captured on different timing bases.
Current and future effects mixed together
People combine present-day impacts with expected changes in one file, which makes it impossible to separate what has already happened from what is only anticipated.
Position, performance, and cash flow blended
The collector merges balance-sheet items, profit-and-loss impacts, and cash movements into one total, so the original financial effect is no longer traceable.
Source labels stripped out
The extract is copied into a new spreadsheet without the original account names, project codes, or system tags, so the evidence trail back to source is lost.
Separate populations merged
Planned spending, planned disposals, and funding arrangements are rolled into one list even though they need to stay distinct for review.
Evidence details not captured
The file records the number but not the date, owner, system, or document reference behind it, so the team cannot show where it came from.
No sign-off trail
The data pack moves forward without a named reviewer and approval record, so nobody can show who checked the figures before they were used.
Where judgement is often needed
Set the reporting boundary when assets or operations move in or out
Decide whether to include only the business units and cash flows in place at the reporting date or also newly acquired, sold, or closed parts, and explain the cut-off used so readers can see why the figures changed.
Choose one country basis where local labels differ
Where the same operational issue is described differently across jurisdictions, map each local measure to one group-wide definition, state the basis used, and explain any exclusions or reclassifications.
Decide how to treat teams or sites near the scope line
For people, sites, contracts, or activities that sit just inside or just outside the boundary, set a consistent inclusion rule, apply it the same way across the group, and disclose the rule and any material exceptions.
Fix the timing point for current and forward-looking amounts
State whether the figures reflect the position at period end, an average over the period, or a later management view, and explain any lag between the event, the estimate, and the reported amount.
Separate measured amounts from management estimates
Show which numbers come from invoices, valuations, or other direct records and which are modelled, then explain the main assumptions, the level of uncertainty, and why the estimate is the best available basis.
Decide whether to show one figure or a range
If the effect could reasonably fall within more than one outcome, choose either a single amount or a band, explain why that presentation best reflects the evidence, and keep the basis consistent across similar items.
Round without obscuring the underlying movement
Use a rounding approach that does not hide a material change in financial position, performance, or cash flows, and disclose the rounding basis if it affects how the numbers should be read.
Aggregate sensitive data to protect privacy
Where detailed location, customer, employee, or supplier data could identify individuals or small groups, combine the information to a safer level, explain the aggregation rule, and make clear any effect on precision.
Link investment and funding plans to the same scope and timing
When describing planned spend, disposals, and funding sources, align the scope and timing with the rest of the disclosure, and explain any assumptions about when cash will be needed or received.
Flag risks that could move the numbers within the next year
Identify the exposures most likely to cause a material change in the next annual cycle, explain the basis for judging them significant, and distinguish them from longer-term uncertainties.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — manufacturing
We have recognised a £12 million charge this year from higher energy and logistics costs, and that has reduced operating profit and operating cash by the same amount. Looking ahead, we expect a further £8 million to £14 million hit to profit and cash over the next 12 months, with a possible £3 million to £5 million adjustment to the carrying value of plant and inventory if demand weakens; to respond, we plan £9 million of equipment upgrades and one small site disposal, funded £6 million from existing cash and £3 million from a committed bank facility.
This example shows how to describe the period’s effect, the likely near-term financial impact, the balance-sheet implications, planned capital actions, and where the money will come from, while also flagging a possible material adjustment in the next annual cycle. The figures are synthetic and internally consistent.
Illustrative (synthetic) example — retail
Our group recorded a £4 million reduction in gross margin and a £2 million increase in store closure costs this year, which together lowered profit and operating cash by £6 million. We expect a £5 million to £9 million decline in profit and cash over the coming year, plus a £1 million to £4 million write-down of lease-related assets if trading stays soft; in response, we intend to open two smaller-format stores and exit three underperforming sites, with £7 million of funding from cash on hand and £2 million from asset sales.
This example covers the current-year effect, the expected near-term movement in results and cash, the likely balance-sheet change, the planned investment and disposal actions, the funding mix, and the risk of a significant adjustment in the next reporting period. The example is synthetic and the amounts are internally consistent.
How companies report S1-34-37 in practice
Real reports where this topic is disclosed. These are report practice, not exact disclosure templates to copy.
SITC International Holdings Company Limited
Water Transportation · Hong Kong · 2025
SITC International Holdings Company Limited’s 2025 Environmental, Social and Governance Report does not provide clear disclosures on the current or expected effects of climate-related risks and opportunities on its financial position, performance, or cash flows, as no quotable evidence was found in the report (no page). There is some unclear context on investment disposal plans related to managing or decommissioning carbon-, energy-, or water-intensive operations on page 193, but this does not constitute a clear disclosure. Other datapoints such as planned funding sources and narrative explanations are also not found in the report.
Enel Chile S.A.
Electric Utilities / IPP / Energy Traders · Chile · 2025
Enel Chile's 2025 Integrated Annual Report includes a covered datapoint on investment disposal plans, detailing the Investment Plan for 2026-2028 on page 368. There is unclear information regarding expected changes to the financial position on page 111, where financial objectives and net debt evolution are mentioned but not clearly disclosed. Notably, the report lacks evidence on the current effect on financial position, performance, and cash flows, expected changes to financial performance and cash flows, planned funding sources, and the use of a single amount or range.
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Scenarios to work through
A manufacturer has already spent £12 million to retrofit one site after a climate-related incident, and finance has booked the cost in the current year. The team is drafting the sustainability note and wants to mention that the spend affected profit and cash.
QHow should the team decide whether to describe that present-day impact, and what should they cover?
Reveal model answer →Hide answer ↑They should include the effect that is already showing up in the accounts and explain it in business terms: what changed in the balance sheet, profit or loss, and cash movement. If they use a figure, it should be a single amount or a range that matches the evidence and is internally consistent with the £12 million spend.
Why this matters · Describe the effect that has already flowed through the financial statements, using evidence-backed amounts where a number is given.
A retailer expects to close two stores next year because of water-stress risks at the sites. Management has a draft plan showing £8 million of closure costs and £3 million of lease exit payments, but the board has not yet approved the final plan.
QWhat should the preparer do when explaining the likely future effect on profit and cash, and how should they handle the uncertainty?
Reveal model answer →Hide answer ↑They should explain the expected change to future earnings and cash outflows in plain language, and make clear that the estimate is still subject to change if the plan is not yet final. The narrative should reflect the current best view, and any amount or range used should be supported by the draft plan and add up consistently, such as a total future outflow of £11 million if that is the figure being presented.
Why this matters · Future profit and cash impacts should be described as an estimate based on the best available plan, with uncertainty made clear.
A utility expects to replace ageing equipment over the next three years because of heat-related disruption. The project team has identified £24 million of capital spending, funded by £10 million of cash on hand and a £14 million green loan, but the finance team is unsure whether to mention the funding mix in the disclosure.
QShould the funding plan be included, and what level of detail is useful?
Reveal model answer →Hide answer ↑Yes. The disclosure should explain how the planned spending is expected to be financed, because the funding source helps readers understand the future financial effect. A clear breakdown such as £10 million from existing cash and £14 million from borrowing is useful if it matches the project plan and the totals reconcile to the £24 million investment.
Why this matters · Where future spending is described, also explain how it is expected to be paid for.
A food producer has identified a drought-related supply risk that could force a write-down of inventory and a contract penalty in the next reporting year. The estimate could move by a wide margin, and management is debating whether to leave it out because the amount is not fixed.
QHow should the team judge whether to disclose the risk, and what should they say about the possible adjustment?
Reveal model answer →Hide answer ↑They should disclose it if there is a significant chance that the estimate could change materially within the next annual reporting period. The note should explain the nature of the risk and the possible effect on the numbers, even if the amount is not exact yet; if a figure is used, it should be a single amount or a range that is consistent with the underlying evidence and the wider story.
Why this matters · If a risk could materially change the numbers in the next year, it belongs in the disclosure even when the estimate is still uncertain.
Framework references
Related framework references
How this disclosure maps across the major reporting frameworks.
IFRS / ISSB
s1-34-37
within IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information
Open official source →Related & explore
FAQ
Questions this page answers
For s1-34-37, what data do I need to gather before I start drafting the disclosure?+−
The page says to prepare seven datapoints: current financial impact, future profit and cash impact, future balance sheet impact, planned asset actions, funding plan sources, material error risks, and the amount basis choice. Use those as the starting checklist before you draft anything.
How do I use the step-by-step 'how to prepare' section for s1-34-37?+−
Use it as a practical sequence for getting from raw information to a draft disclosure. The page is designed to help you set scope, collect the right data, and turn that into a report-ready narrative.
What should I include in the evidence pack for s1-34-37 if I want to be assurance-ready?+−
The page includes a five-item evidence pack for assurance readiness, so you should build your support file around those items rather than relying on the draft alone. It is meant to help you show where the numbers and narrative came from.
What are the six assurance claims I need to verify for s1-34-37?+−
The page says there are six assurance claims to check, each with a claim, risk and evidence angle. Use that section to test whether your draft is supported and whether the underlying evidence is strong enough for review.
What are the common reporting gaps or mistakes on the s1-34-37 page, and how do I avoid them?+−
The page lists common gaps and mistakes to watch for, so it is worth using that section as a pre-submission check. It is there to help you spot missing data, weak support, or unclear drafting before the disclosure is finalised.
How do I use the synthetic example disclosure for s1-34-37 without copying it into my report?+−
The example is there to show how the disclosure can be structured and how the quantitative table can look. Treat it as a pattern to adapt to your own facts, not as wording to reuse.
What does the draft-output section give me for s1-34-37, and how can I turn it into a first draft?+−
The page offers visualisation ideas, narrative starters and a content-index line to help you shape the disclosure. Those pieces are intended to help you move from collected data to a draft narrative and a clean report structure.
How do I use the Prep & Assurance workbook for s1-34-37?+−
The Download Centre includes a Prep & Assurance workbook in .xlsx format, which is meant to support preparation and assurance readiness. Use it to organise the datapoints, evidence and review trail before you draft.
What is the printable Library Card PDF for s1-34-37 for?+−
The Download Centre also includes a printable Library Card in PDF format. It is a practical companion to the page content, useful if you want a quick reference while collecting data or reviewing the draft.
Can I reuse data from ESRS 2 (General Disclosures) for s1-34-37?+−
The page says the closest ESRS correspondence is ESRS 2 (General Disclosures), so that is the relevant cross-reference to check. You can treat it as potentially reusable data, but the page does not say the requirements are identical.
What kind of published company reports does the 'From company reports' table point me to for s1-34-37?+−
The page includes a table linking to real published reports at the pages where the topic is disclosed. Use it as a reference point for seeing how others have presented similar information in practice.
More questions this page can help with
s1-34-37 disclosure checklist: what should I collect before drafting?s1-34-37 evidence pack: what do I need for assurance review?s1-34-37 common mistakes and reporting gapss1-34-37 workbook download how to uses1-34-37 library card pdf downloads1-34-37 synthetic example disclosure tables1-34-37 narrative starters and content index lines1-34-37 current financial impact future cash impact balance sheet impacts1-34-37 planned asset actions funding plan sourcess1-34-37 material error risks amount basis choices1-34-37 ESRS 2 correspondence reusable datas1-34-37 how to turn data into a draft disclosure
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