Disclosure focus
This disclosure asks an organisation to explain the processes it uses to identify, assess and manage sustainability-related opportunities. In practice, that means describing how opportunity-related information is gathered, who is involved, how decisions are made, and how those processes are embedded in the organisation’s wider management approach.
The practical focus is on whether those processes cover the organisation as a whole, rather than only a few well-known sites, business units or projects. A useful explanation would show the scope of coverage, how consistently the process is applied across operations, and whether it is used to spot opportunities that could affect strategy, performance or future plans.
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 s1-44-b sub-elements (LRA working checklist)
Set out the criteria used to assess and rank the matters.
Name the main sources of information relied on.
Describe how you keep track of progress over time.
Explain how opportunities are identified in practice.
State which parts of the value chain are covered.
How to prepare it
1Set the boundary first: decide which parts of the business and which upstream or downstream activities you are covering, and record that scope clearly.
2Define the practical rules you used to sort and rank matters, so someone else can see how you judged what mattered most.
3List the main information inputs behind the disclosure, including the records, systems, reports, and other sources you relied on.
4Describe how you keep track of the relevant matters over time, including the method used to watch for changes and updates.
5Explain how you spot possible upside as well as downside, and show the process you used to identify opportunities.
6Before finalising, check the wording and scope against the official source, and note any exclusions, assumptions, or changes in approach so the basis is transparent.
Request the data
Request the process evidence for opportunity spotting and tracking
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
How does the business identify, assess, prioritise and monitor sustainability-linked opportunities, and what sources and scope does it use?
Use your organisation’s own terms first, then map them to the disclosure. For example, if your teams talk about growth themes, pipeline, watchlists, horizon scanning or value-chain coverage, use those labels in the request and only translate them afterwards for reporting. This is a training template; adapt it to your organisation and check the source text before sign-off.
Weak request
Please provide the sustainability opportunity process information for the disclosure.
Why it fails: It uses framework language, does not say which internal process details are needed, and gives no clues on the team’s own terminology, scope, sources or evidence format. That makes it hard for the owner to respond with usable material.
Better request
Please send your team’s current process note or tracker showing how you identify, rank and monitor growth or resilience opportunities, including the criteria used, the main files or systems you rely on, how often it is reviewed, and whether it covers only our own sites or also suppliers and customers. Use your normal internal labels, and I’ll map them for reporting.
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
Set out the practical basis for the assessment by explaining the scope chosen, the data inputs relied on, the way issues or opportunities were ranked, and how the review was monitored.
Context note
Explain what the figures mean in business terms, including which parts of the value chain were covered, what sources informed the assessment, and how the process was used to identify and prioritise opportunities.
Fluctuation statement
If the numbers changed from one period to the next, point to any shift in scope, data availability, review method, or prioritisation approach that would reasonably account for the movement.
Content index entry
s1-44-b Processes for sustainability-related opportunities — [location / page] / [notes]
Download Centre
Preparation tools & forms
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
The information is presented without a date or as-at point.The scope or boundary of the statement is left undefined.Key terms are used inconsistently across the report.Material changes since the previous period are not disclosed.Assertions are made without supporting detail or a source record.Boilerplate is used that does not actually answer what is asked.
Common gaps
Mistakes to avoid when collecting the data
Wrong owner, wrong language
The request goes to a team that does not run the process, and it is framed in framework terms instead of the organisation’s own operational language.
Scope left undefined
People collect a description without first agreeing which business units, activities, or parts of the value chain are in scope.
Boundary not pinned down
The team mixes together in-house operations and external parts of the chain without stating where the process starts and stops.
Wrong period basis
The data is pulled for a different reporting window or cut-off date than the one used for the rest of the pack.
Counting bases mixed
One source is counted by cases, another by sites or projects, and the totals are merged without converting them to the same basis.
Source labels lost
Original file names, system tags, or register labels are stripped out, so the team cannot trace each figure back to its starting point.
Separate populations merged
Different opportunity types or business segments are rolled into one file even though they should be kept apart for review.
Evidence details missing
The pack shows the numbers but not the supporting date, owner, version, or source note needed to check where they came from.
No sign-off trail
Drafts move forward without a named reviewer or approval record, so no one can show who checked the data before it was used.
Where judgement is often needed
Acquisitions and disposals during the year
Set out whether newly bought or sold businesses were included in the review period, and explain any cut-off date used so readers can see how the process changed across the year.
Different local labels for the same issue
Where country teams use different names or definitions for the same opportunity theme, explain the mapping you used and disclose the basis for grouping them into one internal process.
Borderline activities near the chosen scope
State how you treated activities, sites, suppliers or customers that sit just inside or just outside the chosen value-chain boundary, and explain the rule used to include or exclude them.
Timing of the assessment cycle
If the review was run at a point in time rather than continuously, disclose the date or period covered and explain how later developments were handled in the narrative.
Measured information versus management estimate
When the process relies partly on hard data and partly on judgement-based estimates, identify which parts were observed and which were estimated, and explain the basis for the estimate.
Different data sources for the same topic
If teams used internal records, supplier input, market studies or other sources that do not fully align, explain which source was preferred, why it was chosen, and how conflicts were resolved.
Rounding and small-number treatment
If figures or counts are rounded, explain the rounding rule and make sure the rounded presentation still matches the underlying totals and any sub-totals.
Privacy limits on detailed reporting
Where personal or commercially sensitive information prevents a detailed breakdown, explain the level of aggregation used and confirm that the summary still shows how the process works in practice.
Changing the scope after a business reorganisation
If a restructure altered the parts of the business covered by the process, explain what changed, from when, and how you kept the comparison with prior periods understandable.
Mixed operating models across regions
When some regions run a central process and others use local procedures, describe the split, the reason for it, and how you combined the outputs into one group-level explanation.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — utilities
We rank climate-related matters by combining the size of the possible financial effect, how quickly the issue could affect operations, and how much control we have over the response. Our review draws on incident logs, asset-condition data, weather records, supplier reports, and management estimates, and we refresh it each quarter with a monthly watchlist for the highest-priority items. - We look across our own operations plus upstream fuel and equipment suppliers, with downstream use of our services included where it could change demand or resilience. - Opportunity ideas come from capital-planning workshops, efficiency reviews, and customer-service trends; in the latest cycle we screened 18 ideas, shortlisted 7, and advanced 3 into business cases. - The same process is used to spot risks and upside, then the board’s risk committee receives a summary of the scoring, the data inputs, and any changes in scope.
Synthetic illustration for practitioner review only; shows one way to describe how we decide what matters most, where the information comes from, how often we track it, how we surface upside, and which parts of the value chain are included.
Illustrative (synthetic) example — consumer goods
We decide what to focus on by scoring each topic against expected cash impact, likelihood of disruption, and how material the issue is to customers and brands. Our evidence base combines sales data, supplier questionnaires, audit findings, complaint trends, and scenario outputs, and we update the register every six months with targeted checks in between. - Our coverage extends to our factories, key raw-material suppliers, logistics partners, and the main customer-use stage where product performance could affect returns or reputation. - We generate upside ideas through product-design reviews, procurement savings sessions, and market scans; in the last round we assessed 24 ideas, kept 9 under review, and moved 4 into delivery plans. - Monitoring is led by the sustainability team with finance and operations input, and the results are reported to senior management together with the reasons each topic moved up or down the list.
Synthetic illustration for practitioner review only; shows a second, different way to explain prioritisation, evidence used, ongoing tracking, opportunity spotting, and the parts of the chain included in the assessment.
How companies report s1-44-b
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 covers the assessment and prioritisation criteria for sustainability-related risks and opportunities, describing how these processes are integrated into the overall risk management system (p.190). The report also details the opportunity identification process and its integration into risk management (p.179). However, it does not provide clear information on key data sources or the value chain scope used, and the monitoring approach is mentioned only in a related context without clear disclosure (p.195).
MTR Corporation
Ground Transportation — Railroads · Hong Kong · 2025
MTR Corporation’s Sustainability Report 2025 covers its assessment and prioritisation criteria, describing an annual process to identify, evaluate, and prioritise sustainability-related issues reflecting significant economic, environmental, and social impacts (p.13). The report also details an opportunity identification process involving SWOT analysis across operations and the value chain (p.7). However, the report provides unclear disclosures regarding key data sources (p.3), monitoring approach (p.7), and the specific value chain scope used (p.6).
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Scenarios to work through
A finance team has a short list of possible upside areas, but the notes only mention broad themes such as efficiency and customer demand. The sustainability lead has a workshop pack that shows how each idea was screened, which sources were used, and why some ideas were ranked ahead of others.
QShould the disclosure explain the screening and ranking approach in enough detail for a reader to see how the team moved from ideas to priorities?
Reveal model answer →Hide answer ↑Yes. The write-up should describe the practical criteria used to sort and compare the upside ideas, so a reader can understand how the team decided what mattered most. It should be clear enough to show the logic of the ranking, not just list the final priorities.
Why this matters · Explain the decision logic behind ranking upside ideas, not just the outcome.
A group preparing the report has used internal strategy papers, customer feedback, supplier discussions and market analysis to spot upside areas. One draft mentions only internal management papers because the team thinks external material is too detailed to summarise.
QShould the disclosure identify the main information sources that fed the opportunity work, even if some came from outside the organisation?
Reveal model answer →Hide answer ↑Yes. The disclosure should name the main sources that informed the opportunity assessment, whether they came from inside the business or from outside it. The point is to show what information the team relied on when spotting and assessing upside areas.
Why this matters · List the main inputs used to find and assess opportunities, including relevant external sources.
The sustainability team reviews its opportunity register every quarter, but only when a major event happens does it update the scoring. In practice, the team also checks whether the assumptions behind the scores still hold, using a mix of dashboard data and management review.
QShould the disclosure describe how the organisation keeps the opportunity process under review, including what triggers updates and what information is checked?
Reveal model answer →Hide answer ↑Yes. The disclosure should explain the way the organisation keeps watching for changes, including the routine review cycle and any event-driven updates. It should also show what information is used to test whether the earlier assessment still makes sense.
Why this matters · Describe how the organisation keeps its opportunity assessment under review and what prompts changes.
A manufacturer has identified upside from lower-emission products, but the team only looked at its own factories and sales data. The supply chain team says the biggest upside may sit with raw materials and customer use, yet those stages were left out of the analysis.
QShould the disclosure make clear whether the opportunity process covered only the organisation’s own operations or also parts of the wider value chain?
Reveal model answer →Hide answer ↑Yes. The disclosure should state the scope used for the opportunity work, so readers can see whether the assessment stayed within the organisation’s own activities or also extended to relevant upstream and downstream parts of the chain. If the wider chain was included, that should be clear; if not, the narrower scope should be clear too.
Why this matters · Be explicit about how far along the value chain the opportunity process looked.
Framework references
Related framework references
How this disclosure maps across the major reporting frameworks.
IFRS / ISSB
s1-44-b
within IFRS-S1: IFRS S1 - General Requirements for Disclosure of Sustainability-related Financial Information
Open official source →Related & explore
FAQ
Questions this page answers
How do I use the s1-44-b page to prepare a draft disclosure from scratch?+−
Start with the plain-language explainer and the step-by-step ‘how to prepare’ section, then work through the datapoints to prepare. The page is set up to help you move from scoping and evidence gathering to a draft output.
What information do I need to collect for s1-44-b before I can draft the disclosure?+−
The page says to prepare five datapoints: prioritisation criteria, core information sources, tracking method, opportunity spotting process, and value chain boundary. Use those as your collection checklist before drafting.
How should I decide the scope and methodology for s1-44-b on this page?+−
Use the page’s datapoints to define scope and method in a practical way: what criteria you used, which sources you relied on, how you track, how you spot opportunities, and where your value chain boundary sits. The page is designed to help you make those choices explicit in the draft.
Who should own the s1-44-b inputs in my organisation?+−
The page does not assign roles, but it is written for sustainability/ESG managers, HR or data owners, and assurance reviewers to coordinate. In practice, you can use it to split ownership across the five datapoints and the evidence pack items.
What evidence should I keep ready for assurance on s1-44-b?+−
The page includes five assurance claims to verify and an evidence pack with five items for assurance readiness. Use those sections to build a file that links each claim to the supporting evidence before review.
What are the most common mistakes to avoid when completing s1-44-b?+−
The page has a section on common reporting gaps and mistakes, so it is meant to help you spot weak scope, missing sources, unclear tracking, and incomplete evidence. Use that section as a pre-submission check against your draft.
How do I use the Prep & Assurance workbook for s1-44-b?+−
The Download Centre includes a Prep & Assurance workbook in .xlsx format, which is intended to support preparation and assurance readiness. Use it alongside the page’s step-by-step guidance and evidence pack to organise inputs and track completion.
What is the printable Library Card PDF for s1-44-b used for?+−
The Download Centre includes a printable Library Card in .pdf format, which you can use as a quick reference while drafting or reviewing the disclosure. It sits alongside the workbook and the page guidance rather than replacing them.
Can I use the synthetic example disclosure on s1-44-b as a template for my own draft?+−
Yes, but only as an illustrative guide. The page’s synthetic example disclosures show how the narrative and any quantitative table can be presented, so you should adapt the structure to your own data and keep the numbers internally consistent.
How do I turn the s1-44-b page content into a draft narrative and content index line?+−
Use the draft-output section, which includes visualisation ideas, narrative starters, and a content-index line. That section is there to help you convert the prepared datapoints and evidence into a first-pass disclosure.
How does the s1-44-b page relate to ESRS 2, and can I reuse the same data?+−
The page says the closest ESRS correspondence is ESRS 2 (General Disclosures). You can treat that as a useful cross-framework reference and reuse data where appropriate, but the page does not say the requirements are identical.
More questions this page can help with
What are the five datapoints to prepare for s1-44-b?Where do I find the step-by-step preparation guidance for s1-44-b?What should go into the evidence pack for s1-44-b assurance readiness?What are the five assurance claims to verify on the s1-44-b page?How do I use the common reporting gaps section to quality-check my s1-44-b draft?Does the s1-44-b page include a worked example with numbers?How do I use the narrative starters in the s1-44-b draft-output section?What is the content-index line for s1-44-b and how do I fill it in?Is there a downloadable checklist or workbook for s1-44-b preparation?Can the s1-44-b example disclosure be copied into my report?What published company reports are linked from the s1-44-b page?How should I map my s1-44-b data to ESRS 2 for reuse?
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