لخّصلي

Connecting the disclosures with the Financial disclosures where necessary Entity A, a pharmaceutical company, has been exposed to claims of unethical testing.Billers based on Taskforce for Climate-related Financial Disclosures (TCFD), Governance Information about the governance processes, controls and procedures a reporting entity uses to monitor and manage sustainability-related risks and opportunitties Risk management Information about how sustainability-related risks and opportunitles are Identified, assessed, prioritised and monitored and whether and how those processes are integrated into its overall risk management framework.Issues the IFS S IFRS $2 Climate-related Disclosures Objective: to disclose information about its exposure to climate-related risks and opportunities, enabling users of an entity's general-purpose financial reporting: Governance: The entity is required to disclose information about the governance body or bodies (which can include a board, committee or equivalent body charged with governance) with oversight of climate related risks and opportunities, and a description of management's role regarding climate-related risks and opportunities.What are the existing mostly used frameworks of Sustainability Reporting FRAMEWORK Description 1-Global Reporting GRI provides guidelines for organizations to report their environmental, Initiative (GRI): social, and governance performance.It is designed to facilitate users of general-purpose financial reports to consume sustainability-related financial information digitally, regulators to require the digital reporting of sustainability-related financial information, and preparers to implement digital reporting of sustainability-related financial information, enabling tagging without undue cost.Therefore, Entity B may need to explain how this strategy to achieve the target led to an increase in capital expenditure and possibly an impairment review of non-energy-efficient machinery, as well as lower (and less volatile) energy prices, increased revenue due to a related increased demand from its customers, and an increase in margins on sales.Entity B adopts a new strategy that involves shifting its procurement of energy to renewable sources and investing in more energy-efficient machinery.Recent development

IFRS $1 General Requirements for Disclosure of Sustainability-related Financial Information

IFRS S2 Climate-related Disclosures

Both became effective beginning on or after 1 January 2024

Next

The ISSB published the Proposed IFRS Sustainability Disclosure Taxonomy on 27 July 2023.Metrics and targets Information about how an entity measures, monitors and manages sustainability: related risks and opportunitles and assesses its performance, Inciuding progress towards the targets it has set.IFRS Foundation, and Boards A not-for-profit, public interest organization Aims to develop high-quality standards, understandable, enforceable and globally accepted accounting and sustainability disclosure.CDP focuses on reporting and disclosing companies' environmental impact, particularly in terms of carbon emissions.International Integrated Reporting Framework (IRC): 4.Disbanded.????

Connecting the disclosures with the Financial disclosures where necessary
Entity A, a pharmaceutical company, has been exposed to claims of unethical testing. Therefore, it may need to explain
how its strategic response has, or has not, led to the recognition of provisions and associated operating costs in its financial statements.
2 Entity B, an electronics manufacturer, has publicly announced a target of net zero for its corporate greenhouse gas emissions, primarily created during its manufacturing process. Entity B adopts a new strategy that involves shifting its procurement of energy to renewable sources and investing in more energy-efficient machinery. Therefore, Entity B may need to explain
how this strategy to achieve the target led to an increase in capital expenditure and possibly an impairment review of non-energy-efficient machinery, as well as lower (and less volatile) energy prices,
increased revenue due to a related increased demand from its customers, and an increase in margins on sales. What are the existing mostly used frameworks of Sustainability Reporting
FRAMEWORK
Description
1-Global Reporting
GRI provides guidelines for organizations to report their environmental,
Initiative (GRI):
social, and governance performance. Including human rights
2. Carbon Disclosure
Project (CDP):
3. International Integrated
Reporting Framework (IRC):
4. Task Force on Climate-related Financial
Disclosures (TCFD):
5. ????
CDP focuses on reporting and disclosing companies' environmental impact, particularly in terms of carbon emissions.
IRC focuses on integrating financial and non-financial information in corporate reporting to provide a more comprehensive view of an organization's performance.
It identifies six categories of capital which help an organization create value: financial, manufactured, intellectual, human, social and relationship, and natural.
TCFD provides recommendations for companies to disclose climate-related financial risks and opportunities.
Disbanded. IFRS Foundation to take over the monitoring of the progress of companies' climate-related disclosures. Recent development

IFRS $1 General Requirements for Disclosure of Sustainability-related
Financial Information

IFRS S2 Climate-related Disclosures

Both became effective beginning on or after 1 January 2024

Next

The ISSB published the Proposed IFRS Sustainability Disclosure
Taxonomy on 27 July 2023.

It is designed to facilitate users of general-purpose financial reports to consume sustainability-related financial information digitally, regulators to require the digital reporting of sustainability-related financial information, and preparers to implement digital reporting of sustainability-related financial information, enabling tagging without undue cost. Billers based on Taskforce for Climate-related Financial Disclosures (TCFD),
Governance
Information about the governance processes, controls and procedures a reporting entity uses to monitor and manage sustainability-related risks and
opportunitties
Risk management
Information about how sustainability-related risks and opportunitles are Identified, assessed, prioritised and monitored and whether and how those processes are integrated into its overall risk management framework.
Strategy
Information about an entity's strategy for managing sustainability related risks and opportunities.
Metrics and targets
Information about how an entity measures, monitors and manages sustainability: related risks and opportunitles and assesses its performance, Inciuding progress towards the targets it has set. IFRS Foundation, and Boards
A not-for-profit, public interest organization
Aims to develop high-quality standards, understandable, enforceable and globally accepted accounting and sustainability disclosure.
The Standards are developed by our two independent standard-setting boards,
1- the International Accounting Standards Board (IASB) (issues the IFRS accounting Stds used in 140 countries, and IFS for SMEs,
2- International Sustainability Standards Board (ISSB). Issues the IFS S IFRS $2 Climate-related Disclosures
Objective: to disclose information about its exposure to climate-related risks and opportunities, enabling users of an entity's general-purpose financial reporting:
Governance: The entity is required to disclose information about the governance body or bodies (which can include a board, committee or equivalent body charged with governance) with oversight of climate related risks and opportunities, and a description of management's role regarding climate-related risks and opportunities.
to identify and disclose a description of significant climate related risks and opportunities and the time horizon over which each could reasonably be expected to affect its business model, strategy, and cash flows, its access to finance, and its cost of capital, over the short, medium or long term. Recent Developments
• IFRS S1 and IFRS S2 on Climate and General Requirement disclosures released
March 31, 2022.
• Path to a global baseline (i.e., "necessary institutional and technical underpinnings") to be completed by year-end; emphasis now shifts to jurisdictional implementation.
• The IAASB, IESBA and IPSASB are all considering their response to the rise in sustainability reporting
• IAASB is working on a stand-alone assurance standard for sustainability-related reporting (5000)
• IESBA is considering the need for updates to the Code of Ethics.
• The IPSASB published a consultation paper to explore the need for sustainability reporting standards for the public sector
• IES is aligning the accountancy education standards . Examples of Disclosures
• Plans to manage or decommission operations that are carbon, energy or water-intensive
• Reallocation of resources due to demand or supply-chain changes
• Reallocation of resources due to new business development resulting in capital expenditure or additional expenditure on research and development
• Acquisitions or divestments
• Changes in production processes
• Equipment changes
• Relocation of facilities
• Workforce adjustments
• Product specification changes
targets that the entity has set and targets that the entity is required to meet by law or regulation.