What is IFRS S1?
Purpose and materiality
IFRS S1 requires an entity to disclose information about all sustainability-related risks and opportunities that could reasonably be expected to affect its cash flows, access to finance or cost of capital over the short, medium or long term1.
This is enterprise-value materiality — information is material if omitting, obscuring or misstating it could influence the decisions of primary users, namely investors, lenders and other creditors1.
It is a single-materiality lens, which contrasts with the double materiality used by the EU's ESRS under CSRD.
Core requirements of IFRS S1
IFRS S1 establishes the disclosure architecture that the rest of the ISSB framework reuses1.
- Four-pillar structure: governance, strategy, risk management, and metrics and targets
- Materiality assessment based on enterprise value to primary users
- Use of all reasonable and supportable information available without undue cost or effort
- Reference to other authoritative sources, such as SASB Standards, for topics not covered by a specific ISSB standard
- Disclosure at the same time as the related financial statements, covering the same reporting entity
The same four pillars carry through to IFRS S2 and to UK SRS S1, which keeps the framework coherent across topics1.
Connectivity and reporting boundary
IFRS S1 requires sustainability disclosures to be connected to the financial statements — the same reporting entity, consistent data and assumptions, and the same reporting period1.
This connectivity is one of the areas the UK strengthened in its adoption; UK SRS S1 sits within the wider package of six UK amendments to the IFRS S1 and S2 standards2.
IFRS S1 vs IFRS S2
IFRS S1 and IFRS S2 are designed to be applied together: S1 is the general framework, S2 is the first topic-specific standard1.
| Feature | IFRS S1 | IFRS S2 |
|---|---|---|
| Scope | All sustainability topics | Climate only |
| Role | General requirements / framework | Topic-specific standard |
| Key content | Materiality, four pillars, connectivity | Climate risks, scenario analysis, Scope 1-3 |
| Applied | Always | When climate is material (in practice, most entities) |
For the combined picture and global adoption status, see our IFRS S1 and S2 overview.
IFRS S1 in the UK
The UK has adopted IFRS S1 as UK SRS S1, published by DBT on 25 February 20262.
UK SRS S1 keeps the substance of IFRS S1 but applies UK-specific amendments, including the removal of the first-year relief and changes to how SASB references are treated2.
The UK mandatory regime is being set through FCA CP26/5, with listed-company requirements proposed from 1 January 20274.
What is IFRS S1?
IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, is the ISSB's cross-cutting standard issued on 26 June 2023. It sets the foundation for all sustainability disclosures — materiality, the four-pillar structure, and connectivity with the financial statements.
What is the difference between IFRS S1 and IFRS S2?
IFRS S1 is the general framework that applies to all sustainability topics; IFRS S2 is the first topic-specific standard, covering climate. S1 sets materiality and structure, while S2 adds climate-specific requirements such as scenario analysis and Scope 1-3 emissions.
What materiality does IFRS S1 use?
IFRS S1 uses enterprise-value (single) materiality: information is material if omitting or misstating it could influence the decisions of primary users — investors, lenders and other creditors. This differs from the double materiality used by the EU's ESRS.
Is IFRS S1 mandatory in the UK?
Not directly. The UK adopted IFRS S1 as UK SRS S1. The UK mandatory regime is being set through FCA CP26/5, with listed-company requirements proposed from 1 January 2027.
When did IFRS S1 become effective?
IFRS S1 is effective for annual reporting periods beginning on or after 1 January 2024 for adopting companies and jurisdictions. UK application runs through UK SRS S1 on UK-specific timing.
