Understanding IFRS S1 and S2: A Comprehensive Guide for Corporate Boards
In recent years, sustainability-related financial disclosures have transitioned from a corporate afterthought to an essential governance function. This shift has been solidified with the introduction of the International Financial Reporting Standards (IFRS) S1 and S2, which demand much more than a compliance-based approach. According to the guidelines, they now require companies to embed sustainability and climate-related risks and opportunities into their core business strategies, governance frameworks, and financial disclosures. For boards, particularly those in companies operating within any sector exposed to sustainability risks (which is all sectors), these standards are not optional for Nigerian entities as they have been adopted by the government. In simple terms, they represent a fundamental change in how business risks are assessed, managed, and reported. In our last...











