What Are IFRS Sustainability Disclosure Standards?

Learn how IFRS S1 and S2 connect sustainability disclosure with financial reporting, enterprise value, and investor decision-making. For the first time, sustainability disclosure is being aligned more closely with financial reporting. IFRS S1 and IFRS S2 set a global baseline for reporting sustainability-related risks and opportunities, helping organizations connect sustainability performance to financial prospects in language investors and finance teams already understand. In this video, we explain what the IFRS Sustainability Disclosure Standards are, how IFRS S1 and S2 work, and why they matter for finance, risk, and sustainability leaders. IFRS S1 covers sustainability-related risks and opportunities that could affect an organization’s financial prospects, while IFRS S2 focuses on climate-related disclosures. The standards are also designed to work alongside other reporting frameworks, including the European Sustainability Reporting Standards and the Global Reporting Initiative, helping organizations reuse data across multiple disclosure requirements. As regulators in more jurisdictions adopt or mandate IFRS S1 and S2, businesses need audit-ready sustainability and financial data they can trust. Investors and analysts are using these disclosures to compare companies, assess financial risk, and inform capital allocation decisions. SAP Sustainability solutions help harmonize financial and sustainability data in one audit-ready foundation with AI-enabled automation, so organizations can meet IFRS requirements and scale across evolving frameworks. IFRS S1 and S2 set a new bar for how sustainability performance is disclosed, scrutinized, and compared. Organizations that meet it will be better positioned to attract capital, build trust, and compete globally. Explore IFRS Sustainability Disclosure Standards: https://sap.to/6051BHzRDP Chapters 00:06 - Sustainability disclosure meets financial reporting 00:25 - What IFRS S1 and S2 cover 00:48 - Connecting sustainability to enterprise value 01:11 - Who is in scope for IFRS disclosure 01:53 - Why IFRS matters for investors and capital markets 02:22 - Preparing for auditable IFRS reporting 02:47 - How SAP Sustainability solutions can help 03:03 - Building trust through better disclosure Follow us on social: LinkedIn: https://sap.to/6056BHzRDp Instagram: https://sap.to/6058BHzRDn Facebook: https://sap.to/6059BHzRDX Threads: https://sap.to/6050BHzRDk About SAP: As a global leader in enterprise applications and business AI, SAP stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit: https://sap.to/6051BHzRDZ #SAP #Sustainability #ESG