Scope
An organisation should apply this standard when preparing and presenting sustainability-related financial disclosures in line with the IFRS Sustainability Disclosure Standards.
Sustainability-related risks and opportunities that are not reasonably expected to affect the organisation’s prospects are not covered by this standard.
An organisation may apply IFRS Sustainability Disclosure Standards regardless of whether its financial statements are prepared according to IFRS Accounting Standards or other generally accepted accounting principles or practices (GAAP).
This standard uses terms suitable for profit-oriented organisations, including public-sector business organisations. If organisations with not-for-profit activities in the private or public sector apply the standard, they may need to adjust the descriptions used for certain information.
When a significant event happens or there is a significant change in circumstances, an organisation should reassess the scope of all affected sustainability-related risks and opportunities throughout its value chain. Such significant events or changes can occur even if the organisation is not directly involved, or because of a change in what the organisation considers important to users of general purpose financial reports. For example, these significant events or changes might include:
a major change in the organisation’s value chain, such as a supplier making a change that significantly alters its greenhouse gas emissions;
a major change in the organisation’s business model, activities, or corporate structure, like a merger or acquisition that expands the value chain; and
a major change in the organisation’s exposure to sustainability-related risks and opportunities, for instance, if a supplier is affected by a new regulation the organisation had not anticipated.
An organisation is allowed, but not required, to reassess the scope of any sustainability-related risk or opportunity throughout its value chain more often than what is required above.