This publication presents the sample annual sustainability report of a fictional listed company, VALUE Plc, for its first year of reporting under IFRS Sustainability Disclosure Standards. Certain transition reliefs have been applied by VALUE Plc (see note 1.3for more information). VALUE Plc is the same entity as the one on which the IFRS Accounting Standards illustrative financial statements are based. The group structure, nature of operations, financial performance et care consistent between this illustrative sustainability report and the illustrative financial statements. Where applicable, cross-references have been included to note disclosures in the illustrative financial statements. VALUE Plc is listed on a fictitious stock exchange, and it is the parent entity in a consolidated entity (the ‘group’). The group manufactures and sells furniture and electronic equipment, and it provides IT consulting services.
This publication illustrates only selected examples of the sustainability reporting requirements that would apply to such a company under IFRS Sustainability Disclosure Standards that were issued at 31 December 2024. Supporting commentary is set out in orange boxes throughout the publication including references to our Sustainability Reporting Guide (referred to as ‘SRG’). The purpose of this publication is to illustrate how an entity might structure its sustainability report, specifically as it relates to the overall sustainability reporting policies. The illustrative sustainability report includes the following sustainability reporting policy notes:
1. Basis of preparation
2. Overview of the group and value chain
3. Reporting boundary
4. Judgements and measurement uncertainties
5. Materiality assessment
6. Sustainability governance
This illustrative sustainability report includes an example disclosure for one risk of each of environmental (both climate-related transition risk and climate-related physical risk), social, and governance areas. It also includes an example disclosure of an opportunity in the social section. Other sustainability-related risks and opportunities might exist for VALUE Plc which would require disclosure, but they are not included for the purposes of this illustration. In addition, depending on the number of sustainability-related risks and opportunities that an entity identifies and discloses, a different structure might be more appropriate.
The group’s sustainability report covers material information about selected sustainability-related risks and opportunities that could reasonably be expected to affect the group’s cash flows and its access to finance or cost of capital over the short-, medium-, and long-term. This includes information from the group’s own operations and information that arises or might arise in the context of the group’s value chain.
This publication includes specific disclosures required by IFRS Sustainability Disclosure Standards as well as additional disclosures that provide material information to users. For disclosures specifically required by IFRS Sustainability Disclosure Standards, the applicable paragraph in IFRS S1 or IFRS S2 that the disclosure is illustrating has been included in the left column of each page in black boldtext. In addition, this illustrative sustainability report includes a number of areas that do not have a specific disclosure requirement in IFRS Sustainability Disclosure Standards but which we believe provide helpful illustrative examples of material information for users. References in the left column of each page which are not in bold text are not specific disclosure requirements but refer to guidance in the relevant standard related to the disclosure. In a limited number of instances, we have provided information in brackets [for example], this information should be understood to be a placeholder for details which should be customised by entities depending on specific facts and circumstances.