Objective
AASB S1 sets out general requirements for disclosing sustainability-related risks and opportunities that could reasonably be expected to affect an entity’s cash flows, access to finance or cost of capital over the short, medium and long term. The objective is to provide decision-useful information to primary users of general purpose financial reports.

Scope
The Standard applies to sustainability-related financial disclosures prepared under Australian Sustainability Reporting Standards. Application is voluntary. AASB S2 Climate-related Disclosures remains the only mandatory sustainability standard. Entities applying AASB S2 may elect to apply AASB S1 to disclose broader sustainability topics.

Conceptual Foundations
Sustainability-related financial information must be relevant and faithfully represent what it purports to represent. Usefulness is enhanced through comparability, verifiability, timeliness and understandability. Materiality is entity-specific and assessed in the context of the sustainability disclosures as a whole.

Fair presentation
Entities must present a complete, neutral and accurate depiction of sustainability-related risks and opportunities that could reasonably affect prospects. Additional disclosures are required where necessary to explain financial effects.

Materiality
Only material information must be disclosed. Materiality considers qualitative and quantitative factors, including the nature, magnitude, likelihood and timing of impacts on financial position, performance and cash flows.

Reporting entity
Sustainability-related financial disclosures must relate to the same reporting entity as the financial statements, including consolidated groups.

Connected information
Disclosures must enable users to understand connections between sustainability risks and opportunities, governance, strategy, risk management, metrics and targets, and the financial statements. Data, assumptions and currency should be consistent where possible.

Core Content

Governance
Entities disclose governance processes and oversight arrangements for sustainability-related risks and opportunities, including board responsibilities, skills, information flows, consideration of trade-offs, target setting, and management’s role.

Strategy
Disclosures describe sustainability-related risks and opportunities, relevant time horizons, and effects on the business model and value chain. Entities explain impacts on strategy, decision-making and financial planning, including current and anticipated effects on financial position, performance and cash flows. Qualitative disclosures are required where quantitative information is not practicable.

Risk management
Entities disclose processes used to identify, assess, prioritise and monitor sustainability-related risks and opportunities, including use of scenario analysis and integration with overall risk management.

Metrics and targets
Entities disclose metrics used to measure sustainability-related risks and opportunities and performance against targets set or required by law. Where no specific standard applies, judgement is used, drawing on recognised sources such as SASB Standards.

General Requirements

Sources of guidance
Australian Sustainability Reporting Standards must be applied. Entities consider SASB Standards and may refer to other frameworks where consistent and decision-useful.

Location of disclosures
Disclosures form part of general purpose financial reports and may be included in management commentary or similar reports, provided they are clearly identifiable.

Timing of reporting
Sustainability-related financial disclosures are reported for the same period and at the same time as the financial statements.

Comparative information
Comparative information for the preceding period is required, except where transition relief applies on first adoption.

Statement of compliance
An explicit statement of compliance is permitted only when all requirements of AASB S1 are met.

Judgements, uncertainties and errors

Judgements
Entities disclose significant judgements made in preparing sustainability-related financial disclosures.

Measurement uncertainty
Entities disclose key sources of measurement uncertainty affecting reported amounts, including assumptions and sensitivities.

Errors
Material prior-period errors must be corrected, with comparative information restated where practicable.

Basis for conclusions
AASB S1 was issued as a voluntary standard to align with IFRS S1 while supporting Australia’s policy of mandating climate-related disclosures first, with scope for broader sustainability reporting in the future.