Integrating IFRS S1 & S2 Standards with SAP SustainaBRIM
Overview Integrate IFRS S1 and S2 standards with SAP SustainaBRIM to streamline sustainability reporting and ensure compliance. This integration supports companies in disclosing sustainability-related risks and opportunities, focusing on governance, strategy, risk management, and climate-related metrics
Key Features
- Automated Data Collection: Simplifies gathering and analyzing sustainability data.
- Standardized Reporting: Aligns with global frameworks like GRI and SASB, using IFRS Sustainability Disclosure Taxonomy.
- Enhanced Transparency: Provides stakeholders with consistent, comparable sustainability disclosures.
Benefits
- Facilitates compliance with international ESG standards.
- Enhances transparency and decision-making.
- Reduces complexity in sustainability reporting.
IFRS S1
IFRS S1 is a new standard from the International Sustainability Standards Board (ISSB) that requires companies to disclose information about their sustainability-related risks and opportunities. This standard focuses on the governance, strategy, and risk management aspects of sustainability, providing a structured framework for companies to report on their environmental, social, and governance (ESG) performance.
IFRS S2
IFRS S2 specifically addresses climate-related disclosures, requiring companies to provide detailed information on how climate-related risks and opportunities affect their financial performance and strategy. This includes metrics related to greenhouse gas emissions, energy consumption, and climate resilience, helping stakeholders understand the company's climate impact and preparedness.
IOSCO
The International Organization of Securities Commissions (IOSCO) has endorsed the IFRS S1 and S2 standards, encouraging its member regulators to incorporate these standards into their national reporting frameworks. This endorsement is aimed at promoting global convergence in sustainability reporting, ensuring that companies worldwide adhere to consistent and transparent reporting practices.
IFRS Sustainability Disclosure Taxonomy
The IFRS Sustainability Disclosure Taxonomy is a digital tool designed to standardize the reporting of sustainability-related financial disclosures. Based on XBRL, this taxonomy supports the seamless integration of sustainability data into financial statements, making it easier for stakeholders to analyze and compare information. The taxonomy aligns with the IFRS accounting standards, ensuring consistency in reporting.
Implementation Security for Capital Market-Oriented Companies
While the introduction of IFRS S1 and S2 standards represents a significant step towards standardized sustainability reporting, the coexistence with other frameworks like ESRS and GRI may increase complexity. Capital market-oriented companies may face challenges in integrating these diverse reporting requirements, potentially leading to increased costs and administrative burdens. However, the alignment of these standards with global frameworks aims to provide greater transparency and consistency in sustainability reporting, ultimately benefiting both companies and investors.
Relevance of IFRS S1 & S2 to SAP SustainaBRIM
Enhanced Reporting Capabilities Integrating IFRS S1 & S2 standards into SAP SustainaBRIM enhances reporting capabilities by providing a structured framework for disclosing sustainability-related risks and opportunities. This alignment ensures comprehensive and consistent ESG reporting, meeting global standards.
Increased Transparency and Compliance SAP SustainaBRIM, combined with the IFRS Sustainability Disclosure Taxonomy, facilitates accurate and transparent sustainability disclosures. This integration supports companies in meeting the stringent requirements set by IOSCO, ensuring that they remain compliant with international reporting standards.
Streamlined Implementation for Capital Market-Oriented Companies The integration of these standards within SAP SustainaBRIM offers capital market-oriented companies a streamlined approach to managing diverse reporting requirements. This reduces complexity and administrative burdens, providing a cohesive solution that aligns with global sustainability goals.
SustainaBRIM Reporting Solutions
- Tailored Sustainability Reporting SustainaBRIM offers industry-specific solutions, enabling companies to tailor sustainability reporting to meet sector-specific standards, such as GRI, SASB, and IFRS S1 & S2. This customization ensures that organizations can accurately reflect their unique environmental, social, and governance (ESG) challenges and achievements.
- Comprehensive Data Integration The platform integrates seamlessly with existing ERP and CRM systems, consolidating data across various business functions. This integration provides a unified view of sustainability performance, enhancing decision-making and strategy development.
- Compliance and Risk Management By incorporating global reporting standards and taxonomies, SustainaBRIM helps businesses ensure compliance with international regulations. It also supports risk management by identifying and mitigating sustainability-related risks, thereby safeguarding company reputation and stakeholder trust.
- Efficiency in Reporting SustainaBRIM automates data collection and reporting processes, reducing administrative burdens and increasing efficiency. This allows companies to focus more on strategic sustainability initiatives rather than on the logistics of data management.
- Support for Sustainable Business Models The platform supports the implementation of sustainable business models, such as circular economy practices, renewable energy usage, and carbon footprint reduction strategies. This helps companies align their operations with global sustainability goals and enhance their competitive edge.
- Enhanced Stakeholder Engagement SustainaBRIM facilitates transparent and consistent communication with stakeholders, including investors, regulators, and customers. By providing detailed sustainability reports and disclosures, companies can build trust and demonstrate their commitment to sustainable practices.
No. | Reports | Industry | Description | |
1 | Sustainability Compliance Reports | All | Yes | Ensures compliance with global and regional sustainability regulations, including emissions, waste, and resource usage reporting. |
2 | IFRS Sustainability Reports | All | Yes | Produces financial disclosures aligned with IFRS standards focused on sustainability practices and impacts. |
3 | Tax Credit and Incentive Reports | All | Yes | Manages and reports on financial incentives received for sustainable practices, such as energy efficiency and renewable energy installations. |
4 | ESG Performance Reports | All | Yes | Provides detailed analyses on Environmental, Social, and Governance factors, measuring performance and stakeholder alignment. |
5 | Green Ledger Accounting | All | Yes | Tracks financial transactions related to environmental initiatives, providing detailed internal and external reporting. |
6 | Carbon Footprint Reports | All | Yes | Calculates and reports the carbon emissions from various business activities, offering insights and mitigation strategies. |
7 | Water Usage Reports | Utilities, Manufacturing, Agriculture | Yes | Monitors and reports on water efficiency and conservation efforts, crucial for water-intensive industries. |
8 | Waste Management Reports | All | Yes | Tracks waste production and recycling initiatives, providing compliance and performance reporting. |
9 | Renewable Energy Reports | Energy, Utilities | Yes | Reports on the usage of renewable energy within the organization, including financial and operational impacts. |
10 | Sustainable Procurement Reports | All | Yes | Assesses and reports on the sustainability of the supply chain, focusing on procurement practices that meet sustainability goals. |
11 | Biodiversity Impact Reports | Construction, Agriculture, Forestry | Yes | Assesses the impact of operations on biodiversity, reporting on conservation efforts and mitigation strategies. |
12 | Energy Footprint Reports | All | Yes | Tracks total energy consumption and efficiency across operations, promoting reductions and transitions to renewable sources. |
13 | Chemical Footprint Reports | Manufacturing, Chemicals | Yes | Documents chemical use, focusing on managing risks and reducing environmental impacts. |
14 | Land Use Footprint Reports | Agriculture, Real Estate, Forestry | Yes | Analyzes impacts on land use, including deforestation and habitat disruption. |
15 | Air Quality Footprint Reports | Manufacturing, Energy | Yes | Measures and reports on air pollutants, supporting initiatives to improve air quality. |
16 | Noise Footprint Reports | Construction, Manufacturing, Transportation | Yes | Assesses operational noise impacts, focusing on community well-being and compliance with noise regulations. |
17 | Resource Utilization Footprint Reports | All | Yes | Tracks efficiency in using resources like metals and plastics, aiming to optimize use and increase recycling. |
18 | Logistics Footprint Reports | Transportation, Retail | Yes | Focuses on environmental impacts of logistics activities, aiming to enhance supply chain sustainability. |
19 | Digital Footprint Reports | Technology, Services | Yes | Monitors impacts of digital infrastructure, focusing on reducing energy use and managing e-waste. |
20 | Social Impact Reports | All | Yes | Evaluates the social implications of business practices, including employment, community engagement, and health and safety. |
21 | Supplier Sustainability Reports | All | Yes | Reviews and reports on the sustainability practices of suppliers, integrating performance into overall ESG scores. |
22 | Climate Adaptation Reports | All | Yes | Details initiatives and strategies for adapting to climate change impacts, including risk assessments and mitigation plans. |
23 | Circular Economy Reports | Manufacturing, Retail | Yes | Reports on efforts to implement circular economy practices, reducing waste and enhancing product lifecycle management. |
24 | Energy Transition Reports | Energy, Utilities | Yes | Tracks the shift from fossil fuels to renewable energy sources, documenting progress and challenges. |
25 | Green Building Reports | Construction, Real Estate | Yes | Assesses the implementation of green building practices, including energy efficiency, sustainable materials, and building management systems. |
26 | Human Rights Compliance Reports | All | Yes | Monitors and reports on compliance with international human rights standards, focusing on labor practices and community interactions. |
27 | Water Risk Reports | Utilities, Agriculture, Manufacturing | Yes | Analyzes risks associated with water scarcity and quality, providing strategies for sustainable water management. |
28 | Eco-Innovation Reports | Technology, Manufacturing | Yes | Highlights innovations that reduce environmental impacts, improve efficiency, or enhance sustainability. |
29 | Sustainable Finance Reports | Financial Services | Yes | Details financial products and services designed to support sustainable development, including green bonds and sustainable loans. |
30 | Product Lifecycle Reports | Manufacturing, Retail | Yes | Reports on the environmental impact throughout the product lifecycle, from design to disposal, aiming for sustainability improvements. |
31 | Greenhouse Gas Reduction Reports | All | Yes | Provides detailed tracking and reporting on initiatives to reduce greenhouse gas emissions across operations. |
32 | Eco-labeling Compliance Reports | Consumer Goods, Retail | Yes | Ensures products meet eco-labeling standards and reports on compliance rates, enhancing product transparency and consumer trust. |
33 | Sustainable Event Reporting | Hospitality, Services | Yes | Details the sustainability practices employed during corporate or public events, focusing on waste reduction, energy efficiency, and sustainable sourcing. |
34 | Ocean and Marine Sustainability Reports | Maritime, Fisheries | Yes | Focuses on the impact of business activities on marine environments, reporting on pollution control, sustainable fishing practices, and habitat protection. |
35 | Sustainable Packaging Reports | Retail, Consumer Goods | Yes | Reports on efforts to reduce packaging waste and enhance recyclability, aligning with global reduction targets and consumer expectations. |
36 | Energy Efficiency Progress Reports | Manufacturing, Energy | Yes | Tracks improvements in energy efficiency across facilities, highlighting successful initiatives and areas for future improvements. |
37 | Corporate Sustainability Strategy Reports | All | Yes | Provides an overview of the company’s sustainability strategy and progress towards goals, integrating financial and operational perspectives. |
38 | Biodiversity Financing Reports | Construction, Energy, Agriculture | Yes | Monitors financial investments in biodiversity conservation projects, linking financial performance with ecological impact. |
39 | Sustainable Agriculture Reports | Agriculture, Food & Beverage | Yes | Documents practices and outcomes in sustainable agriculture, including organic farming, soil health, and water management. |
40 | Renewable Resource Reports | All | Yes | Details the use of renewable resources in production and operations, including impacts on sustainability goals and cost implications. |
41 | Ethical Sourcing Reports | Manufacturing, Retail | Yes | Evaluates sourcing practices to ensure ethical standards are met, particularly in global supply chains. |
42 | Corporate Philanthropy Reports | All | Yes | Reports on charitable activities and their alignment with sustainability goals, showcasing corporate social responsibility. |
43 | Local Community Engagement Reports | All | Yes | Details initiatives and investments in local communities, focusing on creating sustainable impacts and fostering partnerships. |
44 | Sustainable Mining Reports | Mining | Yes | Assesses and reports on sustainable practices in mining operations, focusing on reducing environmental impact and enhancing community relations. |
45 | Water Conservation Achievement Reports | Utilities, Agriculture | Yes | Highlights successful water conservation initiatives, documenting reductions in water use and improvements in water management practices. |
46 | Green IT Reports | Technology | Yes | Focuses on reducing the environmental footprint of IT operations, including data center efficiency and electronic waste management. |
47 | Environmental Risk Management Reports | All | Yes | Identifies and reports on potential environmental risks and the effectiveness of mitigation strategies employed by the company. |
48 | Sustainable Manufacturing Reports | Manufacturing | Yes | Reports on the integration of sustainability into manufacturing processes, including energy use, waste reduction, and sustainable material use. |
49 | Employee Sustainability Engagement Reports | All | Yes | Tracks employee engagement and participation in sustainability initiatives, reflecting corporate culture and effectiveness of internal communications. |
50 | Green Financing Reports | Financial Services | Yes | Details the performance and impact of green financing initiatives, such as green bonds and sustainability-linked loans. |
51 | Pollution Control Reports | Manufacturing, Energy | Yes | Monitors and reports on efforts to control and reduce pollution output, focusing on air, water, and soil quality. |
52 | Sustainable Energy Deployment Reports | Energy | Yes | Details the deployment of sustainable energy solutions, including solar, wind, and bioenergy, assessing impacts on overall energy strategy. |
53 | Sustainable Retail Operations Reports | Retail | Yes | Assesses the sustainability of retail operations, from in-store energy management to sustainable merchandising practices. |
54 | Carbon Sequestration Reports | Forestry, Agriculture | Yes | Reports on carbon capture and storage practices, especially in sectors like forestry and agriculture where sequestration is a significant component of operations. |
55 | Environmental Stewardship Awards Reports | All | Yes | Documents awards and recognitions received for environmental stewardship, enhancing brand reputation and stakeholder confidence. |
56 | Green Marketing Reports | Consumer Goods, Services | Yes | Evaluates the effectiveness of green marketing campaigns and their impact on consumer behavior and sales. |
57 | Sustainable Transport Reports | Transportation | Yes | Tracks the implementation and effects of sustainable transport practices, such as fleet electrification and alternative fuels. |
58 | Energy Storage Solutions Reports | Energy, Utilities | Yes | Details advancements and performance in energy storage solutions, critical for managing renewable energy sources. |
59 | Green Procurement Reports | Government, Corporate | Yes | Monitors and evaluates procurement policies that prioritize environmentally friendly products and services. |
60 | Sustainable Urban Development Reports | Real Estate, Construction | Yes | Reports on the development of sustainable urban projects, focusing on aspects like green spaces, sustainable building materials, and community impact. |
61 | Eco-Resilience Reports | All | Yes | Analyzes and reports on the organization’s resilience to ecological changes and challenges, including strategies for adaptation and resilience. |
62 | Sustainable Water Management Reports | Utilities, Manufacturing, Agriculture | Yes | Details practices and outcomes related to sustainable water management, such as recycling and efficient usage initiatives. |
63 | Eco-Tourism Impact Reports | Hospitality, Travel | Yes | Assesses impacts of eco-tourism initiatives, documenting benefits to local environments and communities. |
64 | Green Real Estate Development Reports | Real Estate | Yes | Reports on sustainable practices in real estate development, focusing on energy efficiency, material sustainability, and community impact. |
65 | Renewable Heating Solutions Reports | Utilities, Residential | Yes | Details the implementation and efficiency of renewable heating solutions, such as geothermal and solar thermal systems. |
66 | Urban Greening Reports | Municipal Government, Real Estate | Yes | Documents initiatives and progress in urban greening projects, such as park developments, green roofs, and vertical gardens. |
67 | Low-Carbon Transition Reports | Energy, Industrial | Yes | Tracks the transition of operations from high to low carbon methods, detailing investments, outcomes, and future plans. |
68 | Green Supply Chain Certification Reports | Manufacturing, Retail | Yes | Monitors and verifies green certifications within the supply chain, ensuring suppliers adhere to set environmental standards. |
69 | Sustainable Fisheries Reports | Fisheries, Food & Beverage | Yes | Provides insights into sustainable fishing practices, stock management, and ecosystem impacts. |
70 | Environmental Innovation Grants Reports | All | Yes | Tracks grants received for environmental innovation projects, detailing project outcomes and impacts. |
71 | Clean Air Initiatives Reports | Manufacturing, Transportation | Yes | Reports on initiatives aimed at improving air quality, including emission reductions and investments in clean air technologies. |
72 | Zero-Waste to Landfill Reports | Manufacturing, Retail | Yes | Details efforts and strategies to achieve zero waste to landfill, reporting on waste diversion rates and recycling initiatives. |
73 | Green Event Management Reports | Corporate, Public Events | Yes | Assesses the sustainability of event management practices, including materials use, waste management, and energy conservation. |
74 | Sustainable IT Deployment Reports | Technology, Services | Yes | Details the deployment of sustainable IT practices, focusing on energy-efficient hardware and cloud-based solutions. |
75 | Climate Finance Tracking Reports | Financial Services | Yes | Monitors and reports on financial investments directed towards climate change mitigation and adaptation projects. |
76 | Corporate Carbon Neutral Goals Reports | All | Yes | Documents progress towards corporate goals of achieving carbon neutrality, detailing strategies, offsets, and direct reductions. |
77 | Green Manufacturing Processes Reports | Manufacturing | Yes | Focuses on the implementation of environmentally friendly manufacturing processes, including reductions in energy and material use. |
78 | Sustainable Aviation Reports | Aviation | Yes | Reports on sustainable practices in the aviation industry, including fuel use, carbon offsets, and innovations in aircraft design. |
79 | Eco-Labeling Achievements Reports | Consumer Goods, Retail | Yes | Details achievements in obtaining and maintaining eco-labels for products, showcasing commitment to environmental standards. |
80 | Biodiversity Restoration Reports | Construction, Energy, Agriculture | Yes | Focuses on efforts to restore biodiversity in operational areas, including reforestation and habitat restoration projects. |
81 | Green Bond Impact Reports | Financial Services | Yes | Reports on the impacts of issued green bonds, including environmental benefits and financial performance. |
82 | Sustainable Mining Certification Reports | Mining | Yes | Details certifications obtained for sustainable mining practices, ensuring compliance with global standards. |
83 | Sustainable Procurement Impact Reports | Government, Corporate | Yes | Evaluates the impact of sustainable procurement policies, detailing cost savings and environmental benefits. |
84 | Energy Conservation Reports | All | Yes | Tracks energy conservation efforts across operations, detailing reductions and cost savings. |
85 | Green Retail Practices Reports | Retail | Yes | Assesses sustainable practices within retail operations, from product sourcing to customer engagement strategies. |
86 | Eco-Friendly Product Development Reports | Manufacturing, Consumer Goods | Yes | Details the development of eco-friendly products, including design, material selection, and market response. |
87 | Corporate Green Initiatives Reports | All | Yes | Documents all corporate initiatives aimed at enhancing environmental sustainability, from internal practices to external collaborations. |
88 | Sustainable Land Management Reports | Agriculture, Real Estate | Yes | Provides insights into sustainable land management practices, including soil health and land use planning. |
89 | Environmental Permit Compliance Reports | Construction, Industrial | Yes | Ensures compliance with all environmental permits, detailing adherence to conditions and any remedial actions taken. |
90 | Green Marketing Effectiveness Reports | Consumer Goods, Services | Yes | Evaluates the effectiveness of green marketing campaigns, analyzing consumer response and sales impact. |
91 | Eco-Friendly Packaging Innovations Reports | Retail, Consumer Goods | Yes | Highlights innovations in eco-friendly packaging, detailing materials used, consumer reception, and environmental impacts. |
92 | Corporate Sustainability Policy Reports | All | Yes | Provides a comprehensive overview of corporate sustainability policies, detailing governance, targets, and achievements. |
93 | Renewable Energy Efficiency Reports | Utilities, Industrial | Yes | Tracks the efficiency of renewable energy installations and operations, providing insights into performance improvements. |
94 | Water Recycling and Reuse Reports | Utilities, Manufacturing | Yes | Details water recycling and reuse practices, emphasizing conservation and sustainability in water-intensive industries. |
95 | Environmental Impact Assessment Reports | Construction, Energy | Yes | Provides detailed assessments of environmental impacts for proposed projects, ensuring informed decision-making and compliance. |
96 | Green IT Initiatives Reports | Technology | Yes | Documents IT initiatives aimed at reducing environmental impact, including virtualization, energy-efficient data centers, and electronic waste management. |
97 | Sustainable Event Outcomes Reports | Hospitality, Services | Yes | Provides outcomes of sustainable event practices, documenting waste management, energy use, and attendee engagement. |
98 | Green Procurement Strategies Reports | Government, Corporate | Yes | Details strategies and outcomes of green procurement practices, evaluating supplier compliance and environmental impacts. |
99 | Sustainable Building Techniques Reports | Construction, Real Estate | Yes | Focuses on sustainable building techniques used in projects, including energy efficiency, material sustainability, and design innovations. |
100 | Eco-Innovation Patents Reports | Technology, Manufacturing | Yes | Tracks patents filed for eco-innovations, highlighting the company’s role in advancing environmental technologies. |