RICHARD BARKER is a member of the International Sustainability Standards Board (ISSB). He is on leave from Saïd Business School, University of Oxford, where he is Professor of Accounting and served as Deputy Dean, Associate Dean for Faculty and Academic Director of the MBA. He is also Senior Associate Research Fellow at Christ Church, Oxford. Richard has previously served on the technical staff of the International Accounting Standards Board (IASB), as well as on the board of the UK’s financial accounting standard setter. Richard is the recipient of several teaching prizes, including ‘Most Acclaimed Lecturer’ in the Social Sciences Division (awarded by Oxford University Student Union) and the Pilkington Teaching Prize (awarded by the University of Cambridge). Richard designed and directed Oxford’s Leading Sustainable Corporations online programme. He qualified as a chartered management accountant while at ICI (now AstraZeneca). He holds a BA from the University of Oxford and a PhD from the University of Cambridge. ALAN TEIXEIRA has been deeply involved in technical accounting and financial reporting for over 40 years. A New Zealander, he is an award-winning educator who has written extensively on accounting matters, including being the lead author of an introductory financial accounting textbook. He balanced an academic career at the University of Auckland while providing technical support to PwC and EY. In 2003 he joined ICANZ, leading the process for bringing IFRS Accounting Standards into New Zealand. In 2005 he joined the staff of the IASB, rising to be its Senior Technical Director. He led the development of many of the IFRS Accounting Standards used today. He also helped to develop the specifications for XBRL and the was an author of the International Integrated Reporting Framework. In 2015 he joined Deloitte as its Global Head of IFRS Research. He provides IFRS technical support to its most important audit engagements. Alan was heavily involved in the development of the first IFRS Sustainability Disclosure Standards. He holds a BCom an MCom and a PhD in Accounting and Finance from the University of Auckland and is a Fellow of CAANZ, sitting on its UK Council.

• About the Authors xiiiPART I OVERVIEW OF THE ISSB AND IFRS S1 11 Introduction 31.1 Aims of the Book and Target Reader 71.2 Structure of the Book 91.3 Prerequisite Reading 102 Global Context 112.1 Evolution of the Sustainability Reporting Landscape 122.2 Market Practice 262.3 The Global Baseline and Interoperability 272.4 Conclusion 323 General-Purpose Financial Reporting and IFRS Sustainability Disclosure Standards 393.1 The Audience—The Primary Users of General-Purpose Financial Reports 403.2 Decisions Relating to Providing Resources to the Entity 433.3 IFRS Standards 443.4 Assurance 493.5 Conclusion 544 IFRS S1 General Requirements for Disclosure of Sustainability-Related Financial Information 574.1 Objective and Scope 584.2 Sustainability-Related Risks and Opportunities 594.3 Core Content 664.4 Time Horizons 764.5 Materiality 804.6 Proportionality 844.7 Judgement and Measurement Uncertainty 864.8 Fair Presentation 904.9 A Complete Set of Sustainability-Related Financial Disclosures 914.10 Conclusion 93PART II APPLYING IFRS SUSTAINABILITY DISCLOSURE STANDARDS 975 Identifying Sustainability-Related Risks and Opportunities 995.1 How to Think About Sustainability-Related Risks and Opportunities 1005.2 Relationship with an Entity's Business Model and Value Chain 1055.3 Impacts and Dependencies 1085.4 Summary 1156 Governance 1216.1 IFRS S1 Required Disclosures 1216.2 Corporate Governance 123.3 Governance of Sustainability-Related Risks and Opportunities 1276.4 Management's Role 1346.5 Effective Disclosure 1356.6 Conclusion 1367 Strategy 1377.1 Sustainability-Related Risks and Opportunities 1387.2 Current and Anticipated Effects 1427.3 Resilience 1687.4 Summary 1738 Risk Management 1758.1 Risk Management Disclosures 1778.2 Sustainability-Related Risks and Opportunities 1828.3 Conclusion 1889 Metrics and Targets 1919.1 Metrics 1919.2 Targets 2059.3 Disclosure 2109.4 Revisions to Estimates and Correcting for Errors 2199.5 Conclusion 225PART III CLIMATE-RELATED AND OTHER DISCLOSURE REQUIREMENTS 23110 IFRS S2—Climate-Related Disclosures 23310.1 Relationship Between IFRS S1 and IFRS S2 23410.2 Scope of IFRS S2 23610.3 Governance 23710.4 Strategy 23810.5 Risk Management 24710.6 Metrics and Targets 24810.7 Conclusion 26511 Other Topics and Activities 28911.1 The Process 29011.2 Topics 29211.3 Case Study 1: Fashion Apparel—A Clothing Retailer 30011.4 Case Study 2: Workplace Safety 30811.5 Financial Effects 31411.6 Conclusion 320PART IV USING SUSTAINABILITY-RELATED FINANCIAL DISCLOSURES 32112 Analysis and Use of Sustainability Disclosures 32312.1 The Scope of Investor-Oriented Information 32512.2 Decision-Useful Information 32712.3 Communicating with Investors 33212.4 Conclusion 33913 Conclusion 34113.1 An Interdisciplinary Issue 34113.2 Estimation and Uncertainty 34213.3 Materiality 34313.4 Final Words 344Notes 345Index 349

RICHARD BARKER is a member of the International Sustainability Standards Board (ISSB). He is on leave from Saïd Business School, University of Oxford, where he is Professor of Accounting and served as Deputy Dean, Associate Dean for Faculty and Academic Director of the MBA. He is also Senior Associate Research Fellow at Christ Church, Oxford. Richard has previously served on the technical staff of the International Accounting Standards Board (IASB), as well as on the board of the UK’s financial accounting standard setter. Richard is the recipient of several teaching prizes, including ‘Most Acclaimed Lecturer’ in the Social Sciences Division (awarded by Oxford University Student Union) and the Pilkington Teaching Prize (awarded by the University of Cambridge). Richard designed and directed Oxford’s Leading Sustainable Corporations online programme. He qualified as a chartered management accountant while at ICI (now AstraZeneca). He holds a BA from the University of Oxford and a PhD from the University of Cambridge. ALAN TEIXEIRA has been deeply involved in technical accounting and financial reporting for over 40 years. A New Zealander, he is an award-winning educator who has written extensively on accounting matters, including being the lead author of an introductory financial accounting textbook. He balanced an academic career at the University of Auckland while providing technical support to PwC and EY. In 2003 he joined ICANZ, leading the process for bringing IFRS Accounting Standards into New Zealand. In 2005 he joined the staff of the IASB, rising to be its Senior Technical Director. He led the development of many of the IFRS Accounting Standards used today. He also helped to develop the specifications for XBRL and the was an author of the International Integrated Reporting Framework. In 2015 he joined Deloitte as its Global Head of IFRS Research. He provides IFRS technical support to its most important audit engagements. Alan was heavily involved in the development of the first IFRS Sustainability Disclosure Standards. He holds a BCom an MCom and a PhD in Accounting and Finance from the University of Auckland and is a Fellow of CAANZ, sitting on its UK Council.

• About the Authors xiiiPART I OVERVIEW OF THE ISSB AND IFRS S1 11 Introduction 31.1 Aims of the Book and Target Reader 71.2 Structure of the Book 91.3 Prerequisite Reading 102 Global Context 112.1 Evolution of the Sustainability Reporting Landscape 122.2 Market Practice 262.3 The Global Baseline and Interoperability 272.4 Conclusion 323 General-Purpose Financial Reporting and IFRS Sustainability Disclosure Standards 393.1 The Audience—The Primary Users of General-Purpose Financial Reports 403.2 Decisions Relating to Providing Resources to the Entity 433.3 IFRS Standards 443.4 Assurance 493.5 Conclusion 544 IFRS S1 General Requirements for Disclosure of Sustainability-Related Financial Information 574.1 Objective and Scope 584.2 Sustainability-Related Risks and Opportunities 594.3 Core Content 664.4 Time Horizons 764.5 Materiality 804.6 Proportionality 844.7 Judgement and Measurement Uncertainty 864.8 Fair Presentation 904.9 A Complete Set of Sustainability-Related Financial Disclosures 914.10 Conclusion 93PART II APPLYING IFRS SUSTAINABILITY DISCLOSURE STANDARDS 975 Identifying Sustainability-Related Risks and Opportunities 995.1 How to Think About Sustainability-Related Risks and Opportunities 1005.2 Relationship with an Entity's Business Model and Value Chain 1055.3 Impacts and Dependencies 1085.4 Summary 1156 Governance 1216.1 IFRS S1 Required Disclosures 1216.2 Corporate Governance 123.3 Governance of Sustainability-Related Risks and Opportunities 1276.4 Management's Role 1346.5 Effective Disclosure 1356.6 Conclusion 1367 Strategy 1377.1 Sustainability-Related Risks and Opportunities 1387.2 Current and Anticipated Effects 1427.3 Resilience 1687.4 Summary 1738 Risk Management 1758.1 Risk Management Disclosures 1778.2 Sustainability-Related Risks and Opportunities 1828.3 Conclusion 1889 Metrics and Targets 1919.1 Metrics 1919.2 Targets 2059.3 Disclosure 2109.4 Revisions to Estimates and Correcting for Errors 2199.5 Conclusion 225PART III CLIMATE-RELATED AND OTHER DISCLOSURE REQUIREMENTS 23110 IFRS S2—Climate-Related Disclosures 23310.1 Relationship Between IFRS S1 and IFRS S2 23410.2 Scope of IFRS S2 23610.3 Governance 23710.4 Strategy 23810.5 Risk Management 24710.6 Metrics and Targets 24810.7 Conclusion 26511 Other Topics and Activities 28911.1 The Process 29011.2 Topics 29211.3 Case Study 1: Fashion Apparel—A Clothing Retailer 30011.4 Case Study 2: Workplace Safety 30811.5 Financial Effects 31411.6 Conclusion 320PART IV USING SUSTAINABILITY-RELATED FINANCIAL DISCLOSURES 32112 Analysis and Use of Sustainability Disclosures 32312.1 The Scope of Investor-Oriented Information 32512.2 Decision-Useful Information 32712.3 Communicating with Investors 33212.4 Conclusion 33913 Conclusion 34113.1 An Interdisciplinary Issue 34113.2 Estimation and Uncertainty 34213.3 Materiality 34313.4 Final Words 344Notes 345Index 349

RICHARD BARKER is a member of the International Sustainability Standards Board (ISSB). He is on leave from Saïd Business School, University of Oxford, where he is Professor of Accounting and served as Deputy Dean, Associate Dean for Faculty and Academic Director of the MBA. He is also Senior Associate Research Fellow at Christ Church, Oxford. Richard has previously served on the technical staff of the International Accounting Standards Board (IASB), as well as on the board of the UK’s financial accounting standard setter. Richard is the recipient of several teaching prizes, including ‘Most Acclaimed Lecturer’ in the Social Sciences Division (awarded by Oxford University Student Union) and the Pilkington Teaching Prize (awarded by the University of Cambridge). Richard designed and directed Oxford’s Leading Sustainable Corporations online programme. He qualified as a chartered management accountant while at ICI (now AstraZeneca). He holds a BA from the University of Oxford and a PhD from the University of Cambridge. ALAN TEIXEIRA has been deeply involved in technical accounting and financial reporting for over 40 years. A New Zealander, he is an award-winning educator who has written extensively on accounting matters, including being the lead author of an introductory financial accounting textbook. He balanced an academic career at the University of Auckland while providing technical support to PwC and EY. In 2003 he joined ICANZ, leading the process for bringing IFRS Accounting Standards into New Zealand. In 2005 he joined the staff of the IASB, rising to be its Senior Technical Director. He led the development of many of the IFRS Accounting Standards used today. He also helped to develop the specifications for XBRL and the was an author of the International Integrated Reporting Framework. In 2015 he joined Deloitte as its Global Head of IFRS Research. He provides IFRS technical support to its most important audit engagements. Alan was heavily involved in the development of the first IFRS Sustainability Disclosure Standards. He holds a BCom an MCom and a PhD in Accounting and Finance from the University of Auckland and is a Fellow of CAANZ, sitting on its UK Council.

• About the Authors xiiiPART I OVERVIEW OF THE ISSB AND IFRS S1 11 Introduction 31.1 Aims of the Book and Target Reader 71.2 Structure of the Book 91.3 Prerequisite Reading 102 Global Context 112.1 Evolution of the Sustainability Reporting Landscape 122.2 Market Practice 262.3 The Global Baseline and Interoperability 272.4 Conclusion 323 General-Purpose Financial Reporting and IFRS Sustainability Disclosure Standards 393.1 The Audience—The Primary Users of General-Purpose Financial Reports 403.2 Decisions Relating to Providing Resources to the Entity 433.3 IFRS Standards 443.4 Assurance 493.5 Conclusion 544 IFRS S1 General Requirements for Disclosure of Sustainability-Related Financial Information 574.1 Objective and Scope 584.2 Sustainability-Related Risks and Opportunities 594.3 Core Content 664.4 Time Horizons 764.5 Materiality 804.6 Proportionality 844.7 Judgement and Measurement Uncertainty 864.8 Fair Presentation 904.9 A Complete Set of Sustainability-Related Financial Disclosures 914.10 Conclusion 93PART II APPLYING IFRS SUSTAINABILITY DISCLOSURE STANDARDS 975 Identifying Sustainability-Related Risks and Opportunities 995.1 How to Think About Sustainability-Related Risks and Opportunities 1005.2 Relationship with an Entity's Business Model and Value Chain 1055.3 Impacts and Dependencies 1085.4 Summary 1156 Governance 1216.1 IFRS S1 Required Disclosures 1216.2 Corporate Governance 123.3 Governance of Sustainability-Related Risks and Opportunities 1276.4 Management's Role 1346.5 Effective Disclosure 1356.6 Conclusion 1367 Strategy 1377.1 Sustainability-Related Risks and Opportunities 1387.2 Current and Anticipated Effects 1427.3 Resilience 1687.4 Summary 1738 Risk Management 1758.1 Risk Management Disclosures 1778.2 Sustainability-Related Risks and Opportunities 1828.3 Conclusion 1889 Metrics and Targets 1919.1 Metrics 1919.2 Targets 2059.3 Disclosure 2109.4 Revisions to Estimates and Correcting for Errors 2199.5 Conclusion 225PART III CLIMATE-RELATED AND OTHER DISCLOSURE REQUIREMENTS 23110 IFRS S2—Climate-Related Disclosures 23310.1 Relationship Between IFRS S1 and IFRS S2 23410.2 Scope of IFRS S2 23610.3 Governance 23710.4 Strategy 23810.5 Risk Management 24710.6 Metrics and Targets 24810.7 Conclusion 26511 Other Topics and Activities 28911.1 The Process 29011.2 Topics 29211.3 Case Study 1: Fashion Apparel—A Clothing Retailer 30011.4 Case Study 2: Workplace Safety 30811.5 Financial Effects 31411.6 Conclusion 320PART IV USING SUSTAINABILITY-RELATED FINANCIAL DISCLOSURES 32112 Analysis and Use of Sustainability Disclosures 32312.1 The Scope of Investor-Oriented Information 32512.2 Decision-Useful Information 32712.3 Communicating with Investors 33212.4 Conclusion 33913 Conclusion 34113.1 An Interdisciplinary Issue 34113.2 Estimation and Uncertainty 34213.3 Materiality 34313.4 Final Words 344Notes 345Index 349