Sustainability Disclosure Governance

The governance of sustainability disclosure encompasses the board and management structures, processes, controls, and assurance mechanisms that ensure the quality, reliability, and completeness of ESG information reported to stakeholders.

As sustainability reporting moves from voluntary to mandatory, the governance of this information must approach the rigour applied to financial reporting. Key elements include board oversight of sustainability reporting (ESRS 2 GOV-1), management accountability for ESG data quality, internal controls over sustainability information, materiality assessment processes (ESRS 2 IRO-1), assurance of sustainability disclosures, and integration with financial reporting processes. The convergence of sustainability and financial reporting under the IFRS Foundation umbrella signals the expectation of equivalent governance rigour.

Further Reading

• G20/OECD Principles of Corporate Governance
• ESRS

Key Resources

• ISSB Standards (IFRS S1 & S2)
• ESRS Standards

Related Topics

• Board Responsibilities
• Disclosure & Transparency
• Sustainability & Resilience