The initial part of the 4 part series covered the overview of ESG and Sustainability Reporting and how it relates to Sustainable Development Goals (SDGs), continental Agenda 2063, regional and national polices. This week, the focus will be on IFRS S1 which deals with General Requirements for Disclosure of Sustainability-related Financial Information. The relationship between IFRS S1 and the Zimbabwe Stock Exchange's (ZSE) Practice Note No. 16 will also be explored.

IFRS S1 – General Requirements for Disclosure of Sustainability-related Financial Information.

Disclosures of material sustainability information, risks and opportunities is the main focus of IFRS S1. The disclosure should be industry specific and aligned to Generally Accepted Accounting Principles (GAAP). A fair and valuable presentation of a company's financial information cannot be devoid of:

  • Stakeholders with whom it works and serves such as regulators, suppliers, regulators, government, investors and partners;
  • Society in which it operates which provides the market for goods and/or services besides being its source of labour and skills;
  • Natural resources upon which it draws raw material inputs required to create goods and services.

Materiality exists if omitting or misstating certain information would influence an investor decision. Sustainability-related information should be inseparable with financial statements in terms of reporting period and entity. The report should be prepared based on data, assumptions and context within which financial statements are prepared and reported at the same time as the financial statements. A comprehensive disclosure should cover governance, strategy, risk management, performance metrics and targets.

ZSE Practice Note No. 16

Practice Note No. 16 issued on 13th November 2023 categorises sustainability information into four (4) categories namely:

  • Economic disclosures – which comprise of financial performance metrics, community projects, pension schemes, procurement spending and tax.
  • Environmental disclosures, which is closely linked to aspect of natural resources and IFRS S1 in that it requires disclosures on usage of materials, energy and water. It also require measurement of waste and greenhouse gas (GHG) emissions.
  • Social disclosures – these cover staffing levels, safety records such as accidents, training and gender equality.
  • Governance disclosures which incorporate board composition in terms of skills diversity, experience and gender.


Zimbabwe will apply IFRS S1 in January 2024 as well as Practice Note 16, which is mandatory for ZSE and VFEX listed corporates effective January 2024. To ensure alignment, corporates should conduct a gap analysis and get recommendations and/or roadmap to ensure quick wins on various disclosure requirements by the end of the 1st quarter of 2024.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.