In the evolving landscape of corporate sustainability, the value
chain plays a critical role in determining a company's overall
impact and success. The International Financial Reporting Standards
(IFRS) S1 and S2 emphasize the importance of understanding and
managing the value chain to enhance transparency, accountability,
and sustainability performance.
Value chain defined under IFRS S1 and S2
IFRS S1 - General requirements for
sustainability-related disclosures
IFRS S1 requires companies to provide comprehensive disclosures
on a wide range of environmental, social, and governance (ESG)
factors. Under IFRS S1, value is defined broadly to encompass not
only financial performance but also the sustainability-related
impacts of a company's operations across the entire value
chain. The standard emphasizes the need to disclose information on
how these activities create or erode value for both the company and
its stakeholders.
