One central principle enshrined in the IFRS sustainability standards, notably IFRS S1 - General requirements for disclosure of sustainability-related financial information, is the connectedness of the information provided in sustainability-related financial disclosures and other general-purpose financial reports such as financial statements.
Therefore, there is an expectation that the sustainability-related strategic decisions discussed in the sustainability report will translate into financial impact in the financial statements. This connected information helps to prevent the risk of greenwashing by organisations where sustainability matters affecting them are not considered or included in preparing the financial statements.
