IFRS Sustainability Disclosure Standards: From Awareness to Implementation

The investor-focused disclosure requirements - IFRS S1 and S2 standards have been adopted by various jurisdictions, with Nigeria being a front-runner in Africa. To drive this adoption, the Financial Reporting Council (FRC) of Nigeria established the Adoption Readiness Working Group (ARWG), a 40-member committee, in June 2023. Notably, KPMG Nigeria was part of this group. In March 2024, Nigeria unveiled its IFRS adoption roadmap, outlining the necessary steps for implementing these standards in the country.

Prior to this, we had released fact sheets on IFRS S1 and S2 and engaged with decision makers in the past year to create awareness on the standards, and in taking some initial steps. The resulting question from these engagements has been - how do we move from awareness to implementation?

Also, as most organisations draw up their implementation plans over the course of the year, it is imperative that they focus on driving strategic sustainability initiatives that help them meet the requirements of the standard, while harnessing opportunities that abound. This presents opportunities for corporates in Nigeria to position themselves as leaders in Africa, potentially attracting ESG-focused investment and propelling the country towards a more sustainable future.

In this publication, we aim to highlight some specifics of Nigeria’s IFRS Sustainability Disclosure Standards Adoption Roadmap to move the conversation from awareness to implementation and value creation.

This publication outlines the progress made so far, the FRC’s adoption roadmap, transition reliefs, opportunities, and benefits associated with adoption, and a high level Sample Implementation Roadmap for Voluntary Adopters. We aim to provide a clearer understanding of how to navigate this crucial transition to adopting IFRS S1 and S2, fostering transparency in sustainability reporting.