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IFRS Sustainability Disclosure Standards Readiness Assessment / Gap Analysis Checklist

ICPAK's Roadmap for Adoption of the IFRS Sustainability Disclosure Standards (IFRS S1 & S2) released in November 2024 guides Kenyan organizations in improving how they report on environmental, social, and governance (ESG) matters that affect their business. A key part of this journey is helping organizations understand where they currently stand in terms of sustainability reporting and what needs to change to meet the new global standards. Before you can start reporting under the new IFRS Sustainability Disclosure Standards, you need to know what you're already doing well—and what you're missing. This is where a "gap analysis" comes in. Think of it like a health check for your sustainability reporting.

In Kenya, PIEs include entities whose activities have a significant impact on the public and financial markets. These include:

  • Companies listed on the Nairobi Securities Exchange (NSE)
  • Commercial banks regulated by the Central Bank of Kenya (CBK)
  • Insurance companies regulated by the Insurance Regulatory Authority (IRA)
  • Retirement benefit schemes and pension funds regulated by the Retirement Benefits Authority (RBA)
  • Fund managers and collective investment schemes regulated by the Capital Markets Authority (CMA)
  • Deposit-taking SACCOs regulated by the Sacco Societies Regulatory Authority (SASRA)
  • Large state corporations and government-controlled entities with significant public accountability reporting in accordance with IFRS Accounting Standards.

The checklist helps your organization:

  • Look at how you currently report on sustainability matters (if at all)
  • Check your governance, strategies, risk management, and how you measure sustainability issues
  • Identify areas that are not yet aligned with what the new standards require

A baseline assessment also enables organisations to develop a targeted implementation roadmap, aligning reporting of Sustainability Related Risk & Opportunities (SrROs) with IFRS Sustainability Disclosure Standards requirements. This proactive approach ensures that the SrROs are accurately integrated into financial disclosures, improving transparency and accountability. The outcome is a well-prepared pathway, built on a foundation of accurate data, internal capacity, and stakeholder engagement. The outcome is a gap report and roadmap highlighting what needs development or improvement before first disclosure.

Conducting a gap assessment

Check your reporting content to see what is missing. Companies can use the Content Checklist to determine where they stand on their sustainability-related financial disclosure journey. Once the company identifies missing information, they should use Quality assessment to identify whether and how to include this information in a way that's decision-useful within the company's general purpose financial report.

Frequently Asked Questions

What is this project?

This is a web-based application designed to assist Public Interest Entities (PIEs) in assessing their sustainability reporting readiness. It provides tools for filling out forms, tracking assessments, and generating reports.

What do I do if I forget my password?

- Use the "Forgot Password" link on the login page to reset your password. Follow the instructions sent to your email.

How do I fill out a form?

  • Log in to the application.
  • You need to be linked to a company to access the forms. If you are not linked to a company, the page will prompt you to add your company before you can access the forms.
  • Navigate to the relevant menu (e.g., Pre-Assessment, Quality Assessment).
  • Select the section you need to complete through the Update tab.
  • Fill in the required fields and save your progress.
  • Submit the form when all fields are completed.

How do I know which sections I have completed?

- The application provides a progress tracker that indicates which sections have been completed and which are still pending.

What Good Response Looks Like?

Weak Response “We consider climate risks.”
Strong Response: “Climate risks are integrated into quarterly enterprise risk management reviews and overseen by the Board Risk Committee. Climate-related risks are documented in the corporate risk register and linked to operational KPIs.”

How is my score calculated?

- Your final score is calculated based on the average score of all the sections you have filled out. Each section contributes to your overall score, which is displayed in the "Your Score" section of the dashboard.

Can my colleagues see my progress?

- Yes, if they are linked to your company, they can see the checklists and scores.

Can another user fill out the form on my behalf?

- Yes, if they are linked to your company, they can fill out the form on your behalf.

Can I edit my responses after submitting the form?

- Yes, you can edit your responses even after submitting the form. Simply navigate back to the relevant section and make the necessary changes.

Can another company see my responses?

- No, your responses are private to your company and cannot be viewed by other companies.

Can I save my progress and return later?

- Yes, you can save your progress on any form and return to complete it later.

I cannot register an account using Gmail or Yahoo email addresses. Why?

- To ensure the integrity of our user base and prevent spam accounts, we do not allow registration using Gmail or Yahoo email addresses. Please use a different email address associated with your company.

Can you automatically link me to my company?

- Yes, if your email domain matches the domain of an existing company in our system, you will be automatically linked to that company upon registration and confirmation of your email address.

How do I generate a report?

- Navigate to the relevant section (e.g., Pre-Assessment, Quality Assessment).

- Click "Export to Excel" button.

Who do I contact for support?

- You can also reach out to us through technicalservices@icpak.com for assistance.