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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.

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 Checklist 1 to determine where they stand on their sustainability-related financial disclosure journey. Once the company identifies missing information, they should use Checklist 2 to identify whether and how to include this information in a way that's decision-useful within the company's general purpose financial report.