IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information
Sets out the overall requirements for disclosing sustainability-related financial information.
The objective of IFRS S1 is to require an entity to disclose information about its sustainability related risks and opportunities that is useful to primary users of general-purpose financial reports in making decisions relating to providing resources to the entity.
[Ref: Para 1] The objective of IFRS S1 is to require an entity to disclose information about its sustainability related risks and opportunities that is useful to primary users of general-purpose financial reports in making decisions relating to providing resources to the entity.
IFRS S1 focuses on sustainability-related financial information—information about an entity’s sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s cash flows, its access to finance or cost of capital over the short, medium or long term. This Standard requires an entity to disclose such information which includes information about:
The processes, controls and procedures the entity uses to monitor and manage sustainability-related risks and opportunities.
the approach the entity uses to manage sustainability related risks and opportunities.
the processes the entity uses to identify, assess, prioritize and monitor sustainability-related risks and opportunities.
The entity’s performance in relation to sustainability-related risks and opportunities, including progress towards any targets set or required.
[Ref: BC44] IFRS S1 focuses on sustainability-related financial information—information about an entity’s sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s cash flows, its access to finance or cost of capital over the short, medium or long term.
The objective here is to enable users of general-purpose financial reports to understand the governance processes, controls and procedures an entity uses to monitor, manage and oversee sustainability-related risks and opportunities.
- How sustainability responsibilities are formally integrated into their roles (e.g., in their terms of reference or job descriptions).
- How they ensure they have, or develop, the necessary skills and competencies to oversee sustainability strategies.
- The process and frequency by which they are informed about sustainability risks and opportunities.
- How they integrate sustainability into the entity's overall strategy, major transaction decisions, and risk management, including considering any trade-offs.
- How they oversee the setting of sustainability targets and monitor progress, including whether performance metrics related to these targets influence remuneration policies.
- Delegation of Responsibility: Whether a specific management-level position or committee is assigned the role of monitoring, managing, and overseeing sustainability risks and opportunities. If so, how oversight is maintained over this designated position or committee.
- Use of Controls and Procedures: Whether management utilizes specific controls and procedures to support their oversight of sustainability-related risks and opportunities. If they do, how these sustainability-focused controls and procedures are integrated with other existing internal functions and processes within the organization.
Rajesh Hamaal Productions Pvt. Ltd. (the "Company") recognizes the critical importance of effective governance in managing sustainability-related risks and opportunities that impact its prospects.
- Oversight Responsibility: The Board of Directors holds ultimate responsibility for overseeing the Company's sustainability strategy. Day-to-day oversight and management are delegated to the Talent Sustainability Committee (TSC), a standing committee whose mandate is formally integrated into its charter and members' terms of reference. Key members of the TSC include the Managing Director, Head of Human Resources, and a designated independent Board member with deep industry expertise.
- Competencies: The Board and TSC members regularly participate in training and workshops focused on human capital management in the creative industry and evolving sustainability reporting standards (including IFRS S1). External industry experts are periodically engaged to provide specialized insights into talent trends and retention strategies within the Nepalese film sector.
- Information Flow: TSC receives detailed monthly reports from the Human Resources and Production departments on key talent metrics, including actor retention rates and industry trends. The TSC then provides a comprehensive quarterly update to the full Board of Directors, highlighting significant risks and progress on mitigation efforts. Critical developments are escalated to the Board immediately.
- Integration into Strategy and Risk Management: The risk of actor migration is explicitly considered in the Company's annual strategic planning. This influences our long-term investment decisions in talent development and competitive remuneration. This risk is formally embedded within our Enterprise Risk Management (ERM) framework, with regular reviews and assigned ownership for mitigation strategies.
- Oversight of Targets and Remuneration: The Board approves specific targets related to talent retention, such as reducing the year-on-year increase in actor departures and increasing the percentage of locally nurtured talent in key roles. Progress against these targets is monitored quarterly. A portion of the performance-based remuneration for senior management involved in talent management, including the Managing Director and Head of Human Resources, is linked to the achievement of these critical talent retention targets.
The objective here is to enable users of general-purpose financial reports to understand an entity’s strategy for managing sustainability-related risks and opportunities.
- The sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s prospects.
- The current and anticipated effects of those sustainability-related risks and opportunities on the entity’s business model and value chain.
- The effects of those sustainability-related risks and opportunities on the entity’s strategy and decision-making.
- The effects and estimated effect of those sustainability-related risks and opportunities on the entity’s financial position, financial performance and cash flows for the reporting period, over the short, medium and long term.
- The resilience of the entity’s strategy and its business model to those sustainability-related risks.
Sustainability-related risks and opportunities arise out of the interactions between an entity and its stakeholders, society, the economy and the natural environment throughout the entity’s value chain. An Entity shall disclose the same and where they are concentrated (e.g., Geography, type of Assets or otherwise).