This article discusses the challenges and guidance needed for implementing IFRS S1 & S2 sustainability standards in Nigeria.The Financial Reporting Council (FRC) requires entities to identify and assess materiality of sustainability-related risks and opportunities (SRRO), especially under Phase 2 of the implementation roadmap.

While IFRS S2 focuses on climate-related risks, there's a gap in standards for other sustainability topics, leading to confusion among reporting entities.

The author emphasizes that materiality assessment under these standards should prioritize financial impacts over social/environmental impact, aligning with investor interests.

Entities previously focused on corporate social responsibility (CSR) but now face clarity issues in distinguishing between financial and impact materiality.The article highlights the need for clear guidelines to avoid double-reporting practices and ensure compliance with FRC requirements.Key concepts like integrated reporting's six capitals are also mentioned as part of the materiality framework.