A SYSTEMATIC REVIEW OF IFRS SUSTAINABILITY STANDARDS

Abstract

The establishment of the International Sustainability Standards Board (ISSB) by the IFRS Foundation represents a significant milestone in the global standardization of sustainability-related financial disclosures. Through the adoption of IFRS Sustainability Disclosure Standards S1 and S2, the ISSB has initiated efforts to support consistent and comparable sustainability reporting across jurisdictions. This study presents a systematic review of scholarly literature, focusing on stakeholder responses, debates surrounding materiality, implementation challenges, and emerging trends related to IFRS S1 and S2. The findings reveal that while the ISSB’s investor-
oriented approach enhances comparability and decision-usefulness for capital market participants, its narrow focus on financial materiality may limit the standards’ effectiveness in addressing broader environmental and social objectives.