The Role of IFRS S1 and S2 in Enhancing Transparency and Accountability of ESG Reports: A Systematic Review

Abstract

This study aims to analyze the role of IFRS S1 and S2 in improving transparency and accountability of Environmental, Social, and Governance (ESG) disclosures. This study uses the Systematic Literature Review (SLR) method by analyzing 35 articles published in Scopus reputable international journals. The results show that IFRS S1 and S2 have the potential to improve the quality of sustainability reporting by providing clear and standardized guidance. The implementation of these standards can assist companies in disclosing relevant information regarding ESG policies and strategies, as well as related impacts and risks that may affect long-term business sustainability. The research also highlights challenges in the implementation of IFRS S1 and S2, such as differences in interpretation across countries, companies' unpreparedness to comply with regulations and the lack of standardized data and methodologies. This research provides insights for companies, regulators, and policymakers on the importance of transparency and accountability in ESG disclosures and how IFRS S1 and S2 can contribute to achieving these goals.