IFRS S1 AND S2 SUSTAINABILITY REPORTING STANDARDS: A NEW APPROACH FOR VIETNAMESE ENTERPRISES

Abstract

In the context of globalization and growing demands for non-financial disclosures, sustainability reporting has become increasingly essential. To standardize ESG reporting practices, the International Sustainability Standards Board (ISSB) issued its first two standards – IFRS S1 and IFRS S2 – in June 2023, adopting a financial materiality approach. Unlike GRI or ESRS, these standards focus on ESG factors that materially impact a company’s financial performance and long-term value creation. This paper presents the core content of IFRS S1 and S2, analyzes key differences compared to existing frameworks, and proposes strategic directions for Vietnamese enterprises in aligning with global sustainability reporting practices.