IMPACT OF IFRS S1 AND IFRS S2 IN SUSTAINABILITY REPORTING OF BANGLADESH

Abstract

The International Financial Reporting Standards (IFRS) foundation’s climate related disclosure standards IFRS 1 (General requirement for disclosure of sustainability related financial information and IFRS 2 (Climate related disclosure) represents a paradigm shift in global sustainability reporting. Considering the relatively short period since its introduction, there may be constraints in evaluating the complete implications of these standards. Meanwhile, the distinctive environmental vulnerabilities and socio-economic challenges of Bangladesh, evaluating readiness for these standards is essential to foster sustainable business practices. The objective of this study is to investigate how relevant IFRS S1 and IFRS S2 have an impact on the sustainability reporting of Bangladesh, assess current efforts directed at their implementation, and recognize the challenges that could impede effective adoption. With the mounting pressure from investors, regulators, and consumers for businesses to show their dedication to sustainability, standardized sustainability reporting frameworks have taken on greater importance. This study is exploratory in nature and using qualitative method, review of prior literature, IFRS standards, regulatory publications (Bangladesh Bank, Financial Reporting Council, ICAB, ICMAB) are taken into consideration. Finding reveals that there is growing recognition of sustainability's importance and some proactive measures have been initiated, but widespread readiness remains limited. It offers insights into Bangladesh's current readiness and proposes recommendations for stakeholders to navigate a successful transition towards effective sustainability reporting practices in banks and financial institutions.