SUSTAINABLE GROWTH AND GLOBAL FINANCIAL REPORTING STANDARDS

Abstract

Sustainable development has become a central concern in the global agenda, addressing the need for economic growth that is both environmentally responsible and socially equitable. Financial reporting plays a crucial role in this context by providing transparent, reliable, and comparable information that enables stakeholders to assess a company’s alignment with sustainability goals. This article explores the integration of sustainable development principles with international financial reporting standards, particularly the International Financial Reporting Standards (IFRS), and how these frameworks are evolving to incorporate environmental, social, and governance (ESG) factors. The formation of the International Sustainability Standards Board (ISSB) by the IFRS Foundation is a significant step towards harmonizing financial and sustainability reporting, ensuring consistency and comparability across global markets. Despite challenges, such as the lack of universally accepted sustainability reporting standards, ongoing initiatives are paving the way for more integrated reporting practices. This article highlights the opportunities and challenges companies face in aligning their financial reporting with sustainable development objectives, and discusses how such integration can drive long-term value creation while contributing to global sustainability goals.