Phd, DSc Xalilov Sherzod
Head of the Department of Accounting at the ISFT Institute
Tursunova Nargiza
International Islamic Academy оf Uzbekistan
Abstract. The adoption of IFRS S1 and IFRS S2 by the International Sustainability Standards Board aims to improve the consistency and usefulness of sustainability reporting by standardizing disclosures on climate-related and ESG risks. These standards support better investor decision-making and encourage the integration of sustainability considerations into corporate governance and risk management. In Uzbekistan, the gradual alignment of state-owned and private enterprises with IFRS standards creates opportunities to enhance transparency, attract international investment, and strengthen risk management practices. However, implementation remains constrained by limited technical capacity, weak ESG data systems, and insufficient assurance frameworks. This article examines these opportunities and challenges and proposes recommendations to support the effective adoption of IFRS S1 and S2 in Uzbek enterprises.
Keywords: IFRS S1, IFRS S2, sustainability reporting, climate-related disclosures, ESG.