Sustainability Reporting: Examining the Proposed Changes Included in Stakeholder Commentary Letters Submitted to the ISSB Regarding IFRS S1

Abstract

This research report examines whether various stakeholders participating in the standard- setting process of IFRS S1, exert influence on the ISSB’s decision of which proposed changes to accept and discuss. The research employs quantitative content analysis to examine a sample of 120 IFRS S1 comment letters, categorizing stakeholder amendments by type (outcome-related vs theory-related) and degree (minor, moderate, or major) to assess their impact on the final publication (see, for example, Bamber & McMeeking, 2016; De Freitas et al., 2023). The comment letters were spread across each of the eight stakeholder groups identified by the ISSB. The findings suggest that the ISSB responded to minor and moderate proposals at significantly different rates than it did for major proposals. Evidence indicates that there is a proclivity towards specific stakeholder groups for themes encompassed within sustainability reporting, however, this only applies at a thematic level and not at the overall- level analysis. This could be because the processes that the ISSB follows are based on IFRS standard-setting protocols which also preserve credibility, where major changes are addressed on a more stringent yet consistent basis than the other degrees. While the research focuses entirely on IFRS S1, it contributes to research focused on stakeholder management and standard setting, particularly in sustainability reporting.