Assessing the Factors Influencing the Implementation of Sustainability Reporting Standards IFRS S1 and S2 Among Listed Companies in Zambia
DOI:
https://doi.org/10.59413/ajocs/v7.i3.46Keywords:
Sustainability Reporting, IFRS S1, IFRS S2, Implementation Factors, ESG Disclosure, Emerging Markets, Institutional Theory, Zambia, Lusaka Securities Exchange,Abstract
The increasing global demand for transparency on environmental, social, and governance (ESG) issues has led to the introduction of IFRS S1 and IFRS S2 by the International Sustainability Standards Board to standardise sustainability-related financial disclosures. While these standards present an opportunity to enhance comparability and accountability, their implementation in emerging economies remains uncertain. In Zambia, sustainability reporting is still developing, with limited empirical evidence on the extent of adoption and the factors influencing effective implementation. This creates a gap between regulatory expectations and organisational readiness, particularly among listed companies. This study aimed to assess the level of adoption of IFRS S1 and S2 and examine the organisational, technical, and institutional factors influencing their implementation among listed companies in Zambia. A mixed methods approach using a convergent parallel design was employed, combining quantitative data from 76 respondents with qualitative insights from 12 key informant interviews. Descriptive statistics and multiple regression analysis were used for quantitative data, while thematic analysis was applied to qualitative findings. The results indicate that adoption of IFRS S1 and S2 is moderate, with mean scores of 3.16 and 3.05 respectively, and weak integration into financial reporting (mean = 2.89). Awareness levels were high (mean = 4.39), but training was moderate (mean = 3.66), indicating a gap between knowledge and implementation. Regression analysis shows that organisational capacity (β = 0.34, p < 0.001), technical readiness (β = 0.29, p = 0.001), and institutional pressure (β = 0.27, p = 0.002) significantly influence implementation, with the model explaining 61.9% of the variance (R² = 0.619). The study contributes to Institutional Theory and the Resource-Based View by demonstrating that internal capabilities and external pressures jointly shape sustainability reporting practices in emerging economies. Practically, the findings highlight the need for capacity building, investment in ESG data systems, and stronger regulatory guidance to support effective implementation of IFRS S1 and S2 in Zambia.
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Copyright (c) 2026 Tarisai Maria Chatora, Dr. Romeo Yohane (Author)
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