The Role of IFRS S1 and S2 Standards in Enhancing Transparency and Accountability in ESG Governance Article by Dr. Ali Mohammed Hussein Jassim The IFRS S1 and S2 standards represent a qualitative shift in both financial and non-financial reporting, as they provide a unified and integrated framework for disclosing information related to sustainability-related risks and opportunities, including environmental, social, and governance (ESG) aspects. This framework has contributed to reducing inconsistencies in disclosure practices among companies and enhancing the comparability of reports, thereby supporting decision-makers—especially investors—in evaluating organizations’ sustainable performance. The application of these standards enhances transparency by requiring companies to disclose climate-related risks and their financial impacts, in addition to linking non-financial information with actual financial performance. This, in turn, improves the quality of accounting information and increases its reliability, positively reflecting on the efficiency and stability of financial markets. These standards also support the concept of corporate accountability, as they oblige companies to provide accurate and verifiable information regarding their sustainability performance. On the other hand, adopting IFRS S1 and S2 directly contributes to the development of management accounting practices, as it helps integrate environmental and social considerations into planning, control, and decision-making processes. It also provides new analytical tools that enable management to assess environmental and social costs and improve resource efficiency in line with sustainable development goals. Despite these advantages, several challenges face the implementation of these standards, most notably differences in readiness levels among countries, a lack of sustainability-related data, and the need to develop professional competencies in sustainable accounting. Additionally, some companies still face difficulties integrating non-financial information into their traditional accounting systems. In conclusion, IFRS S1 and S2 standards represent a fundamental step toward integrating financial and non-financial reporting, enhancing transparency and accountability, and strengthening the role of management accounting in achieving institutional sustainability. The article recommends raising awareness of these standards and developing regulatory and training frameworks to ensure their effective implementation across various economic environments.