The Role of IFRS S1 in Enhancing the Disclosure of Sustainability-Related Risks and Opportunities: An Analytical Study of the Bank of Baghdad

Abstract

This study examines the effect of IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, on the provision of information concerning sustainability-related risks and opportunities, and the role of such disclosure in strengthening stakeholder decision-making and achieving sustainable performance. The study applies an empirical analysis to the Bank of Baghdad for the period 2020-2024. To achieve this objective, the study adopts a descriptive-analytical approach based on the Bank's financial data and sustainability reports. The findings indicate that the Bank maintains strong liquidity and credit indicators, reflecting a prudent risk-management policy, while simultaneously capitalizing on sustainability opportunities, particularly those associated with digital transformation. These practices have positively affected profitability indicators and asset growth. The study concludes that compliance with IFRS S1 disclosure requirements enhances stakeholder confidence and supports strategic decision-making. It recommends extending this experience across the banking sector to promote business sustainability.