The applicability of IFRS S1 and S2 in sustainability reporting in the energy sector: The case of Türkiye

This study examines the voluntary adoption and usability of the International Financial Reporting Standards (IFRS) S1 and IFRS S2 by energy companies in Türkiye, before their mandatory implementation in January 2024. A qualitative content analysis was conducted on the sustainability, integrated, and annual reports of 10 energy firms listed on Borsa Istanbul (BIST) for the period 2021–2023. Key disclosure themes, such as transparency, accountability, carbon emissions, climate-related risks, and net-zero strategies, were systematically analyzed using a 0–3 scoring system to assess the degree of compliance with IFRS principles. The findings demonstrate a marked improvement in both the frequency and quality of sustainability disclosures over three years. In 2021, most companies exhibited only symbolic or limited reporting, while by 2023, significant or full compliance was observed, particularly among larger firms. However, persistent shortcomings remain in areas such as independent assurance and strategic alignment with long-term net-zero targets. By placing focus on both developments and enduring shortcomings, the research presents current information regarding Turkish firms’ preparedness for global sustainability practices and identifies the need for targeted capacity-building and assurance instruments towards complete compliance.