International IFRS S1 and S2 Standards to Be Implemented in Kazakhstan

The Ministry of Finance of the Republic of Kazakhstan has presented a National Roadmap for implementing sustainability disclosure standards (IFRS S1 and S2), providing for the gradual adaptation of businesses to unified international requirements.

The document notes that companies currently disclose information in different ways, using the recommendations of KASE, AIX, the Agency for Regulation and Development of the Financial Market (ARDFM), their own methodologies, and various international standards. As a result, ESG data remains incomparable, and assessing business sustainability, climate risks, and double materiality factors is difficult.

At the same time, it is noted that the global economy is gradually moving toward mandatory disclosure of ESG and climate information, which for businesses is becoming part of access to investment, international financing, and global supply chains. Against this backdrop, Kazakhstan views the implementation of IFRS S1 and S2 as a way to increase economic transparency and improve risk management quality.

The analysis conducted showed that the current regulatory framework only partially meets international requirements. Key weaknesses identified include a lack of quantitative indicators, limited use of climate scenarios, and weak disclosure of the financial impact of ESG factors and ESG opportunities for business. A significant share of current documents remains advisory in nature.

Large public companies in the financial, oil and gas, and energy sectors — which already apply GRI, SASB, and TCFD approaches — are considered the most prepared for the new requirements. A significant proportion of non-public companies either do not yet publish ESG reporting or use informal internal approaches.

Given the varying levels of market readiness, a phased transition has been proposed. Starting in 2026, voluntary application of the climate standard S2 is proposed; from 2027, voluntary disclosure under both S1 and S2; after which a gradual mandatory transition will begin for large public companies, national companies, and large financial institutions. A more flexible approach with transitional relief is envisaged for small and medium-sized businesses.

An interdepartmental Working Group led by the Ministry of Finance of the Republic of Kazakhstan is planned to coordinate implementation. Key tasks include:

• preparing the regulatory framework;
• training the market and regulators;
• creating an online reporting platform;
• and the official translation of the standards into Kazakh and Russian.

More detailed information on the National Roadmap for implementing IFRS S1 and S2 in the Republic of Kazakhstan is available via the original source link.