Date of publication: 17/01/2026
Category: International Trends & Strategy
Prepared by: ESG Expert Team – Carbon Credit Viet Nam Joint Stock Company
The era of fragmentation in sustainability reporting (the “Alphabet Soup” of standards such as TCFD, SASB, CDSB…) has officially come to an end. The International Sustainability Standards Board (ISSB) has established its dominant position, with 36 countries and territories – representing more than 50% of global GDP – committing to adopt the IFRS S1 and S2 standards.
For listed companies and large corporations in Vietnam, this is a warning signal: financial statements alone are no longer enough to convince international investors. “Integrated reporting” under ISSB standards is becoming the new passport for accessing green capital flows.
1. CONTEXT: THE FORMATION OF A NEW “GOLD STANDARD”
If IFRS accounting standards are the common language of global finance, then IFRS S1 (General Requirements) and IFRS S2 (Climate) are rapidly becoming the common language of sustainable development.
As of September 2025, the IFRS Foundation confirmed that 36 jurisdictions are on a path to enshrine these standards in law. The core difference between the ISSB and earlier frameworks (such as GRI, which focuses on impacts on communities) is its absolute focus on Investors and Enterprise Value. This explains why the world’s major capital markets have embraced the ISSB so warmly.
2. THE ASIAN WAVE: NO LONGER JUST A WESTERN MATTER
A common misconception is that ESG only matters in Europe or North America. In reality, Asia is the region adopting the ISSB most decisively to upgrade its markets and attract foreign capital:
- Hong Kong: Mandatory adoption since 08/2025 for listed companies, viewing this as a key factor in maintaining its position as a financial hub.
- Singapore & Japan: Have integrated the ISSB into their national reporting roadmaps, requiring public companies to disclose quantified climate risks.
- ASEAN: Malaysia and the Philippines have also issued specific adoption roadmaps.
Why does this matter for Vietnam? As neighboring countries raise their transparency standards, Vietnam’s stock market, if it lags behind, will become less attractive in the eyes of foreign institutional investors (FIIs), especially as Vietnam is striving to upgrade its market from Frontier to Emerging status.
3. KEY TECHNICAL UPDATE: SCOPE 3 RELIEF FOR THE FINANCIAL SECTOR
In December 2025, the ISSB issued important amendments to IFRS S2 designed to “ease the burden” on the financial industry, taking effect from 01/01/2027:
- Content: Relaxed requirements for reporting Scope 3 emissions related to derivatives investment activities and facilitated emissions.
- Significance: This move shows that the ISSB is highly pragmatic and listens to the market. Rather than imposing immediately unfeasible data requirements, it creates a pathway for banks and investment funds to adapt gradually. This encourages financial institutions to adopt the standards earlier without fear of data-error risks.
4. IMPACT ON VIETNAMESE BUSINESSES
Although Vietnam has not yet officially made ISSB adoption mandatory, market pressure is very real:
4.1. For Listed Companies
The Ministry of Finance is rolling out a roadmap for adopting IFRS (accounting) from 2025. Integrating IFRS S1 & S2 is the logical next step.
- Challenge: Currently, most annual reports of Vietnamese businesses stop at qualitative descriptions (stories about charity work and tree planting). The ISSB requires quantitative data on financial risks arising from climate change (for example: By what percentage would a 2°C temperature rise reduce the company’s profits?).
- Risk: International ETFs and pension funds (such as Norges Bank and BlackRock) are using filters based on ISSB standards. Businesses without this data will automatically be excluded from potential investment portfolios.
4.2. For Businesses in the Supply Chain (SMEs/Suppliers)
International customers (especially from Japan and South Korea – countries adopting the ISSB vigorously) will require Vietnamese suppliers to provide emissions data so they can complete their own Scope 3 reporting.
5. RECOMMENDATIONS FROM CARBON CREDIT VIET NAM
Vietnamese businesses need to change their mindset: from “reporting to get by” to “reporting to raise capital”.
- Proactively conduct a Gap Analysis: Compare the company’s current reporting against the IFRS S1 & S2 framework. Focus on the 4 pillars: Governance – Strategy – Risk Management – Metrics & Targets.
- Prepare in parallel: While complying with Vietnam’s Circular 96/2020/TT-BTC, businesses should begin collecting data in ISSB format. This will save on conversion costs later.
- Invest in data infrastructure: Climate data must be managed as rigorously as financial data. Internal control processes are needed to ensure disclosed figures are accurate and auditable.
6. CONCLUSION
The ISSB is not a passing trend, but a re-ordering of the global capital markets. The 36 pioneering countries have set a new common baseline.
For Vietnamese businesses, early adoption of these standards not only helps avoid future regulatory shocks (as in the CBAM scenario), but also sends a strong signal to international investors about the leadership team’s risk management capability and long-term vision.
About us: This report was prepared by the ESG Strategy & Policy Team of Carbon Credit Viet Nam Joint Stock Company. We provide consulting services for transitioning sustainability reporting to international standards (ISSB, GRI) and green finance solutions for businesses.