ABSTRACT:- Sustainability reporting has emerged as a critical tool for organizations seeking to align business operations with environmental, social, and governance (ESG) principles. This study examines the evolution of sustainability reporting and its integration with the International Financial Reporting Standards (IFRS), highlighting its significance in enhancing corporate transparency, risk management, and informed decision-making. Establishing the International Sustainability Standards Board (ISSB) has played a pivotal role in bridging financial and non-financial disclosures, providing a structured approach to sustainability reporting. Despite the potential benefits, challenges such as the complexity of sustainability metrics, regulatory inconsistencies, and concerns over data verification persist. However, IFRS-driven sustainability reporting enhances global comparability, fosters investor trust, and strengthens stakeholder confidence. The study also explores the role of emerging technologies, including blockchain and the Internet of Things (IoT), in improving the accuracy and reliability of sustainability disclosures. Looking ahead, the future of sustainability reporting is expected to witness greater standardization, increased focus on biodiversity and social impact disclosures, and the establishment of more robust regulatory frameworks. As sustainability becomes integral to corporate strategy, businesses must embrace integrated reporting practices to align with evolving stakeholder expectations and regulatory requirements. The study concludes that achieving harmonised global sustainability standards is essential for fostering responsible corporate practices and advancing a sustainable global economy.

Keywords:- Sustainability Reporting, IFRS Integration, Environmental, Social, and Governance (ESG), Corporate Transparency, Long-term Value Creation