Shaping international sustainability standards: an analysis of lobbying effects on the IFRS S2

Purpose This paper aims to examine the influence of lobbying activities on the development of international sustainability standards, with a focus on IFRS S2 climate-related disclosures. The paper considers how different stakeholders seek to exert influence over the standard-setting process. Design/methodology/approach Natural language processing techniques, including trigram and sentiment analysis, were used to analyze 718 comments from different stakeholders on IFRS S2. Findings The analysis reveals a multitude of positions among stakeholders, with companies and financial service providers expressing concerns over the administrative burden associated with the standard and lobbying for flexibility. Conversely, nongovernmental organizations, regulators and academic groups advocate for more stringent and climate-related disclosures. In its recent revision of the standard, the International Sustainability Standards Board has accorded greater significance to conceptual arguments than to economic arguments. Originality/value This paper employs a unique approach integrating sentiment and similarity analysis to examine stakeholder positions and lobbying efficacy within the context of international sustainability standards.