With stakeholders demanding business transparency, regulatory compliance, and investor decision-making, sustainability-related financial disclosure (SFRD) has become increasingly vital. This has led to the creation of IFRS S1 General Requirements for disclosure of sustainability-related financial information. This is a common framework that is based on four fundamental elements: governance, risk and opportunity, strategy, and targets and metrics. This review focuses on existing literature on sustainability reporting, evaluating the theoretical foundation of the papers, drivers and determinants, its evolution, challenges, and compliance with IFRS S1. The PRISMA 2020 framework was used to select peer-reviewed articles and book chapters from 2000 to 2024. The systematic search was done in the Scopus, Google Scholar, and Web of Science databases. The analysis and synthesis resulted in 55 papers being selected for this study. The authors noted that despite advancements that have been made so far, SFRD continues to face challenges like legislative fragmentation, potential greenwashing, and inconsistent disclosure. The implementation of the IFRS S1 framework will strengthen accountability and transparency and restore or enhance investor confidence as it requires organisations to report their governance, strategy, risk and opportunity, and targets and metrics. Sustainability reporting is hinged on mainly Stakeholder, Institution, Legitimacy, and Resource dependence theories. It is driven and determined by the company size, leverage, governance structures, and performance, among others. The systematic review will strengthen sustainability-related financial disclosures and identify the research inadequacies in terms of IFRS S1 adoption, regulatory, and financial effects. It will also provide information relevant for businesses, investors, and policymakers to improve transparency, reliability, comparability, and quality of sustainability reports.