COSO Internal Control Framework in Sustainability Reporting: Challenges and Prospects for Application in Vietnamese Commercial Banks

Abstract

This article analyzes the role of the COSO Internal Control Framework and internal control guidelines for sustainability reporting, aiming to enhance the reliability and transparency of Environmental, Social, and Governance (ESG) reports within the banking sector. Drawing on international theoretical foundations and practical application at several Vietnamese commercial banks, the paper identifies challenges related to legal frameworks, human resources, and technology. Simultaneously, it highlights the opportunities to boost reputation, attract green investment, and adapt to global standards. Based on this, the article proposes key policy recommendations to promote the widespread and effective adoption of the COSO Framework in sustainability reporting within Vietnam's banking system.