On 25 July, the International Organization of Securities Commissions (IOSCO) announces formal endorsement of the International Sustainability Standards Board (ISSB) standards.
These sustainability disclosure standards, known as IFRS S1 and IFRS S2, were issued last month following an 18-month consultation period, and set a comprehensive global baseline for disclosing sustainability-related financial information:
- IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information; and
- IFRS S2 Climate-related Disclosures.
The IOSCO also called on regulators worldwide to consider the adoption of these standards within their respective jurisdictions “in a way that promotes consistent and comparable climate-related and other sustainability-related disclosures for investors.”
“After a detailed analysis, IOSCO has determined that the ISSB standards are appropriate to serve as a global framework for capital markets to develop the use of sustainability-related financial information in both capital raising and trading and to help globally integrated financial markets accurately assess relevant sustainability risks and opportunities,” IOSCO said in a statement on Tuesday, 25 July.
“This is a critical moment in advancing IOSCO’s goal of improving climate-risk disclosure for investors,” said IOSCO chair Jean-Paul Servais, announcing the endorsement. “Investors are demanding better information about sustainability risks and opportunities, and the G20, the G7, and the FSB [Financial Stability Board] rely on IOSCO to assess whether the ISSB Standards are fit for purpose for capital markets.”
IOSCO’s assessment report is published here.
Deeply understanding the place of sustainability disclosures among global challenges which are hindering the transition to a green economy and reaching sustainable development goals, at BR-AG we are pursuing the goal of building a common understanding of data requirements for sustainability disclosures across jurisdictions.
Bringing innovative digitization projects to life on both national and cross-national levels, we are supporting regulators and national competent authorities by conducting analysis and advising on the application and impact of EU and global sustainable finance-related initiatives, like ISSB Reporting Standards, on national regulatory frameworks, helping with the preparation of national competent authorities’ roadmaps to adopt new regulations and policies, development and maintenance of the related digital taxonomies and the comprehensive guidance alongside.
As we examine challenges governments and regulators face when adopting ISSB Standards in their local jurisdictions – get in touch with our experts to learn how we can help you to take a lead in it within the context of your specific jurisdictional arrangements and in a way that promotes consistent and comparable sustainability-related disclosures: