G20 Leaders support IFRS sustainability standards, seek to fill data gaps, and more
“Sustainable finance is crucial for promoting orderly and just transitions towards green and more sustainable economies and inclusive societies,” say the G20 leaders. They met “to address today’s most pressing global challenges” in Rome on 30–31 October 2021, in the run up to COP26. Their declaration welcomes work by the Financial Stability Board (FSB), including its roadmap for addressing financial risks from climate change. “We also welcome the work programme of the International Financial Reporting Standards [IFRS] Foundation to develop a baseline global reporting standard under robust governance and public oversight, building upon the FSB’s Task Force on Climate-Related Financial Disclosures [TCFD] framework and the work of sustainability standard-setters.”
The G20’s support – and aspirations – for the International Sustainability Standards Board (ISSB), to be led by the IFRS Foundation, are discussed in more detail in the G20 Sustainable Finance Roadmap, released in October. These include wide collaboration and consultation, transparent governance, and an initial focus on climate, broadening to other sustainability issues.
The G20 Rome Leaders’ Declaration is a comprehensive and wide-ranging document, covering pandemic recovery, equality and inclusion, and environmental challenges, among many other issues. Of potential interest to our readers is the section on financial regulation, which builds substantially on FSB work on strengthening the resilience of the non-bank financial intermediation (NBFI) sector, and on enhancing cross-border payments. Digitisation, financial inclusion and the need to address data gaps are also addressed. “Improving data availability and provision, including on environmental issues, and harnessing the wealth of data produced by digitalization is critical to better inform our decisions,” states the declaration, noting the prospect of a new G20 Data Gaps Initiative. “Recognizing the importance of an efficient use of digital tools within public administrations, we will continue to promote agile regulatory frameworks and will provide digital public services that are humancentric, proactive, easy to use and accessible to all.”
One final point with potentially important implications is the agreement of international tax reforms, seeking to address the tax challenges arising from digitisation and to establish a fairer and more stable and tax system.
