IFRS sustainability disclosure standards endorsed by IOSCO
In a significant boost for comparable, usable sustainability data, The International Organization of Securities Commissions (IOSCO) has given its stamp of approval to the International Sustainability Standards Board’s (ISSB) Standards after a thorough review.
Having engaged extensively with ISSB over the past two years, IOSCO conducted a thorough and independent review of the final standards. As a result, it concluded that the ISSB Standards are well-suited to serve as a global framework for capital markets. They will facilitate the use of sustainability-related financial information for capital raising, trading, and assessing sustainability risks and opportunities in integrated financial markets.
With this endorsement, IOSCO urges its 130 member jurisdictions, representing over 95% of the world’s financial markets, to consider adopting or applying the ISSB Standards in their regulatory frameworks. Several jurisdictions are already taking steps to make the ISSB’s first two Standards mandatory.The goal is to promote consistent and comparable climate-related and other sustainability-related disclosures for investors.
IOSCO’s endorsement reinforces the ISSB Standards’ suitability for capital market use, facilitating robust data collection and analysis.To smooth the implementation journey, the IFRS Foundation has released a high-level roadmap outlining its strategy to support jurisdictional adoption, with an adoption guide for regulators expected later this year.
Read the announcement from IOSCO here, from ISSB here, and find ISSB’s roadmap for adoption here.
