The IFC and the IFRS Foundation recently unveiled a strategic partnership aimed at bolstering sustainability and climate reporting across emerging markets and developing economies.
This announcement was made during the Climate Action Week in London, marking a significant step towards integrating these regions into the global framework of sustainable finance.
IFC Global Manager, Corporate Governance and ESG Advisory, Knowledge and Learning, Martine Valcin highlighted the importance of this collaboration. “Today marks a pivotal moment as we join forces with the IFRS Foundation in advancing sustainability and climate reporting. Our combined efforts are set to drive significant strides in standardising and enhancing transparency, ensuring that EMDEs are not left behind in the global shift towards sustainable finance,” she stated.
The partnership centres on the deployment of the IFRS Foundation’s International Sustainability Standards Board (ISSB) inaugural Standards, issued in June 2023. These standards aim to provide consistency and comparability in sustainability-related financial disclosures, facilitating better investment decisions in global markets. Jurisdictions representing about 55% of the world’s GDP are moving towards adopting these standards, showcasing their broad acceptance and potential impact.
Furthering this initiative, the IFRS and IFC plan to develop toolkits, research publications, and training programmes to promote the standards’ adoption in EMDEs. Additionally, tailored technical assistance will support effective implementation, enhancing the quality of reporting and contributing to more transparent, sustainable financial practices.
ISSB Vice-Chair Jingdong Hua expressed enthusiasm about the partnership. “We are proud to collaborate with IFC, uniting our commitment to high-quality sustainability and climate-related financial reporting with their deep market insights and global reach. This partnership will expand our impact, helping enhance the quality of sustainability and climate-related financial reporting worldwide, especially in emerging markets and developing economies,” he said.
This initiative builds on IFC’s existing efforts such as the Beyond the Balance Sheet programme and the Sustainable Banking and Finance Network (SBFN), aimed at improving sustainability practices and fostering a robust, transparent financial ecosystem in EMDEs.
As this partnership propels forward, it promises to secure a more sustainable future for financial markets, safeguarding against environmental risks, and enabling the private sector to adapt and thrive in an evolving economic landscape.
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