The IOSCO has announced the formation of a dedicated network aimed at supporting the adoption and implementation of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards (ISSB Standards) across its GEMC.
This initiative sees participation from 31 jurisdictions including major emerging economies such as India, China, and Brazil, amongst others, showcasing a unified effort to bolster global sustainability practices.
The newly formed GEMC Network is poised to play a pivotal role in the adoption of sustainability-related corporate reporting requirements, with many members already progressing towards executing or developing roadmaps for ISSB Standards implementation. The network’s establishment is driven by the need for decision-useful, comparable, and reliable sustainability-related disclosures that meet the information needs of investors and other capital market participants globally.
IOSCO’s endorsement of the ISSB Standards in July 2023, after an independent review, underscores the urgency and importance of these standards in enhancing the efficiency of the global reporting landscape. The move is particularly crucial for emerging markets, as it aligns their sustainability-related disclosure requirements with international standards, thereby connecting them to larger global capital pools and facilitating more informed investment decisions.
Jean-Paul Servais, Chairman of the IOSCO Board, emphasized the collective eagerness among GEMC members to integrate the ISSB Standards into their regulatory frameworks. “We have seen a strong interest from our Growth and Emerging Markets members wanting to introduce the ISSB Standards into their respective regulatory frameworks,” Servais noted, highlighting the demand for support in advancing their adoption.
Similarly, ISSB Chair, Emmanuel Faber, commented on the enthusiasm from emerging market jurisdictions towards adopting the global baseline of sustainability disclosures. “We are delighted to see considerable interest from emerging markets jurisdictions towards adopting the ISSB’s global baseline of sustainability disclosures for capital markets,” said Faber. He also stressed the benefits of such standardized disclosures for multinational companies and global trade, enhancing the availability of comparable data across value chains.
As the network progresses, it will focus on building capacity on supervisory and enforcement aspects of the ISSB Standards, setting up detailed discussions on the adoption process, and assessing market readiness. This collaborative effort is expected to facilitate greater information sharing at a regional level, fostering a more connected and transparent global market.
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