climate change / leolintang

Global securities regulators are formally embracing the International Sustainability Standards Board’s (ISSB) climate-disclosure standards, clearing the way for adoption around the world.

Following a comprehensive review, the International Organization of Securities Commissions (IOSCO) has endorsed the ISSB’s final standards for sustainability disclosures, which were published in June following an 18-month consultation process.

“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 for the purpose of helping globally integrated financial markets accurately assess relevant sustainability risks and opportunities,” the global regulatory group said in a release.

IOSCO is now calling on regulators around the world to consider adopting the ISSB standards in their local jurisdictions “in a way that promotes consistent and comparable climate-related and other sustainability-related disclosures for investors.”

IOSCO’s 130 members regulate more than 95% of the world’s financial markets.

Earlier this month, the Canadian Securities Administrators (CSA) said they intend to carry out “further consultations to adopt disclosure standards based on ISSB standards, with modifications considered necessary and appropriate in the Canadian context.”

The CSA pledged to provide an update on that work “in the coming months.”

“This is a critical moment in advancing IOSCO’s goal of improving climate-risk disclosure for investors,” said Jean-Paul Servais, chair of IOSCO’s board.

Alongside the regulators’ blessing, the International Financial Reporting Standards Foundation issued a report outlining forthcoming guidance that will set out a roadmap for implementing the ISSB standards. That guidance is due by the end of the year.

“Widespread regulatory adoption of a global baseline of sustainability-related disclosures through the ISSB standards will secure the consistency and comparability of information that capital markets demand,” said Emmanuel Faber, ISSB chair, in a release.