IOSCO welcomes ISSB sustainability standards and begins review
The International Organization of Securities Commissions (IOSCO) has welcomed the publication of draft climate and general sustainability reporting standards by the International Sustainability Standards Board (ISSB).
Sheldon Mills, co-lead of the workstream on corporate reporting within IOSCO’s Sustainable Finance Task Force, said that it would now begin an in-depth review of the exposure drafts against securities regulators’ expectations. “The group will consider: whether the proposed requirements can serve as an effective global baseline of investor-focussed standards; whether they are fit for purpose in helping financial markets accurately assess sustainability risks and opportunities; and whether they can form the basis for the development of a robust audit and assurance framework.”
Rapid progress is on the agenda, with IOSCO seeking to finalise its endorsement process shortly after the ISSB finalises the standards. IOSCO affirms that its endorsement of the final standards would be a landmark in sustainable finance, and that it would support its members as they consider how to adopt, apply or be informed by the ISSB standards as the baseline for their own sustainable reporting requirements.
The IFRS Foundation Monitoring Board also released its own statement welcoming the publication of the drafts as an important step towards the delivery of a global baseline of high-quality sustainability standards. Jean-Paul Servais, Board Chairman and IOSCO Board Vice Chair, said: “It is remarkable to see the publication of the draft General Requirements and Climate-related Disclosure standards today so soon after the formation of the ISSB as well as the additional activities being undertaken to ensure varied and comprehensive inputs to the consultation.” The Board confirmed that it will continue its oversight role to ensure that these and any future sustainability standards are developed using robust governance, due process, and oversight, with an initial aim of supporting the IFRS Foundation Trustees in bringing the ISSB to quorum.