ISSB at COP28: huge support, knowledge hub launch, and new commitments
This week has seen a huge amount of activity in the sustainability sphere at COP28, including from the International Sustainability Standards Board (ISSB). In a Declaration of Support, nearly 400 organisations from 64 jurisdictions affirmed their commitment to advancing the adoption or use of the ISSB’s Climate Standard as the climate global baseline. They comprise a wide range of stakeholders, including associations representing over 10,000 member companies and investors.
“Climate risks are increasingly having a real effect on companies and capital. Therefore—in response to calls for climate action at COP28—we support the establishment of market infrastructure to enable consistent, comparable climate-related disclosures at a global level,” states the declaration. It demonstrates, says the ISSB, the strong appetite for action-oriented responses to climate risk, and comes as the Board pivots from standards creation to a new action phase after issuing its first two Standards in June.
Reflecting this current focus on implementation, the ISSB’s parent, the IFRS Foundation, has launched the new IFRS Sustainability knowledge hub to support use of the ISSB Standards from next year. It hosts resources developed both by the IFRS Foundation and by a range of third-party organisations, with more to be added over time. The hub is primarily designed to help companies preparing their ISSB disclosures, while also helping auditors, investors, regulators and other stakeholders to advance their understanding of the ISSB Standards.
Erkki Liikanen, Chair of the IFRS Foundation Trustees, addressed COP28 to reflect on progress since the decision to establish the ISSB was announced at COP26, and on coming priorities. He reported that the three key commitments made two years ago have been fulfilled, and confirmed three further commitments to support efficient and resilient capital markets through robust sustainability-related financial disclosures. The IFRS Foundation will implement its capacity building programme so that developing and emerging jurisdictions are better placed to adopt and use the ISSB’s Standards; will advance jurisdictional adoption of the ISSB’s Standards through bilateral dialogues with governments and regulators, continuing to work closely with both IOSCO and the Financial Stability Board; and will advance new standard-setting initiatives to build out the global baseline of sustainability-related disclosures.
He also announced that the IFRS Foundation Trustees have reappointed ISSB Chair Emmanuel Faber for a second term, providing continuity of leadership. This further term will run from 1 January 2025 to 31 December 2027.
Read more on the Declaration of Support here and here, on the knowledge hub here and here, on Erkki Liikanen’s speech here, and on Emmanuel Faber’s reappointment here.
