🌍IDB and IFRS Team Up for Sustainability
The IDB and IFRS Foundation have joined forces to promote sustainability disclosure standards in Latin America and the Caribbean. This partnership aims to enhance transparency and build trust in capital markets.
Key Points
- •🌎 Global Impact: Partnership to promote IFRS Sustainability Disclosure Standards across Latin America and the Caribbean
- •📅 Action Plan: Focus on knowledge sharing, capacity building, and policy engagement
- •📈 Investor Focus: Standards developed by ISSB to address sustainability-related risks and opportunities
- •💬 Expert Insights: IDB President and IFRS Managing Director emphasize the importance of transparency
- •🤝 Collaboration: Public and private stakeholders working together for regulatory alignment
🌟 A New Era of Transparency
The Inter-American Development Bank (IDB), IDB Invest, and the IFRS Foundation have formalized a strategic partnership to promote the adoption and implementation of the IFRS Sustainability Disclosure Standards across Latin America and the Caribbean. This move is designed to accelerate the adoption of these standards and guide the private sector in their implementation.
At the heart of this initiative is an action plan focused on knowledge sharing, capacity building, and policy engagement. The IFRS Sustainability Disclosure Standards, developed by the International Sustainability Standards Board (ISSB), provide a global baseline for disclosing sustainability-related risks and opportunities, catering to investor needs.
📊 Why It Matters
Ilan Goldfajn, IDB President, summed it up perfectly: > "Transparency builds trust. This partnership is about accelerating the adoption process across the region and helping in its implementation."
Michel Madelain, IFRS Foundation Managing Director, added: > "Our partnership with the Inter-American Development Bank Group will deliver critical support to benefit from the full potential of effective sustainability-related disclosure in the region."
The formalized partnership comes at a pivotal moment of growing momentum around the adoption of these standards in Latin America and the Caribbean.
🚀 The Action Plan
The partnership focuses on three main areas:
- Knowledge Sharing: Developing a policy paper on the benefits of adoption, piloting a self-assessment tool for private banks, and producing a regional case study.
- Capacity Building: Supporting regulators through the IDB and private institutions through IDB Invest to strengthen sustainability and climate-related risk disclosures.
- Advocacy and Policy Engagement: Providing targeted technical assistance and policy dialogue to help countries adopt and implement the IFRS Sustainability Disclosure Standards.
Through this collaboration, the IDB, IDB Invest, and the IFRS Foundation will work with public and private stakeholders to build capacity, address local needs, and promote regulatory alignment.
🌐 About the Organizations
The Inter-American Development Bank (IDB): Founded in 1959, the IDB is dedicated to improving lives across Latin America and the Caribbean by promoting sustainable and inclusive development. The IDB works with the region's public sector to design impactful solutions, leveraging financing, technical expertise, and knowledge.
IDB Invest: As a multilateral development bank, IDB Invest focuses on the economic development of Latin America and the Caribbean through the private sector. With a portfolio of $21 billion in assets and over 394 clients, IDB Invest provides innovative financial solutions and advisory services to promote economic, social, and environmental development in the region.