📊IFRS Foundation Makes Waves with ISSB Standards Adoption
The IFRS Foundation has published profiles showcasing 36 jurisdictions adopting ISSB Standards, highlighting significant global progress in sustainability reporting.
Key Points
- •🌍 Global Reach: 36 jurisdictions have adopted or are finalizing steps to introduce ISSB Standards.
- •📋 Transparency: 17 detailed jurisdictional profiles published, showcasing alignment with ISSB Standards.
- •🔍 Commitment: 14 jurisdictions aim for full adoption, while others target climate requirements or partial incorporation.
- •📈 Market Impact: Increased quality of sustainability-related information benefits global capital markets.
- •🗣️ Expert Insight: Emmanuel Faber, ISSB Chair, emphasizes the importance of clarity and reliable information for investors.
🌍 Global Adoption
The IFRS Foundation has announced that 36 jurisdictions are now either adopting or finalizing steps to introduce the IFRS Sustainability Disclosure Standards (ISSB Standards). This move is a significant stride towards a global baseline of sustainability disclosures, providing much-needed transparency for capital markets.
The published profiles offer a snapshot of each jurisdiction’s alignment with the ISSB Standards, detailing their sustainability-related disclosure requirements. This effort mirrors the approach of the International Accounting Standards Board, ensuring that jurisdictions have clearly defined their stance on sustainability reporting.
📋 Jurisdictional Profiles
Of the 17 jurisdictions profiled, 14 have committed to fully adopting the ISSB Standards, two aim to adopt the climate requirements, and one plans to partially incorporate them. These profiles include countries like Australia, Brazil, Hong Kong SAR, and Mexico, showcasing a diverse range of global participation.
In addition to these profiles, 16 jurisdictional snapshots provide a high-level overview of other regions still in the process of finalizing their approach. For instance, Canada and Japan have proposed standards functionally aligned with ISSB Standards, while others are still considering their adoption strategy.
📈 Impact on Global Markets
The alignment with ISSB Standards by these jurisdictions represents a significant portion of global market capitalization. This progress is expected to enhance the quality of material information on sustainability-related risks and opportunities, ultimately benefiting investors worldwide.
"The ISSB Standards are bringing clarity to investors on the risks and opportunities lying in value chains across time horizons in a rapidly changing world," said Emmanuel Faber, ISSB Chair. This clarity is crucial for investors, banks, and insurers struggling with the lack of appropriate, comparable, and reliable information.
🗣️ Expert Insights
Emmanuel Faber, ISSB Chair, highlighted the importance of these profiles in providing a detailed overview of the current state-of-play for investors. He noted the growing interest from regulators and the policy rationale for adopting ISSB Standards to strengthen access to capital and trade.
As outlined in the Inaugural Jurisdictional Guide, these profiles aim to serve as a reference for investors, preparers, and assurance providers, helping them navigate the complexities of sustainability-related financial disclosures. The IFRS Foundation's ongoing support through the Regulatory Implementation Programme and tools like the Roadmap Development Tool further assist jurisdictions in their adoption journey.