IOSCO announced today the launch of a dedicated network to support the
adoption and other use of IFRS Sustainability Disclosure Standards (ISSB Standards), with
the support of the International Sustainability Standards Board (ISSB). The Network will start with a group of 32 IOSCO members of its Growth and Emerging Markets (GEM) Committee, representing 31 jurisdictions.
The 31 jurisdictions who are initially joining the GEMC Network for ISSB Standards Adoption or Other Use are a diverse group representing: Abu Dhabi, Argentina, the
Bahamas, Bahrain, Bangladesh, Belize, Brazil, Brunei, Chile, China, Egypt, Georgia, Ghana, India, Indonesia, Jordan, Kenya, Kuwait, Malaysia, Mexico, Morocco, Panama, Qatar, Saudi Arabia, South Africa, Sri Lanka, Thailand, Türkiye, Uruguay, Zambia and Zimbabwe. More jurisdictions have expressed interest in joining in the months ahead.
Most IOSCO members joining the GEMC Network are playing or will be playing a leading role in the adoption of sustainability-related corporate reporting requirements. At the date of joining the network, members are either already executing a roadmap for ISSB Standards implementation, developing a roadmap, building awareness and understanding, or
becoming familiar with the ISSB Standards.
GEM Committee members joining the network expressed strong appetite for the Network,
including to (i) build capacity on supervisory and enforcement aspects of ISSB Standards, (ii) set up deep dives to discuss and understand how the Jurisdictional Guide and other
educational materials can support adoption, and (iii) help them assess market readiness.
Through the Network, GEMC members will benefit from assistance in building local capacity to implement the requirements of the Standards. The Network will also provide a platform for advancing information sharing at a regional level.
Together, the IOSCO GEMC members joining the Network represent:
- 4.3 billion people in Emerging Markets and Developing Economies, more than half of the world’s population
- more than 90% of BRICS economies GDP and their market capitalisation
- nearly half of Africa and the Middle East’s GDP and 60% of their market capitalisation; and
- more than two thirds of Latin America and the Caribbean’s GDP and more than 85% of its market capitalisation.
The ISSB issued the ISSB Standards in June 2023 in response to investor demand for
decision-useful, comparable information and the need for a more efficient global reporting landscape. The ISSB Standards support globally consistent, comparable and reliable
sustainability-related disclosures to meet the information needs of investors and other
participants in the world’s capital markets. After an independent and comprehensive review, in July 2023, IOSCO endorsed the ISSB Standards for capital market use and called on its members to consider ways in which they might adopt, apply or otherwise be informed by the ISSB Standards in their jurisdictions.
Since IOSCO’s endorsement, a total of 56* jurisdictions, both from developed and emerging markets, have already taken action to adopt or otherwise use ISSB Standards (half of these jurisdictions have already finalized their adoption of the ISSB Standards). Together, these jurisdictions represent nearly 60% of global GDP, more than 40% of global market
capitalization, and more than half of global GHG emissions. The Network is intended to support jurisdictions mostly from emerging markets in their adoption journeys and will
comprise both jurisdictions already in the process of adoption or other use and jurisdictions considering adoption or other use.
Jean-Paul Servais, Chairman of the IOSCO Board, said: ‘We have seen a strong interest from our Growth and Emerging Markets members wanting to introduce the ISSB Standards into their respective regulatory frameworks. These members are willing to implement
international standards that enhance international consistency and comparability of climate-related and other sustainability-related disclosures for investors. We are also
acutely aware that Growth and Emerging Markets members have signaled a strong desire for support to help them progress their adoption or other use of the ISSB Standards. This
dedicated Network will offer them expert support with the help of the ISSB and other partners.’
Emmanuel Faber, ISSB Chair, said: ‘We are delighted to see considerable interest from emerging markets jurisdictions towards adopting the ISSB’s global baseline of sustainability disclosures for capital markets. We are also pleased to continue and further enhance our collaboration with IOSCO by supporting Network members on their jurisdictional adoption
journeys. Doing so will help them align their sustainability-related disclosure requirements with the global baseline, connecting them to global capital pools and investors seeking new investment opportunities. This progress is also important to all other jurisdictions because multinational companies with global supply chains will stand to benefit from the availability of comparable data and disclosures from across the value chain and such disclosures will facilitate trade.”
Dr. Mohamed Farid Saleh, Chairman of the GEM Committee and Vice-Chair of the
IOSCO Board, said: ‘I am delighted to see a number of emerging markets taking clear steps towards adoption or other use of the ISSB Standards and I urge them to complete the efforts to avail the Standards in different languages for speed of adoption or other use. I commend the IFRS Foundation’s engagement with the IOSCO Growth and Emerging Markets
Committee and the establishment of a new Network to facilitate enhanced capacity building to assist securities regulators in this journey.’
Earlier this year, IOSCO strengthened its collaboration with the ISSB and enhanced its partnership with the World Bank to assist jurisdictions as they consider their pathways to adopt ISSB Standards.
In May 2024, the IFRS Foundation published the Inaugural Jurisdictional Guide for the adoption or other use of ISSB Standards and a Regulatory Implementation Programme Outline. These documents are already proving to be important additions to the toolkit
available to jurisdictions as they navigate their approaches towards the adoption or other use of ISSB Standards. IOSCO has since been actively supporting these jurisdictions through an enhanced capacity-building program, designed to help them build the expertise necessary to adopt the ISSB Standards.
