The roadmap, which is ac­com­pa­nied by several document, including a report on promoting cli­mate-re­lated dis­clo­sures, notes that the goal of international ini­tia­tives in the area of financial dis­clo­sures must be to achieve globally con­sis­tent, com­pa­ra­ble, and de­ci­sion-use­ful public dis­clo­sures by firms of their cli­mate-re­lated financial risks. To further this overall goal, es­tab­lish­ing international standards is important, including ac­com­mo­dat­ing in­ter­op­er­abil­ity between a global baseline of international standards and national and regional ju­ris­dic­tion-spe­cific re­quire­ments.

Therefore, the FSB welcomes the IFRS Foun­da­tion’s program of work to develop a baseline global sus­tain­abil­ity reporting standard under robust gov­er­nance and public oversight, built from the TCFD framework and the work of an alliance of sus­tain­abil­ity stan­dard-set­ters, involving them and a wider range of stake­hold­ers closely, including national and regional au­thor­i­ties.

The FSB surveyed its members in the first half of 2021 to explore national/regional practices (current or planned) of financial au­thor­i­ties on promoting cli­mate-re­lated dis­clo­sures. The survey responses indicated that most ju­ris­dic­tions strongly support the de­vel­op­ment of a common global baseline of international reporting standards on climate, with many ref­er­enc­ing the ongoing work of the IFRS Foun­da­tion. They also signaled that international co­or­di­na­tion on re­quire­ments to cli­mate-re­lated dis­clo­sures is critical and that reg­u­la­tory and su­per­vi­sory frag­men­ta­tion must be prevented.

The roadmap notes that the FSB can play an important role in global co­or­di­na­tion, including promoting adoption of the an­tic­i­pated international reporting standards developed by the ISSB, once developed and if endorsed, as a global baseline. Such in­ter­na­tion­ally agreed standards for dis­clo­sures as a global baseline would not preclude au­thor­i­ties from going further or at a faster pace in their ju­ris­dic­tions. The FSB states that it will continue to act as an international forum for sharing ex­pe­ri­ences across ju­ris­dic­tions, promoting best practices, and con­tribute to dis­cus­sions in other international fora (such as through COP26 and G7 / G20 meetings) and will continue to support the IFRS Foun­da­tion’s work to develop a proposal for a baseline global sus­tain­abil­ity reporting standard under robust gov­er­nance and public oversight. As part of this work, the FSB en­cour­ages the IFRS Foun­da­tion to address the con­nec­tiv­ity between proposed sus­tain­abil­ity reporting standards to be developed by the ISSB and existing financial accounting standards. Con­di­tional on the en­dorse­ment of this standard, the FSB will encourage FSB member ju­ris­dic­tions to consider the ISSB’s standard for use for cross-bor­der purposes and when setting sus­tain­abil­ity-re­lated dis­clo­sure re­quire­ments, within the context of in­di­vid­ual ju­ris­dic­tions’ reg­u­la­tory and legal re­quire­ments and in a way that promotes con­sis­tent and com­pa­ra­ble sus­tain­abil­ity dis­clo­sures across ju­ris­dic­tions.

The actions and de­liv­er­ables are described in detail in the roadmap with an in­dica­tive timeline for each of these actions and de­liv­er­ables provided in tabular format on page 12 of the document. Please click for the following ad­di­tional in­for­ma­tion on the FSB website:

• FSB Roadmap for Ad­dress­ing Cli­mate-Re­lated Financial Risks
• Report on Promoting Cli­mate-Re­lated Dis­clo­sures
• Access to ad­di­tional documents published