IOSCO identifies key issues to focus on when evaluating the ISSB standards

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Jul 27, 2022

On July 27, 2022, the International Organization of Securities Commissions (IOSCO) released a statement from its recent Board meeting, where they welcomed the strong stakeholder engagement on proposals for a comprehensive global baseline of sustainability disclosures for capital markets. Board members agreed the criteria which IOSCO will use to assess the ISSB standards and have also identified the key issues for IOSCO to focus on.

The Board specifically discussed three key practical issues of proportionality and implementation to be considered:

  • ensuring the proposed standards can truly serve as an effective global baseline under either a voluntary or mandatory regime, including by considering how to provide for the scaling and phasing-in of requirements to accommodate issuers with differing degrees of maturity in sustainability reporting;
  • how the ISSB can best assist implementation by clarifying definitions and providing additional guidance and examples where necessary;
  • how and when to incorporate the proposed industry-based disclosure data points, recognizing on the one hand that industry-specificity is highly valued by investors, while on the other that some data points may initially be challenging for some issuers.

The statement on the IOSCO website notes that the due process for potential endorsement will begin after the ISSB has issued its final standards. It also states that IOSCO has begun work in collaboration with the international standard setters for audit and assurance to promote a common global approach to independent and high-quality assurance of issuers’ sustainability disclosures.

Review the full statement on the IOSCO's website.

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