G20 continues convergence push, signals support for Rio+20

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20 Jun 2012

The Group of 20 (G20) has released a Leaders Declaration and supporting documents from the G20 Leaders Summit held in Los Cabos, Mexico on 18-19 June 2012. The declaration includes reference to convergence of accounting standards, and reaffirming a commitment to sustainable development at the 2012 United Nations Conference on Sustainable Development (Rio+20), which may endorse sustainability reporting.

Much of the focus of the Leaders Declaration is on economic growth and jobs in the context of the current economic climate in order to "work collectively to strengthen demand and restore confidence with a view to support growth and foster financial stability".

In referencing financial sector reform and fostering financial reform,  the declaration states:

We support continuing work to achieve convergence to a single set of high-quality accounting standards.

Within the broader topic of sustainable development, the declaration states the following:

We commit to continue to help developing countries sustain and strengthen their development through appropriate measures, including those that encourage inclusive green growth. We will reaffirm our commitment to sustainable development at the 2012 United Nations Conference on Sustainable Development (Rio+20). We commit to maintaining a focus on inclusive green growth as part of our G20 agenda and in the light of agreements reached at Rio+20 and the United Nations Framework Convention on Climate Change (UNFCCC).

The Rio+20 conference is being held on 13-22 June 2012 and as we have previously reported, is considering a call for mandatory sustainability or integrated reporting by the world's largest companies.

Consistent with the theme of fostering financial stability, the declaration supports various initiatives in response to the global financial crisis, including the Basel capital and liquidity framework; the framework for global systemically important financial institutions (G-SIFIs), resolution regimes, over-the-counter (OTC) derivatives reforms, shadow banking, and compensation practices.  The declaration also endorses the recommendations and the revised Financial Stability Board (FSB) Charter for placing the FSB on an enduring organisational footing, with legal personality, strengthened governance, greater financial autonomy and enhanced capacity to coordinate the development and implementation of financial regulatory policies.

Click for Leaders Declaration — Los Cabos (link to the G20 website).

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