The Trustees of the IFRS Foundation proposed amendments to the Constitution of the IFRS Foundation to accommodate the potential formation of the new International Sustainability Standards Board within the governance structure of the organization. The amendments include revisions to the objectives of the IFRS Foundation and the institutional arrangements for the International Sustainability Standards Board. The consultation is open for comments until July 29, 2021. The Trustees also published a feedback statement summarizing their responses to the feedback received on the September 2020 consultation on sustainability reporting. The feedback constituted about 577 responses, which indicate growing and urgent demand for global standards and broad support for the creation of a new sustainability standards board within the governance structure of the IFRS Foundation.
The Trustees have proposed targeted amendments to the Constitution to determine whether the proposed governance structure would provide legitimate oversight of the standard-setting by a new board as well as to determine whether the proposed amendments are proportionate to the strategy of IFRS Foundation in relation to the potential work of the new board. The Trustees invite comments on the proposals to amend the Constitution to:
- Expand the objectives of the IFRS Foundation to create a board that will set IFRS sustainability standards under the governance structure of the IFRS Foundation
- Set out the structure and function of the new board
- Align other parts of the Constitution with the creation of the new board
Approval by the Trustees of the proposed amendments to the Constitution will be conditional on the establishment of the new board. The Trustees will make a final determination based on the feedback received to the exposure draft and subject to the ongoing work to satisfy the key requirements for success. The Trustees’ final determination is expected to be made in the fourth quarter of 2021. Assuming that the Trustees do finally determine to create such a board, the plans will be announced at the United Nations Climate Change Conference (also known as COP26), which is scheduled to be held in November 2021.
Comment Due Date: July 29, 2021
Keywords: International, Banking, Insurance, Securities, Sustainability Standards Board, Climate Change Risk, ESG, COP 26, Reporting, SSB, IFRS
Previous ArticleECB Updates Annexes to AnaCredit Reporting Manual in April 2021
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.
HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.
EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).
BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.
FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.
EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.
The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.