IOSCO Adopts Workplan on Sustainable Finance
The International Organization of Securities Commissions (IOSCO) adopted and set out a workplan for 2022, to develop sustainable finance and mitigate greenwashing.
As part of the workplan, IOSCO will:
- conduct a timely and thorough review of the soon-to-be-published IFRS International Sustainability Standards Board (ISSB) Exposure Drafts of proposed climate and general sustainability disclosure requirements as well as of the final standards when they are produced. If IOSCO determines that the IFRS Sustainability Standards are fit for purpose, its decision would provide all 140 IOSCO member jurisdictions with the basis to decide how they might adopt, apply, or be informed by the ISSB standards.
- push forward work to develop assurance standards. IOSCO has identified independent assurance of the quality of corporate reporting of sustainability information as a key element of building trust in sustainability reporting.
- has committed to an in-depth review of carbon markets to identify the vulnerabilities in nascent voluntary carbon markets as well as of the transparency and integrity in the functioning of carbon markets from the perspective of financial regulation.
- step-up its engagement with national regulators and market participants to push for the implementation of its recommendations addressed to asset management and environmental, social, and governance (ESG) ratings and data providers.
IOSCO also published a summary of the March meeting of the IFRS Foundation Monitoring Board with the IFRS Trustees and the IASB and ISSB leadership in Frankfurt. The meeting was the first between the Monitoring Board and the IFRS Foundation leadership in person since the creation of the ISSB was announced at the COP26 in Glasgow in November 2021. The Monitoring Board discussed the ongoing activities of the International Accounting Standards Board, the findings of its agenda consultation, and the work on digital financial reporting. The Monitoring Board members also discussed the progress made by the International Sustainability Standards Board in developing a comprehensive global baseline of high-quality sustainability disclosure standards to meet investor needs. The Monitoring Board focused in its interaction with the Trustees on the due process to be followed by the ISSB in developing its standards and its workplan, while responding in an agile way to urgent calls from stakeholders to deliver the ISSB’s standards in due time, particularly on climate, and to build appropriately on existing frameworks. The Monitoring Board also discussed connectivity between the work of the ISSB and the IASB.
Related Links
Keywords: International, Banking, Securities, Sustainable Finance, ESG, Greenwashing, Disclosures, Reporting, Sustainability Standards Board, Climate Change Risk, Workplan, Work Priorities, ISSB, IFRS, IOSCO
Featured Experts
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Previous Article
SRB Issues Multiple Regulatory Updates in March 2022Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
