The IFRS Foundation Trustees announced the establishment of an Eminent Persons Group, chaired by Jean-Claude Trichet, to provide strategic advice and counsel to the Trustees on the proposed formation of the International Sustainability Standards Board (ISSB) and its connectivity with the jurisdictional initiatives. The Trustees encourage stakeholders to respond to the consultation on proposed amendments to the Foundation’s Constitution, which sets out the institutional arrangements to accommodate the formation of the proposed new board within the governance structure of the organization. The consultation period closes on July 29, 2021.
The Eminent Persons Group membership comprises Jean-Claude Trichet, former President of the European Central Bank, as the Chair of the Group; Sheila Bair, former Chair of the US Federal Deposit Insurance Corporation; Nandan Nilekani, Chair and co-founder of Infosys; Guillermo Ortiz, former Governor of Banco de Mexico and former Chair of the Bank of International Settlements; and Min Zhu, former Deputy Managing Director of IMF. The Eminent Persons Group has held its first meeting and will have regular engagement with the Trustees. Its work complements that of the other working groups and committees established by the Trustees to support their work to determine the IFRS Foundation’s role in sustainability-related financial disclosures. In addition to the formation of the Eminent Persons Group, the Trustees also announced:
- IFRS Foundation joined as an observer the International Platform on Sustainable Finance along with other international organizations
- Two webinars on July 07, 2021, where Trustees will provide an update on the sustainability project.
Additionally, the IFRS Chair Erkki Liikanen responded to the G7 Finance Ministers’ Communique regarding global sustainability standards. He said, "We welcome the G7 Finance Ministers’ support for our work to develop the global baseline of sustainability-related financial disclosures and our ongoing dialogue with key stakeholders regarding the proposed establishment of ISSB ahead of COP26."
Keywords: International, Banking, Sustainability Standards Board, ESG, COP26, Climate Change Risk, Disclosures, G7, IFRS
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous ArticleEC Welcomes Agreement on Rules on Secondary Market for NPLs
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.