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
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Michael Denton, PhD, PE
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.
Related Articles
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.
