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.
Keywords: International, Banking, Securities, Sustainable Finance, ESG, Greenwashing, Disclosures, Reporting, Sustainability Standards Board, Climate Change Risk, Workplan, Work Priorities, ISSB, IFRS, IOSCO
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.
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
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The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
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