IFC and its Partners Host Event on Global Adoption of IFRS Sustainability Disclosure Standards

The International Finance Corporation (IFC), in collaboration with the Swiss State Secretariat for Economic Affairs (SECO), the IFRS Foundation International Sustainability Standards Board, and the UN Sustainable Stock Exchanges Initiative (UN SSE) hosted the event on Effective Implementation of IFRS Sustainability Disclosure Standards Through Strategic Partnerships. The session gathered over 280 representatives from standard-setters, regulators, industry leaders and practitioners to discuss the adoption of the IFRS Sustainability Disclosure Standards (ISSB standards) as a global baseline for sustainability reporting to enhance transparency and accountability, creating a unified framework for sustainability reporting across industries and jurisdictions. The event featured insights from notable speakers, including Beatrice Maser (World Bank), Elizabeth Seeger (ISSB), Anthony Miller (UN SSE), and Meaghan McGrath (IFC).

Key findings emphasized notable progress in the convergence of reporting frameworks, the pivotal role of partnerships in facilitating adoption and capacity-building, and the significance of robust ESG disclosures for achieving sustainable growth.

Panelists addressed questions on challenges for emerging markets, the business case for ISSB standards, and the role of financial institutions in supporting the adoption journey. 

The recording of the discussion is available HERE.

A detailed event summary for further insights into the discussions and practical advice shared by the panelists is also available HERE.

The presentations can be downloaded HERE.

Convergence of Sustainability Standards 

The discussion highlighted the significant advancements made in converging sustainability reporting frameworks, with the IFRS Sustainability Disclosure Standards emerging as a global baseline. This shift simplifies reporting for companies by creating consistent, comparable disclosures across jurisdictions.

Partnerships and Capacity Building in Emerging Markets 

The importance of partnerships emerged as a core theme, especially in driving ISSB standards adoption in emerging markets. By collaborating with organizations such as SECO and UN SSE, the IFRS Foundation and IFC have already supported the adoption and implementation of the ISSB standards, particularly in emerging markets like Bangladesh and Jordan.  Currently 20 countries have either adopted or are in process of adopting ISSB standards. IFRS Foundation plan is to reach an additional 180 countries achieving a similar level of adoption as for the IFRS accounting standards. Initiatives like IFC’s Beyond the Balance Sheet platform IFC’s EDGE program, IFC’s Financial Institutions Advisory help equip regulators, companies, and financial institutions with practical tools for sustainability and climate reporting.

Interoperability and Alignment with ESRS 

The IFRS Foundation’s focus on interoperability with other frameworks, such as the European Sustainability Reporting Standards (ESRS), is pivotal for global adoption. The “interoperability guide” published by the IFRS Foundation helps companies harmonize ISSB and ESRS requirements, easing cross-jurisdictional reporting.

Ensuring Accessibility and Relevance Through Materiality 

With a materiality-based approach, the ISSB standards ensure that disclosures are tailored to the company’s business context, focusing on sustainability-related risks and opportunities that impact financial performance. Proportionality mechanisms make it feasible for companies of all sizes, particularly small and medium-sized enterprises (SMEs), to adopt these standards.

Looking Ahead: ISSB Research on Biodiversity and Human Capital 

The IFRS Foundation discussed its ongoing research projects focused on biodiversity and human capital, highlighting its commitment to developing comprehensive standards that address a broader spectrum of sustainability risks and opportunities.

With partnerships, alignment efforts, and capacity building, the ISSB standards are set to provide companies worldwide with a clear path for sustainability reporting, enabling them to meet growing expectations for transparency and responsible investment.

For more information, access the full video recording here and explore the event summary for an in-depth look at the issues and questions discussed here. The presentations can be downloaded here.