IOSCO Launches Network to Support ISSB Standards Adoption

The International Organization of Securities Commissions (IOSCO) has announced the establishment of a dedicated network to promote the adoption and utilization of the IFRS Sustainability Disclosure Standards (ISSB Standards). This initiative, developed in collaboration with the International Sustainability Standards Board (ISSB), will initially include 32 IOSCO members from its Growth and Emerging Markets (GEM) Committee, representing 31 jurisdictions.

Diverse Membership Across 31 Jurisdictions

The GEMC Network brings together a wide array of jurisdictions, including Abu Dhabi, Argentina, the Bahamas, Bahrain, Bangladesh, Belize, Brazil, Brunei, Chile, China, Egypt, Georgia, Ghana, India, Indonesia, Jordan, Kenya, Kuwait, Malaysia, Mexico, Morocco, Panama, Qatar, Saudi Arabia, South Africa, Sri Lanka, Thailand, Türkiye, Uruguay, Zambia, and Zimbabwe. This diverse representation underscores a global commitment to sustainability-related corporate reporting. Additionally, several other jurisdictions have expressed interest in joining the network in the coming months.

Leading the Way in Sustainability Reporting

Most GEMC members joining the network are taking proactive steps toward implementing sustainability-focused corporate reporting. At the time of joining, these members are at various stages, including executing roadmaps for ISSB Standards implementation, developing strategic plans, building awareness, or familiarizing themselves with the standards.

The network offers members opportunities to enhance their capabilities, particularly in supervisory and enforcement aspects of the ISSB Standards. It also facilitates knowledge-sharing sessions, such as deep dives into the Jurisdictional Guide and other educational resources, to support effective adoption and assess market readiness.

Regional Collaboration and Capacity Building

Through this network, GEMC members will gain assistance in developing local capacity to meet ISSB Standards requirements. The platform also fosters regional collaboration, enabling jurisdictions to share insights and best practices.

The collective strength of the GEMC members in the network is significant, representing:

> 4.3 billion people in emerging and developing economies—over half of the world’s population.

> Over 90% of BRICS economies’ GDP and market capitalization.

> Nearly half of Africa and the Middle East’s GDP and 60% of their market capitalization.

> More than two-thirds of Latin America and the Caribbean’s GDP and 85% of its market capitalization.

Investor Demand Driving Global Standards

The ISSB Standards, issued in June 2023, were developed in response to investor demand for consistent, comparable, and decision-useful sustainability disclosures. These standards aim to streamline global reporting and provide reliable information to capital market participants. Following an independent review, IOSCO endorsed the ISSB Standards in July 2023, encouraging members to adopt or align with these standards.

Since the endorsement, 56 jurisdictions—spanning both developed and emerging markets—have adopted or are using the ISSB Standards. These jurisdictions collectively account for nearly 60% of global GDP, over 40% of global market capitalization, and more than half of global greenhouse gas emissions.

Jean-Paul Servais, Chairman of the IOSCO Board, said: “We have seen a strong interest from our Growth and Emerging Markets members wanting to introduce the ISSB Standards into their respective regulatory frameworks. These members are willing to implement international standards that enhance international consistency and comparability of climate-related and other sustainability-related disclosures for investors. We are also acutely aware that Growth and Emerging Markets members have signalled a strong desire for support to help them progress in their adoption or other use of the ISSB Standards. This dedicated Network will offer them expert support with the help of the ISSB and other partners.”

Emmanuel Faber, ISSB Chair, said: “We are delighted to see considerable interest from emerging markets jurisdictions towards adopting the ISSB’s global baseline of sustainability disclosures for capital markets. We are also pleased to continue and further enhance our collaboration with IOSCO by supporting Network members on their jurisdictional adoption journeys. Doing so will help them align their sustainability-related disclosure requirements with the global baseline, connecting them to global capital pools and investors seeking new investment opportunities. This progress is also important to all other jurisdictions because multinational companies with global supply chains will stand to benefit from the availability of comparable data and disclosures from across the value chain and such disclosures will facilitate trade.”

Dr. Mohamed Farid Saleh, Chairman of the GEM Committee and Vice-Chair of the IOSCO Board said: “I am delighted to see several emerging markets taking clear steps towards adoption or other use of the ISSB Standards and I urge them to complete the efforts to avail the Standards in different languages for speed of adoption or other use. I commend the IFRS Foundation’s engagement with the IOSCO Growth and Emerging Markets Committee and the establishment of a new Network to facilitate enhanced capacity building to assist securities regulators in this journey.”

Enhanced Collaboration and Support

Earlier in 2024, IOSCO deepened its collaboration with the ISSB and strengthened its partnership with the World Bank to support jurisdictions in adopting the ISSB Standards. In May 2024, the IFRS Foundation released the Inaugural Jurisdictional Guide and a Regulatory Implementation Programme Outline, providing critical resources for jurisdictions navigating ISSB Standards adoption.

IOSCO has complemented these efforts with an enhanced capacity-building program designed to equip jurisdictions with the necessary expertise for successful implementation. This initiative is expected to play a pivotal role in driving global sustainability reporting forward.