On 14 March 2022, the International Organization of Securities Commissions (IOSCO) published its work plan to develop sustainable finance.

Among other things IOSCO plans to review the soon-to-be-published IFRS International Sustainability Standards Board (ISSB) Exposure Drafts of proposed climate and general sustainability disclosure requirements, as well as the final standards when they are produced. The IFRS Sustainability Standards will provide all 140 IOSCO member jurisdictions with the basis to decide how they might adopt, apply or be informed by the ISSB standards. The IOSCO has also committed to an in-depth review of carbon markets to identify the vulnerabilities in nascent voluntary carbon markets, as well as the transparency and integrity in the functioning of carbon markets from the perspective of financial regulation.

The IOSCO will also step up its engagement with both national regulators and market participants to push for the implementation of its recommendations addressed to asset management and ESG ratings and data providers.

Rodrigo Buenaventura, head of the Spanish regulator and one of the leaders of this part of IOSCO’s work plan, said “IOSCO has explained very clearly to market  participants how green-washing can be avoided. We need everyone in the securities sector to work with us now to promote good practices and call out greenwashing. Building trust through high standards of behavior is critical so that investment products described as sustainable actually are.”