On 28 June 2021, the International Organization of Securities Commissions (IOSCO) issued a report on issuers’ sustainability-related disclosures.

The report:

  • Provides background and context to IOSCO’s work in the area of sustainability disclosures.
  • Summarises the work that IOSCO has done to develop its vision for an International Sustainability Standards Board (ISSB) under the International Financial Reporting Standards Foundation. It presents the conclusions from engagement with asset managers across Sustainable Finance Taskforce jurisdictions to better understand the sustainability information they need to inform their investment activities, comparing these needs with the information they are currently receiving from investee companies.
  • Considers the materiality lens for sustainability-related reporting standards, which has been an important topic of discussion in the context of ongoing sustainability reporting initiatives.
  • Sets out three priority areas for improvement in corporates’ sustainability-related disclosures and goes on to present IOSCO’s vision for how these priorities could be delivered by the ISSB.
  • Assesses how well standards that build on the existing content of the Taskforce on Climate-related Financial Disclosures, and the alliance of leading sustainability reporting organisations would meet investors’ needs.
  • Examines a potential coordination mechanism to ensure that the ISSB’s standards keep pace with the dynamic evolution of the market’s sustainability-related information needs, and that it can interoperate effectively with – and promote consistency in – sustainability-related reporting requirements that may be set at the regional or jurisdictional level.
  • Covers IOSCO’s next steps as it works with the IFRS Foundation and other stakeholders to help shape the future reporting architecture.