The IOSCO Foundation launched a global network to support the adoption of ISSB sustainability reporting standards, especially in emerging markets. With 31 jurisdictions, including China and Brazil, representing key economies, the initiative aims to enhance local capacity and promote consistent sustainability disclosures. A parallel project with the IFC targets emerging markets to boost transparency and integrity.

IOSCO, the international policy forum and standard-setting body for securities regulators, has launched an initiative, the Growth and Emerging Markets Committee (GEMC ) Network , to support the adoption of sustainability reporting standards developed by the ISSB (IFRS Foundation) in emerging markets.

The launch of this network comes after the publication, last year, of the first sustainability reporting standards by the International Sustainability Standards Board (ISSB) of the IFRS Foundation. In particular, the International Sustainability Standards Board's (IFRS S1) and the climate one (IFRS S2) were introduced in June 2023.

These standards were created by IOSCO with the aim of providing investors with homogeneous and globally consistent information on the risks and opportunities related to the sustainability of companies, in order to support more informed and responsible investment decisions.

Following the publication of these standards, IOSCO urged regulators around the world to integrate these new standards into their local sustainability reporting regulations. A total of 30 jurisdictions, representing approximately 60% of global GDP, have taken steps to adopt or otherwise use the ISSB standards.

According to IOSCO, the new network will primarily be aimed at supporting jurisdictions in emerging markets in their adoption of ISSB standards and will provide support in building local sustainability capacity, as well as a platform to facilitate the exchange of information at the regional level.

The network will also include jurisdictions that are already adopting ISSB standards, as well as those that are considering integrating them into their own regulations. At launch, the network will include members of IOSCO's Growth and Emerging Markets Committee (GEMC), representing 31 jurisdictions, including countries of significant economic importance such as China, Brazil and Mexico.

Together, the nations participating in the network represent more than 90% of the GDP of the BRICS economies, almost half of the GDP of Africa and the Middle East, and more than two-thirds of the GDP of Latin America and the Caribbean. And the international forum noted that other jurisdictions have already expressed interest in joining the network.

The IFRS Foundation has recently launched another parallel initiative aimed at improving sustainability reporting in emerging markets and developing economies (EMDEs).

This project involves a partnership with the International Finance Corporation (IFC) of the World Bank Group, with the aim of implementing programs that promote capacity building for the correct and consistent application of the IFRS Sustainability Disclosure Standards across all EMDE countries, thus helping to strengthen the integrity and transparency of sustainability information globally.

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