IFRS Foundation publishes jurisdictional profiles providing transparency and evidencing progress towards adoption of ISSB Standards

Thirty-six jurisdictions have adopted or otherwise used the IFRS Sustainability Disclosure Standards (ISSB Standards) or are in the process of finalising steps towards introducing them into their regulatory frameworks. The IFRS Foundation has published today an initial set of 17 jurisdictional profiles to provide transparency to capital markets which evidences the high degree of alignment with the International Sustainability Standards Board (ISSB) Standards. Publishing these profiles represents a critical step in providing clarity about progress in achieving a global baseline of sustainability disclosures for capital markets.

The profiles include information about each jurisdiction’s stated target for alignment with ISSB Standards and the current status of its sustainability-related disclosure requirements. Profiles are published when a jurisdiction’s approach to sustainability reporting is finalised and no longer subject to consultation, similar to the publication of profiles by the International Accounting Standards Board, the ISSB’s sister board. This is when jurisdictions have formally announced or finalised their decisions on the adoption or other use of ISSB Standards or have otherwise introduced sustainability-related disclosure requirements, including making decisions about which entities are subject to the requirements. These profiles are complemented with the publication of 16 snapshots that provide a high-level overview of other jurisdictions’ regulatory approaches that are still subject to finalisation.

Of the 17 jurisdictions profiled, 14 have set a target of ‘fully adopting’ ISSB Standards, two have set a target of ‘adopting the climate requirements’ of ISSB Standards and one targets ‘partially incorporating’ ISSB Standards. The profiled jurisdictions cover Australia, Bangladesh, Brazil, Chile, Ghana, Hong Kong SAR, Jordan, Kenya, Malaysia, Mexico, Nigeria, Pakistan, Sri Lanka, Chinese Taipei, Tanzania, Türkiye and Zambia.

Of the 16 jurisdictional snapshots published, 12 propose or have published standards (or requirements) that are fully aligned with ISSB Standards (such as Canada) or designed to deliver outcomes functionally aligned with those resulting from the application of ISSB Standards (such as Japan). Three propose standards (or requirements) that incorporate a significant portion of disclosures required by ISSB Standards. And one is considering permitting the use of ISSB Standards. For these jurisdictions, their target approach to adoption is yet to be finalised. Once jurisdictions have finalised their decisions on adoption or other use of ISSB Standards, the IFRS Foundation intends to publish a profile for these jurisdictions.

The strong jurisdictional progress aligned with the ISSB Standards global baseline represents jurisdictions with a significant portion of global market capitalisation and will result in higher quality material information on sustainability-related risks and opportunities for the benefit of global capital markets.

Emmanuel Faber, ISSB Chair, said:

The ISSB Standards are bringing clarity to investors on the risks and opportunities lying in value chains across time horizons in a rapidly changing world. A year ago, we committed to publishing detailed jurisdictional profiles describing adoption of our Standards to complement our Inaugural Jurisdictional Guide. The profiles provide a detailed current state-of-play to investors, banks and insurers who continue to struggle with the lack of appropriate, comparable and reliable information on these critical factors affecting business prospects. We have seen new jurisdictions joining the initial cohort of ISSB adopters every month, with a total of 36 today. 

As also demonstrated by growing interest from the members of the Growth and Emerging Markets Committee of IOSCO, an increasing number of regulators are seeing the policy rationale for the paced adoption of the ISSB Standards to strengthen their jurisdiction’s access to capital and trade, allowing investors to make more informed investment decisions, and companies to attract capital.

As outlined in the Inaugural Jurisdictional Guide, published in May 2024, the profiles aim to serve as the official source of reference for investors, preparers, assurance providers and others interested in sustainability-related financial disclosures. The profiles are based on the Jurisdictional Guide and are developed through an established process of bilateral engagement with jurisdictions and an independent review before being confirmed by representatives of the ISSB. They also serve as a reference for other jurisdictions that have yet to embark on the journey to adopt or otherwise use ISSB Standards and help the IFRS Foundation and Multilateral Development Banks identify capacity building needs.

Ongoing support for jurisdictions

The IFRS Foundation will continue to provide support for jurisdictions through our Regulatory Implementation Programme and invest in expanding the tools and resources available to support jurisdictions considering adoption of ISSB Standards. The recent publication of the Roadmap Development Tool is an example of such support. The Tool helps jurisdictions navigate the main considerations and decision points that are likely to arise as they develop a roadmap for adopting or otherwise using ISSB Standards.

A note on the EU

The description of the EU’s jurisdictional approach as fully adopting ISSB Standards by interoperability based on a jointly published guide, has not been updated in developing these profiles, pending the outcome of the Omnibus process of simplification of the first set of ESRS and its consequences on ESRS’s interoperability with ISSB Standards.