The Trustees of the IFRS Foundation have today signed Memoranda of Understanding (MoUs) with German public and private sector institutions to formalise the partnerships and funding arrangements required to establish the presence of the International Sustainability Standards Board (ISSB) in Frankfurt.
The MoUs mark a key first step towards establishing the ISSB’s global, multi-location presence to support its broad stakeholder base, as announced during the COP26 climate conference in November 2021. The MoUs set out the Foundation’s commitment to establish an ISSB office in Frankfurt. The Frankfurt office will provide the seat of the Board and the office of the ISSB Chair. The office will provide key support functions for the ISSB, including the hosting of board meetings, and will act as a hub for the Europe, Middle East and Africa (EMEA) region.
The signing of the two MoUs—one with public sector institutions and the other with private sector institutions—took place in conjunction with a meeting of the IFRS Foundation Trustees on 1-3 March 2022. The Trustees are responsible for the governance of the International Accounting Standards Board (IASB) and the International Sustainability Standards Board.
The signatories to the MoU with the public sector institutions are the Federal Government of the Federal Republic of Germany and the Government of the State of Hessen, the Cities of Frankfurt am Main and Eschborn. The signatories to the MoU with the private sector organisations are Deutsches Aktieninstitut e.V., Deutsches Rechnungslegungs Standards Committee e.V., Frankfurt Main Finance e.V., Institut der Wirtschaftsprüfer in Deutschland e.V. and Wirtschaftsförderung Frankfurt GmbH.
The Trustees previously announced that Montreal will also host key functions of the ISSB and will act as a hub for the Americas region, enabling close cooperation with the San Francisco office (the Value Reporting Foundation (VRF) has headquarters in San Francisco, and the consolidation of the VRF into the IFRS Foundation is expected to be completed by 30 June 2022).
Arrangements for the ISSB’s Asia-Oceania presence are also being advanced.
Erkki Liikanen, Chair of the IFRS Foundation Trustees, said:
The formalisation of our collaboration with public and private institutions in Germany will enable us to establish the ISSB’s Frankfurt office, which―together with Montreal—will host key functions and facilitate engagement and cooperation with regional stakeholders.
Emmanuel Faber, Chair of the ISSB, said:
Creating a permanent presence in Frankfurt, and soon in Montreal, are important steps on the path to building our global multi-location model. These offices will serve key roles as the ISSB begins its ambitious programme of work. We have much to do.