Initiative to facilitate the role of ISSB Standards as a global passport announced at IFRS Sustainability Symposium

The International Sustainability Standards Board’s (ISSB) Symposium convened today in London, gathering delegates from over 45 jurisdictions to focus on the implementation of ISSB Standards.

In his keynote, ISSB Chair Emmanuel Faber announced the significant expansion of the Jurisdictional Working Group. This initiative will facilitate multilateral discussions among regulators on how ISSB Standards can serve as a global passport, benefiting capital markets worldwide and addressing emerging cross-border issues.

As jurisdictions introduce sustainability-related disclosure requirements there is a need to address potential fragmentation. The introduction of passporting provisions, so that jurisdictions accept reports prepared in accordance with the ISSB Standards as issued by the ISSB—accommodating jurisdiction-specific conditions as needed—will help lower costs for preparers and reduce frictions in the system to deliver efficiencies and comparable information for capital markets and preparers.

The expansion of the new Jurisdictional Adopters Working Group responds to the growing number of jurisdictions—currently around 40—planning to use ISSB Standards and the need for a mechanism to help stakeholders discuss global passporting arrangements.

A new Jurisdictional Rationale Guide for the adoption or other use of ISSB Standards and accompanying tool unveiled at the Symposium explore the objectives motivating jurisdictions and driving this momentum.

The guide reflects on jurisdictions’ experiences and their reasons for introducing ISSB Standards, such as strengthening capital markets by informing investors’ capital-allocation decisions and improved cost effectiveness and efficiencies for preparers.

Emmanuel Faber said:

The ISSB Standards are being firmly established as the global baseline, covering around 40 per cent of global capital markets. We are committed to maximising the benefits ISSB Standards offer.

The expansion of the Jurisdictional Adopters Working Group and our new guide respond to jurisdictions’ needs for forums, tools and resources supporting the effective use of ISSB Standards as the global passport.