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IFRS Foundation and IFC Announce Partnership to Improve Sustainability Reporting in Emerging Markets

IFRS Foundation and IFC Announce Partnership to Improve Sustainability Reporting in Emerging Markets

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  • Strategic Partnership: IFC and IFRS Foundation collaborate to enhance sustainability and climate reporting in emerging markets.
  • Global Standards: Focus on implementing IFRS Sustainability Disclosure Standards across EMDEs.
  • Capacity Building: Programs include toolkits, research, training, and technical assistance for effective reporting.

The International Finance Corporation (IFC) and the IFRS Foundation have signed a strategic partnership to strengthen sustainable capital markets by improving sustainability and climate reporting in emerging markets and developing economies (EMDEs). Announced during London’s Climate Action Week, this collaboration marks a pivotal step towards standardized and transparent reporting.

Today marks a pivotal moment as we join forces with the IFRS Foundation in advancing sustainability and climate reporting,” said Martine Valcin, IFC Global Manager, Corporate Governance and ESG Advisory, Knowledge and Learning. “Our combined efforts are set to drive significant strides in standardizing and enhancing transparency, ensuring that EMDEs are not left behind in the global shift towards sustainable finance.

In June 2023, the IFRS Foundation’s International Sustainability Standards Board (ISSB) issued two Standards aimed at delivering global consistency and comparability of sustainability-related financial disclosures. Jurisdictions representing about 55% of global GDP are already adopting these Standards.

The partnership focuses on promoting and building capacity for the consistent application of IFRS Sustainability Disclosure Standards in EMDEs. Programs include developing toolkits, publishing research, and conducting training to encourage sustainability reporting. Additionally, the collaboration provides technical assistance and tailored support to help jurisdictions effectively adopt these Standards, leveraging IFC’s initiatives in Bangladesh and Jordan.

We are proud to collaborate with IFC, uniting our commitment to high-quality sustainability and climate-related financial reporting with their deep market insights and global reach,” mentioned Jingdong Hua, Vice-Chair of the ISSB. “This partnership will expand our impact, helping enhance the quality of sustainability and climate-related financial reporting worldwide, especially in emerging markets and developing economies. It plays a critical role in bringing structured and reliable sustainability information to the forefront of global markets, facilitating investments.

Related Article: GHG Protocol and IFRS Foundation Partner to Enhance GHG Emissions Reporting Standards

Building on IFC’s efforts, such as the Beyond the Balance Sheet program and the Sustainable Banking and Finance Network (SBFN), this partnership aims to future-proof financial markets against environmental risks. It also supports the private sector in evolving towards resilient business models and promotes the transparency demanded by global investors and stakeholders.

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