The ISSB Partnership Framework at COP27 is a key announcement towards the implementation of climate-related disclosure standards in 2023

Since the establishment of the International Sustainability Standards Board (ISSB) announced at Glasgow’s COP26 the IFRS Foundation has delivered on its commitments to establish the board, consolidate the voluntary disclosure landscape, embed a global footprint, and consult on proposed standards with a view to set the foundations of the global baseline of sustainability-related financial disclosures. The ISSB’s objective to provide better information for better economic and investment decisions continues to be driven forward in response to demand from international stakeholders. Today, Tuesday 8 November, the ISSB is announcing further steps in its delivery of the architecture needed for a global baseline, as well as partnerships agreed at Sharm El-Sheikh’s COP27, that will help jurisdictions prepare for its implementation. The Partnership Framework is a climate-related disclosure standards for 2023.

climate-related disclosure standards

Partnership Framework for capacity building

ISSB Chair, Emmanuel Faber takes to the main stage at COP27 finance day to share details of the ISSB’s new Partnership Framework with more than 20 partner organisations. The framework is designed to support preparers, investors and other capital market stakeholders as they prepare to use IFRS Sustainability Disclosure Standards.

The ISSB Partnership Framework for capacity building in developing and emerging economies seeks alignment on a shared vision that widespread availability of high quality, comparable and timely information is foundational to understanding the financial risks, opportunities, and impacts associated with climate and wider sustainability topics and achieving the 2030 Agenda. This represents an important facilitator for increasing private sector financial flows to the global south.

The main purpose of the Partnership Framework and important goal of the ISSB is to drive adoption of the globally implementable baseline that is truly inclusive in nature. Successful adoption of the baseline will:
• Enhance the assessment of sustainability-related risks and opportunities allowing capital to be more efficiently allocated, bolstering risk management and financial stability;
• Support the shift in capital allocation towards more sustainable investments and the global south;
• Have the potential to lower transaction costs and/or cost of capital for more sustainable business models.
• Provide consistent, comparable, decision-useful information on corporate performance across global markets; and
• Build trust and transparency needed to foster resilient capital markets, minimising greenwashing.
The Framework will identify opportunities for Partners to directly strengthen development of, leverage and unite expertise across a broad set of international stakeholders and improve coordination at the regional and international level to enable consistency of approaches.

The multi-year Partnership Framework is being developed to focus the attention of interested stakeholders across the world and serve as a catalyst for action, beyond COP27 for the next five years.

climate-related disclosure standards

Source: ISSB