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Amid concerns about greenwashing, regulators push for global sustainability standards

IOSCO sees support for mandatory global green reporting

James Langton The creation of an international standards-setter for sustainability disclosures is gaining momentum, according to the International Organization of Securities Commissions (IOSCO). Following roundtable discussions with global policymakers and industry (including asset managers and financial firms), the umbrella group of global securities regulators said there was strong support for its vision for an International Sustainability Standards Board (ISSB) to set standards for consistent, comparable reporting. The board would be created under global accounting standard-setter the IFRS Foundation. The globally aligned reporting standards would start with climate-related financial disclosure and expand to a wider range of sustainability issues. “Many participants stressed that voluntary disclosure would not be enough and hence supported clear pathways towards mandatory reporting requirements aligned across jurisdictions, along with robust frameworks for audit and assuranc

Accounting roundup: Full-scale IAS 19 review option; new IOSCO group

By Stephen Bouvier2021-04-07T13:48:00+01:00 The IFRS Foundation has launched its 2021 consultation on the shape of its future work programme, with one of the discussion points being a full-scale review of the International Accounting Standards Board’s pensions rule-book, International Accounting Standard 19, Employee Benefits (IAS 19). Hans Hoogervorst, chairman of the International Accounting Standards Board said: “The Agenda Consultation provides an important opportunity to help shape the Board’s priorities and the future of financial reporting.” He added that the board’s work programme over the next five years will focus in part on finalising its existing work agenda and carrying out post-implementation reviews of its financial instruments, revenue and leases accounting standards.

Global securities watchdog targets greenwashing

Global Securities Watchdog Targets Greenwashing in ESG Plan

Global Securities Watchdog Targets Greenwashing in ESG Plan Bloomberg 3/9/2021 Frances Schwartzkopff © Photographer: Chris Ratcliffe/Bloomberg Wind turbines operated by Vattenfall AB sit on a wind farm in Aggersund, Denmark. (Bloomberg) Global organizations that set corporate reporting standards failed to keep pace with the ESG boom, opening the door to greenwashing, mispricing and bubbles, according to one such group. Correcting the situation “will take some time,” said Erik Thedeen, chairman of the Sustainable Finance Task Force at the International Organization of Securities Commissions, whose members regulate more than 95% of the world’s securities markets. In the absence of global standards, an “alphabet soup of standards or semi-standards” has emerged that’s not “good enough,” Thedeen said by phone. “If we get reliable, comparable information with one set of standards, rather than different ones with different definitions, t

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