The World Bank Group and the IFRS Foundation have announced their commitment to expand their partnership towards adopting sustainability standards in emerging markets and developing economies (EMDEs). This announcement was made during New York Climate Week.
This new commitment builds on the existing collaboration between the World Bank Group and the IFRS Foundation, which has previously facilitated the adoption of IFRS Accounting Standards in EMDEs globally. The World Bank is also working on a multi-year roadmap to align its climate and sustainability-related financial disclosures with the Standards of the International Sustainability Standard Board (ISSB), while considering its unique business models.
World Bank Group President Ajay Banga stated, "The World Bank Group supports global initiatives to establish harmonized and interoperable sustainability reporting standards that enhance existing financial reporting. The Bank’s backing of the ISSB since its inception at COP26 highlights its commitment to the ISSB’s vital role in developing a global framework for sustainability and climate-related financial disclosures."
Both organizations have committed to expanding their Memorandums of Understanding to support ISSB Standards' adoption in EMDEs, with attention to proportionality. They will continue collaborating with relevant public and private sector stakeholders, including on capacity building.
IFRS Foundation Managing Director Michel Madelain remarked, "Already, a number of jurisdictions with developing economies around the world have signalled the intent to adopt ISSB Standards giving them an opportunity to unlock capital flows and establish transparency within value chains. The IFRS Foundation thanks the World Bank Group for its continued partnership around IFRS Accounting Standards and for its commitment to support the adoption of ISSB Standards in these economies."
Madelain added, "Furthermore, we applaud the World Bank’s leadership in aligning to the ISSB Standards for its own reporting, sending an important signal to capital market participants worldwide about their value for disclosing sustainability-related information."
For further information:
In Washington: Melissa Bryant,+1 202 473 1089, mbryant@worldbankgroup.org