Jurisdictions have made strides in implementing the International Sustainability Standards Board (ISSB) disclosure standards, aiming to enhance interoperability with other sustainability frameworks and develop global assurance and ethics standards. Most Financial Stability Board (FSB) jurisdictions have established regulations or guidelines for climate-related disclosures, aligning with ISSB Standards and Task Force on Climate-related Disclosures (TCFD) recommendations.
The FSB's 2024 progress report on "Achieving Consistent and Comparable Climate-Related Disclosures" highlights ongoing efforts to support jurisdictions in adopting these standards. Work is being done by the ISSB and other organizations to assist small- and medium-sized enterprises (SMEs) and companies in emerging market economies with implementation challenges. Significant progress has been noted in aligning ISSB Standards with regional frameworks and connecting them with financial reporting requirements.
Out of 24 FSB member jurisdictions, 19 have set up regulations or strategic roadmaps for climate-related disclosures. Seventeen have proposed voluntary or mandatory disclosure requirements based on ISSB standards. Additionally, some jurisdictions are moving towards introducing assurance requirements to improve the reliability of these disclosures.
The report also summarizes findings from the International Financial Reporting Standards (IFRS) Foundation’s Progress Report on Corporate Climate-related Disclosures, which notes encouraging progress but emphasizes the need for further advancement.
Addressing financial risks from climate change remains a key priority for the FSB. High-quality firm-level disclosures are crucial for managing these risks at both domestic and international levels. The FSB continues to monitor developments in climate-related financial disclosures through its progress reports, now overseen by the IFRS Foundation following a request in October 2023.
Input for this report was provided by member jurisdictions and standard-setting bodies such as the ISSB, International Organization of Securities Commissions (IOSCO), International Auditing and Assurance Standards Board (IAASB), among others.
The FSB plays a coordinating role at the international level among national financial authorities and standard-setting bodies, promoting effective regulatory policies for financial stability across 24 countries. It engages with approximately 70 other jurisdictions through its Regional Consultative Groups.
Klaas Knot chairs the FSB, headquartered in Basel, Switzerland under the Bank for International Settlements' hosting.