The IFRS Foundation, in collaboration with the Inter-American Development Bank (IDB) and IDB Invest, has announced a landmark strategic partnership to promote the widespread adoption and implementation of the IFRS Sustainability Disclosure Standards across Latin America and the Caribbean.
This regional initiative is designed to accelerate the integration of globally recognized sustainability reporting frameworks into public and private markets. The partnership features an action plan that includes knowledge sharing, capacity building, and policy engagement—providing targeted tools to equip businesses and regulators with the expertise required to align sustainability disclosures with international expectations.
“The IFRS standards help issuers, investors and regulators make informed decisions and align incentives. Transparency builds trust,” said Ilan Goldfajn, President of the IDB. “This partnership is about accelerating the adoption process across the region and helping implement it effectively.”
Driving Market Confidence Through Transparency
The IFRS Sustainability Disclosure Standards, developed by the International Sustainability Standards Board (ISSB), serve as a global baseline for reporting sustainability-related financial information. By standardizing disclosures on environmental, social, and governance (ESG) risks and opportunities, the standards aim to strengthen the flow of consistent, decision-useful data to capital markets.
The initiative is a direct response to increasing demand from institutional investors and global stakeholders for high-quality, comparable ESG information—particularly in emerging markets where the transition to sustainable finance is gaining momentum.
Building Capacity for the Future
The collaboration is poised to benefit a wide range of stakeholders, from regulators and policymakers to corporate issuers and investors. It aims to:
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Promote region-wide adoption of IFRS Sustainability Standards
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Deliver technical assistance and capacity-building programs
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Facilitate regional dialogues on sustainable finance policy and implementation
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Support market infrastructure readiness for enhanced ESG reporting
This joint effort reflects a shared commitment to financial stability, investor confidence, and sustainable economic development. By harmonizing disclosure practices across borders, the partnership will help Latin American and Caribbean markets integrate more fully into the global sustainable finance ecosystem.
As climate change, biodiversity loss, and social inequalities reshape investment priorities, this regional push for standardized sustainability reporting represents a crucial step in bridging the gap between capital and climate-smart, resilient growth.
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