The International Finance Corporation (IFC) and the IFRS Foundation have entered into a strategic partnership to strengthen sustainable capital markets by enhancing sustainability and climate reporting in emerging markets and developing economies (EMDEs). Announced during London Climate Action Week, this collaboration represents a significant step towards standardized and transparent reporting practices.
“Today marks a pivotal moment as we join forces with the IFRS Foundation to advance sustainability and climate reporting,” said Martine Valcin, IFC’s Global Manager for Corporate Governance and ESG Advisory, Knowledge, and Learning. “Our combined efforts aim to drive meaningful progress in standardizing and increasing transparency, ensuring that EMDEs are not left behind in the global transition towards sustainable finance.”
In June 2023, the IFRS Foundation’s International Sustainability Standards Board (ISSB) released two Standards designed to deliver global consistency and comparability in sustainability-related financial disclosures. Jurisdictions representing approximately 55% of global GDP have already begun adopting these Standards.
The partnership will focus on promoting and building capacity for the consistent application of the IFRS Sustainability Disclosure Standards in EMDEs. Key initiatives include developing toolkits, publishing research, and offering training to encourage comprehensive sustainability reporting. Additionally, the collaboration will provide technical assistance and tailored support to facilitate effective adoption of these Standards, leveraging IFC’s ongoing efforts in Bangladesh and Jordan.
“We are proud to collaborate with IFC, combining our commitment to high-quality sustainability and climate-related financial reporting with their deep market insights and global reach,” stated Jingdong Hua, Vice-Chair of the ISSB. “This partnership will amplify our impact, improving the quality of sustainability and climate-related financial reporting globally, especially in emerging markets and developing economies. It plays a crucial role in bringing structured, reliable sustainability information to the forefront of global markets, thereby facilitating sustainable investments.”
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