Momentum builds globally for climate-related reporting at COP28

Close to 400 organisations from 64 jurisdictions have declared their support and committed to advancing the adoption or use of the International Sustainability Standards Board’s (ISSB’s) climate-related reporting at a global level, as announced during Finance Day at the United Nation’s 2023 climate conference, COP28.

There has been a groundswell of support from companies, investors, stock exchanges, the accounting profession, NGOs, universities, data analytics providers and corporate advisers following the issue in June 2023 of the ISSB’s Sustainability Disclosure Standards, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. In addition, the International Organization of Securities Commissions (IOSCO) endorsed the ISSB standards earlier in the year.

The COP28 declaration of support has been signed by corporate membership groups representing thousands of companies around the world, investor membership groups with assets under management exceeding $120 trillion, and 70 institutional investors who signed individually.

More than 25 five stock exchanges have also declared their support, including the Australian Securities Exchange. So has the African Securities Exchanges Association which represents 27 securities exchanges, and the Arab Federation of Capital Markets which represents 17 stock exchanges. 40 professional accounting organisations and audit firms globally, including BDO, have also pledged their support, as has Chartered Accountants Australia and New Zealand (CAANZ).

Regulators and standard setters from ASEAN, Brazil, Brunei, Canada, the European Union, Germany, Ghana, Hong Kong, Japan, Kenya, Mauritius, Mexico, Myanmar, Nigeria, the Philippines, Singapore, Turkey, the United Kingdom, Uruguay and Vietnam have also declared their support and are considering how they can incorporate the ISSB Standards into their regulatory frameworks.

There is nowhere to hide

With momentum building globally for sustainability-related financial disclosures, Australia is expected to follow suit. Treasury’s second Consultation Paper outlines proposed timelines for Australian entities to adopt climate reporting, ranging from 2025 for large entities to 2028 for smaller entities, with the Australian Accounting Standards Board currently considering ways to adopt IFRS S1 and S2 in Australia.

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