IOSCO endorses ISSB sustainability standards, urges 130 jurisdictions to adopt

The International Organization of Securities Commissions endorsed the ISSB's IFRS S1 and IFRS S2 standards, calling on its 130 member jurisdictions to consider incorporating them into regulatory frameworks. The endorsement strengthens the global baseline that India's SEBI and BRSR-reporting companies will increasingly need to align disclosures with.

IOSCO officially endorsed the International Sustainability Standards Board's standards after a comprehensive review, calling on its 130 member jurisdictions, which regulate over 95% of the world's securities markets, to consider incorporating ISSB Standards into their frameworks. The ISSB, established in November 2021, aims to provide a global baseline for sustainability-related disclosure for capital markets. The endorsement confirms the standards are suitable for capital-market use and supports pricing of sustainability-related risks and opportunities.

The endorsement affects securities regulators, listed companies, and investors worldwide, with particular importance for growth and emerging markets that constitute 75% of IOSCO's membership. It comes as jurisdictions consider adopting the first two standards, IFRS S1 and IFRS S2, with some weighing mandatory application. The IFRS Foundation published a high-level roadmap on its adoption strategy, acting as a precursor to an Adoption Guide for regulators expected to be finalised later in 2023.

Companies and regulators should monitor jurisdictional adoption decisions and prepare for alignment with IFRS S1 and IFRS S2 as comparability becomes the expectation across capital markets. ISSB Chair Emmanuel Faber pledged an inclusive capacity-building program, while IFRS Foundation Trustees Chair Erkki Liikanen stressed reducing fragmentation. Indian companies reporting under BRSR should track how the global baseline shapes future disclosure expectations and prepare data systems for consistent, comparable sustainability reporting.

Key figure — Reach: 130 IOSCO member jurisdictions regulating over 95% of securities markets