Montreal will serve as one of two host cities for the newly forged International Sustainability Standards Board (ISSB). The initiative, announced today at the UN Climate Change Conference in Glasgow, Scotland, is aligned with International Financial Reporting Standards (IFRS) and will develop global disclosure standards to provide investors and other players in capital markets with a consistent gauge of companies’ exposure to sustainability-related risks and opportunities.
The new ISSB will be jointly based in Montreal and Frankfurt, Germany, and similarly represents a consolidation of two leading investor-focused sustainability disclosure organizations: the Climate Disclosure Standards Board (CDSB) and the Value Reporting Foundation (VRF). The two entities have already developed an agenda and guidelines for the task ahead, as part of a technical readiness working group that also included input from the International Accounting Standards Board (IASB), the Task Force on Climate Related Financial Disclosures (TCFD, the World Economic Forum and the International Organization of Securities Commissions.
“This will provide people around the world with access to reliable information and strengthen accountability for companies and investors, in order to ensure an efficient global transition to a net-zero economy,” says Chrystia Freeland, Canada’s Deputy Prime Minister and Minister of Finance. “We are thrilled Canada will host one of the central offices for the ISSB and grateful to be recognized for our country’s diverse and strong talent, financial sector expertise and climate leadership.”
More than 140 jurisdictions globally mandate IFRS adherence for financial reporting. A coalition of Canadian public and private institutions, including financial sector players, professional associations, pension plans and provincial securities commissions, have pledged financial support for the ISSB’s start-up activities. The Canadian government is also providing $8 million.