The African Development Bank Group and the IFRS Foundation plan to work closely on advancing sustainability-related disclosure practices in Africa, a news release said, with support growing for the International Sustainability Standards Board (ISSB) standards. The IFRS Foundation and the Bank will collaborate to inform the development of training materials that are suitable for use in the African context.
“The two organisations signed a letter of intent on the sidelines of the Bank Group’s annual meetings, which are taking place in Nairobi,” the release said. The organisations plan to engage with African financial institutions, regulators, and policymakers to develop the knowledge and capabilities for effective sustainability disclosure, in compliance with ISSB standards, to support investor decision-making.
The Bank Group’s African Financial Alliance on Climate Change and the ISSB will lead on the partnership.
According to another ISSB news release, more than 20 jurisdictions, representing nearly 55% of global GDP, have decided to use or are taking steps to introduce ISSB standards in their legal or regulatory frameworks.
Jean-Paul Servais, board chair of the International Organization of Securities Commissions (IOSCO), called the growing support for ISSB standards “encouraging”.
“We recognise that this journey may be challenging, particularly for many emerging markets who will require the most assistance as they consider implementing sustainability reporting standards,” Servais said in a statement. “To build awareness and understanding, IOSCO has strengthened its collaboration with the ISSB and initiated a new partnership with the World Bank to assist jurisdictions as they consider their pathways to adoption.”
Nigeria and Kenya are among the jurisdictions that have signalled their intent to adopt or otherwise use the standards. Many other jurisdictions, including China, are seeking full alignment with or adoption of the standards, according to the IFRS Foundation.
The Ministry of Finance of the People’s Republic of China recently issued the exposure draft Chinese Sustainability Disclosure Standards for Business Enterprises — Basic Standard and Explanation of the Drafting. According to the IFRS Foundation, the draft formulates the unified China Sustainability Disclosure Standards based on ISSB standards, drawing on the beneficial experiences of ISSB standards, aligning with China’s context and showcasing Chinese characteristics.
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