The World Bank Group and the IFRS Foundation today announce their commitment to expand the coverage of their existing partnership to the adoption of sustainability standards in emerging markets and developing economies (EMDEs).
The commitment - announced during New York Climate Week - builds on the longstanding partnership between the World Bank Group and the IFRS Foundation that helped deliver the adoption of IFRS Accounting Standards in EMDEs globally.
The World Bank has also embarked on a multi-year roadmap aimed at aligning its climate and sustainability-related financial disclosures with the Standards of the International Sustainability Standard Board (ISSB), while considering the unique business models of the International Bank for Reconstruction and Development and the International Development Association.
World Bank Group President, Ajay Banga said:
"The World Bank Group supports global initiatives to establish harmonized and interoperable sustainability reporting standards that enhance existing financial reporting. The Bank's backing of the ISSB since its inception at COP26 highlights its commitment to the ISSB's vital role in developing a global framework for sustainability and climate-related financial disclosures."
The World Bank Group and the IFRS Foundation have committed to expand the coverage of their existing Memorandums of Understanding to support the adoption of ISSB Standards in emerging markets and developing economies, with due attention to proportionality.
The World Bank Group and the ISSB will continue to work in partnership with relevant public and private sector stakeholders, including on capacity building.
IFRS Foundation Managing Director Michel Madelain said:
"Already, a number of jurisdictions with developing economies around the world have signalled the intent to adopt ISSB Standards giving them an opportunity to unlock capital flows and establish transparency within value chains. The IFRS Foundation thanks the World Bank Group for its continued partnership around IFRS Accounting Standards and for its commitment to support the adoption of ISSB Standards in these economies."
"Furthermore, we applaud the World Bank's leadership in aligning to the ISSB Standards for its own reporting, sending an important signal to capital market participants worldwide about their value for disclosing sustainability-related information."
