The Jurisdictional Working Group of the International Sustainability Standards Board was expanded recently to enhance the disclosure standards’ function as a “global passport” for sustainability reporting. The news was made during the London-based IFRS Sustainability Symposium, which attracted attendees from over 45 jurisdictions.

ISSB Chair Emmanuel Faber stated in his keynote speech that the action will align sustainability reporting internationally and encourage tighter communication among regulators.

“It is evident that fragmentation must be avoided as jurisdictions implement sustainability-related disclosure requirements,” Faber stated. “The new guide and our enlarged working group offer resources to assist jurisdictions in using ISSB Standards as the global passport.” While taking jurisdiction-specific criteria into account, the passporting provisions will enable countries to accept sustainability reports created in accordance with ISSB Standards.

The goal of this strategy is to reduce preparation expenses and the frictions that can impede the flow of information in capital markets. According to the ISSB, the framework will assist in guaranteeing efficiency and comparability for businesses and investors globally.

It further stated that the adoption of a unified sustainability reporting system will provide more transparent cross-border communication of sustainability performance. With over 40 jurisdictions aiming to adopt or align with ISSB Standards, the recently enlarged Jurisdictional Adopters Working Group demonstrates growing interest in these standards. The committee will give legislators a formal forum to discuss passporting procedures and plan implementation. The ISSB also released a Jurisdictional Rationale Guide and related tool in conjunction with the announcement.

These resources describe the reasons for adoption and show how nations might improve the efficiency and openness of their financial markets. Drawing on the experiences of early adopters, the handbook points out that the ISSB Standards enhance cost-effectiveness for businesses while assisting investors in making well-informed capital-allocation decisions. Faber stressed that ISSB Standards are becoming more and more popular as the global standard for sustainability reporting disclosures, and they currently cover roughly 40% of the world’s capital markets.

He declared, “We are dedicated to optimising the advantages that ISSB Standards provide.” “The new guide and the growth of our working group address the need for forums, tools, and resources to help jurisdictions effectively use the Standards as the global passport.”