WASHINGTON, CMC—The Inter-American Growth Financial institution (IDB), IDB Make investments, and the IFRS Basis formally partnered on Wednesday to advertise the adoption and implementation of the IFRS Sustainability Disclosure Requirements throughout Latin America and the Caribbean (LAC).
They stated the settlement goals to speed up the adoption of those requirements within the area’s nations and information the non-public sector within the implementation course of. It launches an motion plan with instruments that embody data sharing, capability constructing, and coverage engagement.
The IFRS Sustainability Disclosure Requirements, developed by the Worldwide Sustainability Requirements Board (ISSB), present a world baseline for the disclosure of sustainability-related dangers and alternatives for capital markets, specializing in investor wants.
“The IFRS requirements assist issuers, buyers, and regulators make knowledgeable choices and align incentives. Transparency builds belief. This partnership is about accelerating the adoption course of throughout the area and serving to implement it,” stated IDB President Ilan Goldfajn.
IFRS Basis managing director Michel Madelain stated public authorities throughout Latin America and the Caribbean have signaled their perception that IFRS Sustainability Disclosure Requirements might help strengthen capital markets, enhancing transparency and understanding of sustainability-related dangers and alternatives.
“Our partnership with the Inter-American Growth Financial institution Group will ship to those markets crucial assist to profit from the total potential of efficient sustainability-related disclosure within the area,” he stated.
The IDB stated that the partnership, formalized by way of a Memorandum of Understanding (MoU), comes at a pivotal second of rising momentum round adopting the IFRS Sustainability Disclosure Requirements in Latin America and the Caribbean.
It focuses on three areas, particularly data sharing by creating a coverage paper on the advantages of adoption, piloting a self-assessment device for personal banks, and producing a regional case examine in addition to capability constructing that supporters regulators by way of the IDB and personal establishments by way of IDB Make investments to strengthen sustainability and climate-related threat disclosures.
The MoU additionally permits for advocacy and coverage engagement, offering focused technical help and coverage dialogue to assist nations undertake and implement the IFRS Sustainability Disclosure Requirements.
“By way of this collaboration, the IDB, IDB Make investments, and the IFRS Basis will work with private and non-private stakeholders to construct capability, handle native wants, and promote regulatory alignment. The IDB can also be aligning its disclosures with IFRS Requirements by way of a multi-year roadmap,” the IDB added.
