IOSCO report on Transition Plans Disclosures
IOSCO report on Transition Plans Disclosures
The International Organization of Securities Commissions (IOSCO) has released a report on Transition Plans Disclosures, developed by its Sustainable Finance Taskforce (STF). The report highlights how these disclosures can enhance investor protection and market integrity. It identifies challenges and key findings, suggesting coordinated actions for IOSCO and other stakeholders. The report focuses on four main areas: ensuring consistency and comparability of transition plan disclosures, promoting their assurance, enhancing legal and regulatory clarity and oversight, and building capacity.
Stakeholders have suggested that guidance on transition plan disclosures could help clarify expectations on disclosures and lead to more standardised information. They believe that aligning guidance on these disclosures is crucial for investors to understand and compare information across different jurisdictions, despite varying national requirements. IOSCO's report supports the IFRS Foundation's plan to develop educational material and, if necessary, application guidance to aid in transition plan disclosures. IOSCO also encourages the International Sustainability Standards Board (ISSB) to ensure high interoperability of the IFRS Sustainability Disclosure Standards with key jurisdictional standards.
Additionally, IOSCO recommends that relevant standard setters provide markers for forward-looking information to help reporting entities manage potential liability risks while disclosing essential climate-related information.
The report is available here.
Stakeholders have suggested that guidance on transition plan disclosures could help clarify expectations on disclosures and lead to more standardised information. They believe that aligning guidance on these disclosures is crucial for investors to understand and compare information across different jurisdictions, despite varying national requirements. IOSCO's report supports the IFRS Foundation's plan to develop educational material and, if necessary, application guidance to aid in transition plan disclosures. IOSCO also encourages the International Sustainability Standards Board (ISSB) to ensure high interoperability of the IFRS Sustainability Disclosure Standards with key jurisdictional standards.
Additionally, IOSCO recommends that relevant standard setters provide markers for forward-looking information to help reporting entities manage potential liability risks while disclosing essential climate-related information.
The report is available here.