A recent report from the Financial Stability Board (FSB) reveals that 80% of global financial regulators are now aligned with the International Sustainability Standards Board (ISSB) and Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Specifically, 19 out of 24 FSB member jurisdictions have implemented climate-related disclosure regulations or guidelines influenced by these frameworks, while 17 jurisdictions have developed or proposed requirements consistent with ISSB standards.
Despite this progress, only 82% of global companies reported information in line with at least one TCFD recommendation, with fewer than 3% fulfilling all 11 recommendations. This indicates significant gaps in disclosing essential climate-related governance and risk management information, hampering investor assessments.
The FSB calls for continued support to assist small and medium-sized enterprises (SMEs) and emerging market companies in adopting these standards. Assurance requirements are also being integrated in various jurisdictions to enhance the credibility of climate-related disclosures. Overall, while advancements in aligning sustainability and financial reporting frameworks are clear, further efforts are essential for effective implementation.
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