Key Impact Points:
- New strategic partnership promotes IFRS Sustainability Disclosure Standards in Latin America and the Caribbean.
- Action plan focuses on knowledge sharing, capacity building, and policy engagement.
- IDB to align its own disclosures with IFRS standards through a multi-year roadmap.
Strategic Partnership to Boost Sustainability Transparency
The Inter-American Development Bank (IDB), IDB Invest, and the IFRS Foundation have signed a Memorandum of Understanding to accelerate the adoption of the IFRS Sustainability Disclosure Standards in Latin America and the Caribbean.
These globally recognized standards, developed by the International Sustainability Standards Board (ISSB), serve as a baseline for disclosing sustainability-related risks and opportunities relevant to capital markets.
Supporting Public and Private Sector Implementation
The agreement launches a comprehensive action plan focused on:
- Knowledge Sharing: A regional policy paper, a private bank self-assessment tool, and case studies.
- Capacity Building: Strengthening climate-related disclosure practices among regulators and private institutions.
- Policy Engagement: Technical assistance and dialogue to support national adoption efforts.
High-Level Endorsements
IDB President Ilan Goldfajn emphasized the role of transparency in market development:
“The IFRS standards help issuers, investors and regulators make informed decisions and align incentives. Transparency builds trust. This partnership is about accelerating the adoption process across the region and help in its implementation.”
Michel Madelain, Managing Director at the IFRS Foundation, added:
“Public authorities across Latin America and the Caribbean have signalled their belief that IFRS Sustainability Disclosure Standards can help strengthen capital markets, enhancing transparency and understanding around sustainability-related risks and opportunities. Our partnership with the Inter-American Development Bank Group, will deliver to these markets critical support to benefit from the full potential of effective sustainability-related disclosure in the region.”
IDB to Lead by Example
The IDB has also committed to aligning its own sustainability disclosures with the IFRS standards via a multi-year implementation roadmap. This move aims to strengthen regional leadership and trust in capital markets by setting a public sector example.
Related Article: UNDP, GRI, IFRS, ISO Partner to Establish Sustainability Disclosure and Management Hubs Across Developing Economies
