Global progress on sustainability standards, according to FSB

November 14th, 2024

The Financial Stability Board (FSB) has released its 2024 Achieving Consistent and Comparable Climate-related Disclosures report. 

The report gives insight into the progress global jurisdictions have made in implementing the International Sustainability Standards Board (ISSB) disclosure standards. 

It revealed 19 of the 24 FSB member jurisdictions now have regulations, strategic roadmaps, or guidelines tailored for climate-related disclosures. 

Additionally, 17 jurisdictions have introduced or are working towards disclosure requirements aligned with the ISSB standards and the Task Force on Climate-related Disclosures (TCFD) recommendations. 

Emmanuel Faber, Chair of ISSB, said that although a clear progress in disclosures is evident, the journey is far from finished.  

“This progress report underscores the significant and encouraging progress in disclosure of climate-related information,” Faber said. 

“But further action is needed to address the fact investors are still not receiving the information they need to assess and price appropriately climate and other sustainability-related risks and opportunities.”. 

The report also highlighted an area of concern.  

For instance, although 82% of global companies disclosed information aligned with at least one TCFD recommendation, less than 3% met all 11 recommendations. 

This suggests that investors’ ability to analyze climate opportunities and risks are hindered, due to a lack of information on topics including climate related-governance, strategy, risk management, and other metrics that remain undisclosed.  

“The introduction of sustainability-related disclosure requirements into regulatory frameworks through the adoption or other use of ISSB standards, building on the strong foundations laid through the TCFD recommendations and progressing towards a more comprehensive and assurable set of requirements, is of vital importance for the healthy functioning of capital markets around the world,” Faber added.  

Minerva’s blog focuses on the latest developments in ESG investing and stewardship. Minerva is a global provider of sustainable stewardship solutions with over 25 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data, enabling them to navigate the intricate landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.