14 March 2022

IOSCO’s 2022 Sustainable Finance work plan strengthens the organization’s commitment to increasing transparency and mitigating greenwashing

"Our work plan for 2022 is very ambitious but it is of utmost importance that the regulatory community steps up its efforts in ensuring markets contribute positively to sustainability challenges, in a way that secures the integrity of financial markets and the protection of investors.”

The International Organization of Securities Commissions (IOSCO) has adopted a far-reaching 2022
work plan to develop sustainable finance.

Ashley Alder, IOSCO Chair and head of the Hong Kong securities regulator, said “Our work plan for
2022 is very ambitious but it is of utmost importance that the regulatory community steps up its efforts
in ensuring markets contribute positively to sustainability challenges, in a way that secures the
integrity of financial markets and the protection of investors.”

At its meeting on 9 March, the Board stressed the importance of mitigating greenwashing and doing
what is necessary to create reliable information on sustainability impacts for investors.
IOSCO is planning a timely and thorough review of the soon-to-be-published IFRS International
Sustainability Standards Board (ISSB) Exposure Drafts of proposed climate and general sustainability
disclosure requirements, as well as the final standards when they are produced. If IOSCO determines
that the IFRS Sustainability Standards are fit for purpose, its decision would provide all 140 IOSCO
member jurisdictions with the basis to decide how they might adopt, apply or be informed by the ISSB
standards.

In parallel, IOSCO will also push forward work to develop assurance standards. IOSCO has identified
independent assurance of the quality of corporate reporting of sustainability information as a key
element of building trust in sustainability reporting.

IOSCO has also committed to an in-depth review of carbon markets to identify the vulnerabilities in
nascent voluntary carbon markets, as well as the transparency and integrity in the functioning of
carbon markets from the perspective of financial regulation.

In addition, IOSCO will also step up its engagement with both national regulators and market
participants to push for the implementation of its recommendations addressed to asset management
and ESG ratings and data providers. Rodrigo Buenaventura, head of the Spanish regulator and one of
the leaders of this part of IOSCO’s workplan, said “IOSCO has explained very clearly to market
participants how green-washing can be avoided. We need everyone in the securities sector to work
with us now to promote good practices and call out greenwashing. Building trust through high
standards of behavior is critical so that investment products described as sustainable actually are.”
Erik Thedéen, Chair of IOSCO’s Sustainable Finance Task Force and head of the Swedish regulator
said: “IOSCO has an immense set of tasks ahead of itself in 2022. Our work on endorsing the ISSB
standards is part of a wider push by IOSCO to professionalize all aspects of sustainable finance. The
Task Force IOSCO has asked me to lead will work intensively in 2022 to deliver across a range of
key issues which have to be worked out if markets are to gear up to supporting investors’ desire to
invest in ESG.”

IOSCO

© IOSCO