Accelerating Sustainability Disclosures in the Caribbean: Unveiling the New IDB Partnership
The Inter-American Development Bank (IDB), in collaboration with IDB Invest and the IFRS Foundation, has initiated a strategic partnership aimed at enhancing the adoption of the IFRS Sustainability Disclosure Standards throughout Latin America and the Caribbean. This vital collaboration aims to accelerate the implementation of the International Sustainability Standards Board’s (ISSB) framework, which establishes a global benchmark for sustainability-related disclosures.
Objectives of the Partnership
Announced via a Memorandum of Understanding, the partnership seeks to:
- Facilitate the adoption of IFRS Sustainability Disclosure Standards across public and private institutions.
- Implement a structured action plan focused on knowledge sharing, capacity building, and policy engagement.
- Respond to the increasing demand for consistent and transparent ESG disclosures in the region.
Key Focus Areas
The partnership will concentrate on three primary areas:
- Knowledge Sharing:
- Development of a policy paper outlining the benefits of adopting IFRS standards.
- Implementation of a self-assessment tool for private banks.
- Creation of a regional case study.
- Capacity Building:
This initiative will enhance the skills of regulators and private institutions to improve sustainability and climate risk disclosures.
- Advocacy and Policy Engagement:
Tailored technical assistance will be provided, along with hosting policy discussions to steer implementation efforts across the region.
Statements from Leadership
IDB President Ilan Goldfajn emphasized the importance of this partnership, stating, “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 helping in its implementation.”
Michel Madelain, managing director of the IFRS Foundation, added, “Public authorities across Latin America and the Caribbean have signaled their belief that IFRS Sustainability Disclosure Standards can help strengthen capital markets, enhancing transparency and understanding around sustainability-related risks and opportunities.”
Commitment to Internal Alignment
In addition to supporting external stakeholders, the IDB is committed to aligning its own sustainability disclosures with IFRS standards. This includes developing a multi-year roadmap to guide its internal transition towards effective sustainability reporting.
This regional initiative aligns with the growing global trend of adopting IFRS standards as the benchmark for consistent and investor-focused sustainability disclosures.
For further information on sustainability practices, visit the United Nations Climate Change page.
