The International Organization of Securities Commissions has published a report on transition plan disclosures. The report sets out how transition plan disclosures can support the objectives of investor protection and market integrity, and shares challenges. The report also discusses key findings, which point towards a series of coordinated actions for IOSCO and other stakeholders to consider in the future, which concern four main aspects: (i) where transition plans are published, encouraging consistency and comparability through guidance on transition plan disclosures; (ii) promoting assurance of transition plan disclosures; (iii) enhancing legal and regulatory clarity and oversight; and (iv) building capacity.
IOSCO's report welcomes the International Financial Reporting Standards Foundation's plan to develop educational material on transition plan disclosures and, if needed, application guidance to support transition plans disclosures that provide investors with the information needed to make informed decisions about risks and opportunities. IOSCO encourages the International Sustainability Standards Board to maintain a high level of interoperability of the International Financial Reporting Standards Sustainability Disclosure Standards with key jurisdictional standards as they develop this educational material. To enhance clarity, IOSCO also encourages relevant standard setters to consider providing markers on what would constitute forward-looking information, in accordance with their standards and governance processes. This can support reporting entities in managing potential liability risks while disclosing much needed forward-looking, climate-related, information.
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