IOSCO publishes report on Transition Plans

The International Organization of Securities Commissions (IOSCO) published a report on transition plan disclosures on 13 November 2023.

The Report sets out how transition plans disclosures can support the objectives of investor protection and market integrity, shares challenges and 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:

1. Where transition plans are published, encouraging consistency and comparability through guidance on transition plan disclosures,
2. promoting assurance of transition plan disclosures;
3. enhancing legal and regulatory clarity and oversight, and
4. building capacity.

The report explicitly welcomes the work of the IFRS Foundation to consolidate the various standards and frameworks for reporting on transition plans and to provide educational material for corresponding disclosures. The ISSB is encouraged to achieve a high level of interoperability, particularly with the ESRS.

The ESRS already contain corresponding reporting requirements, in particular in ESRS E1-1, paragraph 16. EFRAG is also currently working on implementation guidance of these disclosure requirements. The Platform for Sustainable Finance is also currently working on guidance and information material relating to transition plans. The ASCG reported here on the first draft of EFRAG Implementation Guidance and the platform’s planned report.