IOSCO Offers Recommendations to Emerging Market Regulators on Sustainable Finance

The Growth and Emerging Markets Committee of IOSCO offered recommendations to assist regulators on issues concerning sustainable finance.

In a consultation report, IOSCO offered the following recommendations, among others:

• integrate environmental, social and governance ("ESG") specific issues into "overall risk appetite and governance";
• ensure sufficient data quality for ESG-specific reporting;
• define "sustainable instruments" clearly;
• use funds raised through sustainable instruments for projects falling under one or a combination of ESG categories and subcategories;
• establish offering document requirements for sustainable instruments;
• institute ongoing disclosure requirements regarding the use of funds raised through the issuance of sustainable instruments; and
• provide measures to "prevent, detect and sanction the misuse of the funds raised through the issuance of sustainable instruments."

Comments on the recommendations must be submitted by April 1, 2019.