◉ PSYCHOHISTORY

IFRS Foundation

institutionMoney & Finance
A private accounting body was asked to watch how well companies report on climate, even though it cannot force anyone to follow its rules.
Who they are

The IFRS Foundation, which sets global accounting and sustainability reporting standards and hosts the International Sustainability Standards Board (ISSB)[1].

What they do

The Financial Stability Board asked the IFRS Foundation to take over monitoring how companies disclose climate-related information.

How it works

The IFRS Foundation created the ISSB to write sustainability reporting standards. It also published a comparison of its climate standard, IFRS S2, with the earlier TCFD recommendations. The Financial Stability Board, a group of regulators, asked the IFRS Foundation to track companies' progress on climate disclosures. The IFRS Foundation also signed a memorandum of understanding with the Taskforce on Nature-related Financial Disclosures to align their work. But the record does not show that the IFRS Foundation can enforce disclosure or that its templates are legally binding everywhere.

Why it matters

It shows how a private standard-setter can be handed a monitoring role by regulators, even without the power to make companies or countries comply.

The engine's record — word for word
The corpus records: "… in fact, to clarify, the Financial Stability Board has requested the IFRS Foundation take over the monitoring of progress …" Cross-sourced to fsb-tcfd.org, ifrs.org — documents cited by the corpus and retrieved independently of it.
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