On 18th January 2019, a Statement of Disclosure of ESG Matters by Issuers was issued by The International Organization of Securities Commissions (IOSCO), an international body that brings together the world’s securities regulators. The statement recognized the materiality, and short and long term impact of Environmental, Social and Governance (ESG) information for investors.
Within financial markets, regulation protects investors, ensures fair and efficient markets, and reduces systemic risk. To achieve this, there needs to be “full, accurate, and timely disclosure of financial results, risks, and other information which is material to investors’ decisions”, stated IOSCO in Principle 16 of the Principles of Securities Regulation. When ESG matters are considered to be material, issuers should disclose the impact or potential impact on their financial performance and value creation.
As responsible investment is growing with coordinated effort from regulators and policy makers, this recognition statement of ESG materiality by the IOSCO is definitely a welcomed release, facilitating the mainstream use of ESG data.
Source: https://www.globalreporting.org/information/news-and-press-center/Pages/iosco-esg-matters-2019.aspx
