The world’s financial markets are getting a green upgrade! The IFRS Foundation reports that 36 jurisdictions, from Australia to Zambia, are adopting or aligning with the International Sustainability Standards Board (ISSB) Standards, aiming to make sustainability reporting clear and consistent for investors. With 17 detailed profiles showing 14 jurisdictions fully embracing the standards, this $75 trillion market push could reshape how 100,000 companies disclose climate and sustainability risks. But with partial adoptions and regulatory gaps, will this global baseline deliver, or fall short in a world craving $4 trillion yearly for net-zero?

What’s Happening?

The ISSB, launched in 2021 at COP26, is setting a global standard for sustainability disclosures with IFRS S1 (general sustainability risks) and S2 (climate-specific metrics). As of June 2025, 36 jurisdictions—covering 55% of global GDP—are on board, with 17 finalizing their plans. Fourteen, including Brazil and Malaysia, aim for full adoption, while Hong Kong and Nigeria focus on climate rules, and one partially incorporates the standards. Sixteen more, like Canada and Japan, are drafting plans, with 12 eyeing full alignment.

“This clarity helps investors navigate risks in a changing world,” says ISSB Chair Emmanuel Faber.

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Why It’s a Big Deal?

Investors managing $200 trillion in assets want reliable data to price climate risks—ISSB delivers. These standards, backed by G7, G20, and IOSCO, streamline reporting for 50,000 listed firms, cutting costs by 20% versus fragmented frameworks. Jurisdictions like Mexico and Türkiye, with $15 trillion in market cap, gain capital access—Brazil’s firms alone attracted $5 billion in green bonds in 2024.

The Game Plan

• Full Adoption (14): Australia, Brazil, Malaysia, and others align fully with S1 and S2, mandating governance, strategy, and emissions reporting by 2026.

• Climate-Focused (2): Hong Kong and Nigeria prioritize S2’s GHG metrics, like Scope 3 emissions, starting 2025.

• Partial Use (1): One jurisdiction cherry-picks ISSB elements, risking inconsistency.

• Snapshots (16): Canada, Japan, and 14 others draft rules, with Japan’s SSBJ targeting 2027 reporting and Canada’s CSSB eyeing 2026.

The IFRS Foundation’s 17 profiles, plus 16 snapshots, map each jurisdiction’s progress, ensuring transparency for 1 million investors.

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Where It Gets Tricky?

Not all’s rosy. Partial adoptions, like Nigeria’s climate-only focus, could fragment data for 30% of global investors. Smaller firms in Zambia or Pakistan face $100,000 compliance costs, per KPMG, with 40% lacking capacity. The U.S., a $50 trillion market, lags—SEC rules don’t recognize ISSB, and states like California drive patchwork laws.

What’s Next?

By 2026, 20 jurisdictions, including Singapore and Mexico, start mandatory reporting, covering 10,000 firms. ISSB’s tweaking SASB standards for oil, mining, and food sectors, with drafts due mid-2025. A $10 million IFRS tool helps regulators like Pakistan phase in rules by 2027.

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