Climate protection is also becoming an increasingly important topic in the financial sector. But there are no global standards for sustainability reporting. Frankfurt will play an important role in this in the future.
Frankfurt will be the main location for a planned international body to set global standards for climate-related financial reporting. This was announced by the International Financial Reporting Standards (IFRS) foundation at the climate summit in Glasgow.
Accordingly, the leadership of the body will be based in Frankfurt, while further key functions will be established in Montreal, Canada. Offices in San Francisco and London are also planned, as well as another location in Asia. The new body should start work in early 2022, it said.
Topics such as climate and environmental protection are becoming more and more important in the financial sector. However, there is no uniform definition of what exactly is “sustainable”. There is a lack of globally applicable criteria, for example for “green investments”. The International Sustainability Standard Board (ISSB) is to develop international standards for sustainability reporting by companies under the umbrella of the IFRS Foundation. The IFRS Foundation is a not-for-profit private organization that was founded with the aim of developing understandable and globally recognized accounting standards.
Tough competition
The competition for the body was fierce: Canada and Japan had also offered to host the ISSB, while Switzerland had sent Geneva into the race. The new organization could have around 80 employees, spread over several locations. The federal government, the state of Hesse, important associations, companies and organizations such as the European Central Bank supported Frankfurt’s application.
Federal Finance Minister Olaf Scholz (SPD) welcomed the decision. “The world climate summit just shows us once again that climate protection is the greatest global challenge of our time,” he said in a message from the Frankfurt Main Finance initiative. Directing money into sustainable financial products and climate-friendly investments is an essential building block for successful climate protection. “With this major task, Frankfurt is now finally becoming a global player.”
The banking association was also pleased. “The decision is a great success for the Frankfurt financial center,” announced President Christian Sewing. Internationally coordinated sustainability reporting is of central importance for global banks and companies.
Source From: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
