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dc.titleSustainability and Climate Change-related Risk Disclosure in Latin America and the Caribbean: Toward Transparency in Green Financial Markets
dc.contributor.authorHerrera, Diego
dc.contributor.authorPradilla, Andrea
dc.contributor.authorRubio, Estefanía
dc.contributor.authorSarmiento, Jaime
dc.contributor.orgunitConnectivity, Markets and Finance Division
dc.contributor.orgunitInstitutions for Development Sector
dc.coverageLatin America
dc.coverageThe Caribbean
dc.date.available2023-10-06T07:10:00
dc.date.issue2023-10-05T00:10:00
dc.description.abstractThis paper analyzes the importance of adopting standards for reporting information that relates to sustainability and climate change-related risks in the financial markets. The sustainability rules of the International Financial Reporting Standards (IFRS) FoundationS1 (General requirements for disclosure of sustainability-related information) and S2 (Climate-related disclosures) issued by the International Sustainability Standards Board (ISSB), highlight the need for the standardization, comparability, measurement, and reliability of information when disclosing such risks. However, their implementation poses challenges for public policymakers in Latin America and the Caribbean (LAC). In addition to the new standard, it reviews voluntary standards, such as those of the Global Reporting Initiative (GRI), an entity that collaborated in writing this paper. It analyzes information from surveys carried out among issuers of securities, institutional investors, market infrastructures and financial regulators and supervisors in order to evaluate the state of disclosure in the region. Finally, the paper advances some public policy recommendations, which include improving institutional capacity from at least three perspectives: developing areas dedicated to sustainability and climate-related risks, improving talent in these areas, and technology. This publication seeks to support LAC countries in their transition toward adopting information reporting standards for sustainability and its associated risks, including climate change, which would enable the region to be more assertive in its financial instrument risk assessment. It is hoped that market growth can gradually be encouraged toward development that is sustainable, measurable, comparable, auditable, and valuable for all actors in the LAC capital markets.
dc.format.extent97
dc.identifier.doihttp://dx.doi.org/10.18235/0005191
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Sustainability-and-Climate-Change-related-Risk-Disclosure-in-Latin-America-and-the-Caribbean-Toward-Transparency-in-Green-Financial-Markets.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Divulgacion-disclosure-de-sostenibilidad-y-riesgos-relacionados-con-el-cambio-climatico-en-America-Latina-y-el-Caribe--hacia-la-transparencia-en-los-mercados-financieros-verdes.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectSustainability
dc.subjectSustainable Investment
dc.subjectQuality Management
dc.subjectRegulation
dc.subjectFinancial Market
dc.subjectSmall Business
dc.subjectClimate Change
dc.subjectInformation and Communication Technology
dc.subjectStock Exchange
dc.subjectClimate Risk
dc.subjectGreenhouse Gas Emission
dc.subjectCapital Market
dc.subjectRisk Management
dc.subject.jelcodeM41 - Accounting
dc.subject.jelcodeM48 - Government Policy and Regulation
dc.subject.jelcodeQ51 - Valuation of Environmental Effects
dc.subject.jelcodeQ54 - Climate • Natural Disasters and Their Management • Global Warming
dc.subject.jelcodeQ55 - Technological Innovation
dc.subject.jelcodeQ56 - Environment and Development • Environment and Trade • Sustainability • Environmental Accounts and Accounting • Environmental Equity • Population Growth
dc.subject.jelcodeQ58 - Government Policy
dc.subject.keywordsclimate risk;disclosure;Global Reporting Initiative (GRI);International Financial Reporting Standards (IFRS);International Sustainability Standards Board (ISSB);transition;stock market;Sustainability
dc.typeMonographs
idb.identifier.pubnumberIDB-MG-01145
idb.operationRG-T3967
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