The Growth and Emerging Markets Committee of IOSCO offered recommendations to assist regulators on issues concerning sustainable finance.
In a consultation report, IOSCO offered the following recommendations, among others:
- integrate environmental, social and governance ("ESG") specific issues into "overall risk appetite and governance";
- ensure sufficient data quality for ESG-specific reporting;
- define "sustainable instruments" clearly;
- use funds raised through sustainable instruments for projects falling under one or a combination of ESG categories and subcategories;
- establish offering document requirements for sustainable instruments;
- institute ongoing disclosure requirements regarding the use of funds raised through the issuance of sustainable instruments; and
- provide measures to "prevent, detect and sanction the misuse of the funds raised through the issuance of sustainable instruments."
Comments on the recommendations must be submitted by April 1, 2019.
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