The Inter-American Development Bank (IDB), its private sector arm IDB Invest, and the IFRS Foundation have entered into a strategic partnership to accelerate the adoption and implementation of the IFRS Sustainability Disclosure Standards across Latin America and the Caribbean.
Formalised through a Memorandum of Understanding, the partnership aims to support countries in the region and guide the private sector through the implementation of sustainability-related reporting. The initiative introduces a comprehensive action plan that includes knowledge sharing, capacity building, and policy engagement.
The IFRS Sustainability Disclosure Standards, developed by the International Sustainability Standards Board (ISSB), offer a global baseline for the disclosure of sustainability-related risks and opportunities, with a strong emphasis on the information needs of investors and capital markets.
IDB President Ilan Goldfajn said: “These standards help issuers, investors and regulators make more informed decisions and align incentives. Transparency builds trust. This partnership is about accelerating adoption across the region and supporting effective implementation.”
Michel Madelain, Managing Director of the IFRS Foundation, added: “Authorities throughout Latin America and the Caribbean have recognised the value of IFRS Sustainability Disclosure Standards in strengthening capital markets and improving understanding of sustainability-related risks. Our collaboration with the IDB Group aims to provide critical support that will allow these markets to fully benefit from robust disclosure practices.”
The partnership is structured around three strategic pillars:
- Knowledge Sharing: Development of a policy paper outlining the benefits of adoption, a pilot self-assessment tool for private banks, and the publication of a regional case study.
- Capacity Building: Assistance for regulators via the IDB and support for private sector institutions via IDB Invest to enhance sustainability and climate-related risk reporting.
- Policy Engagement: Provision of technical assistance and facilitation of policy dialogue to aid national adoption and regulatory alignment with the IFRS Sustainability Disclosure Standards.
The initiative arrives at a time of growing momentum for sustainability disclosure across the region, as countries seek to improve financial transparency and align with global frameworks. As part of its commitment, the IDB is also working to align its own disclosures with IFRS standards under a multi-year roadmap.
This collaboration underscores the region’s increasing focus on building resilient, transparent, and sustainable financial systems capable of addressing climate-related risks and supporting long-term development.
