Without convergence between standards and taxonomies, market fragmentation and investor uncertainty will delay climate action.
A path is being forged to international standards for sustainable finance. The increase of standards and regulatory requirements brings challenges, including jurisdictional and sector differences, and varying principles, objectives, benchmarks and metrics in taxonomies and disclosure frameworks. As a result, many are calling for a baseline, common ground taxonomy and convergence of standards.
The report, published by SPI and LFF, examines whether there should be convergence of standards internationally, the implications of standardisation and potential benefits of divergence and the market-led approach being taken by the US. It assesses the need for a common language across standards and looks at the expected role of the newly created International Sustainability Standards Board in providing a global baseline and convergence for disclosure standards.
