The establishment in Montreal of a center for International Sustainability Reporting Standards Council (International Sustainability Standards Board or ISSB) will move forward. L’IFRS Foundation and Chartered Professional Accountants of Canada(CPA Canada) signed a memorandum of understanding to this effect on April 6, 2022.
The ISSB’s mission is to develop standards for the presentation of uniform and comparable information on environmental, social and governance (ESG) matters.
The protocol establishing the Montreal center is to last for five years. Both signatories are committed to ensuring the long-term success of the ISSB and its center in Montreal. The Montreal center will be responsible for key functions of the ISSB, including organizing board activities for all of the Americas. The next meeting of the directors of the IFRS Foundation will take place in Montreal from June 28 to 30, 2022.
The Montreal center will also have important responsibilities in standardization. In addition, he will work closely with the San Francisco office. The American city hosts the headquarters of the Value Report Foundation whose consolidation with the IFRS Foundation is scheduled for June 30, 2022.
Globally standardized durability
The choice to establish an ISSB center in Montreal had been announced by Finance Montreal on the sidelines of COP26, conference of United Nationson climate change which took place in Glasgow, Scotland, in November 2021. The city of Frankfurt in Germany had also been designated among the metropolises which will host an ISSB center. It was also during COP26 that the IFRS Foundation announced the creation of the ISSB.
“Montreal is a city respected in the field of sustainability and with a resolutely international orientation,” said Erkki Liikanen Chairman of the Trustees of the IFRS Foundation. Together with Frankfurt, it will be a nerve center for the ISSB. »
President of the ISSB, Emmanuel Faber said he was delighted with the choice of Montreal. “This city gives us access to a valuable ecosystem in terms of sustainability, on which we can base our work,” he added.
Mayor of Montreal, Valerie Plantebelieves that thanks to the work of the ISSB, companies will be encouraged to implement even more green economy projects. “The entire economy of the metropolis will benefit,” she says, recalling that Montreal has a crucial role to play in reducing greenhouse gases (GHGs).
CPA Canada: a driving force
The signatories specify that the Montreal Accord takes the form of a protocol focused on the private sector, mentioning the contribution of CPA Canada. “CPA Canada will work with a wide range of stakeholders who have come together to contribute to the funding and operation of the ISSB and the center established in Quebec,” reads the press release of the agreement.
CPA Canada recalls that it led collaborative efforts to implement a coalition of “Canadian Champions of International Sustainability Reporting Standards” in Canada. Under the memorandum of understanding, CPA Canada will retain this role, which it describes as a “driving force”.
“Canada has clearly demonstrated its strong commitment to international sustainability reporting standards by mobilizing broad support for the ISSB and the establishment of a center in Montreal,” said Richard Olfert Chairman of the CPA Canada Board of Directors.
The insurance industry on the lookout
The insurance industry cares about sustainability. Among others, sun lifeannounced during the publication of its financial results for the 3rd quarter of 2021 its intention to achieve carbon neutrality by 2050. Shortly before, the insurance company had appointed Alanna Boyd Senior Vice President and Senior Director of Sustainability.
The reinsurer Swiss Re recently revealed that damage from natural disasters reached US$270 billion (US$B) in 2021, including $111B of damage covered by insurance. The reinsurer at the same time urged insurance companies to be more concerned about damage caused by floods, which he said affected nearly a third of the world’s population in 2021, more than any other type of loss.
The industry is also closely following the work of the IFRS Foundation, the body behind theInternational Accounting Standards Board(IASB). The IASB has issued International Financial Reporting Standards (IFRS for International Financial Reporting Standards), of which IFRS 17 insurance contracts is a part, which will come into force on January 1, 2023. The 2022-2023 budget of the Minister of Finance of Canada, Chrystia Freelandis also proposing legislative amendments to support the use of IFRS 17.