Zurich: Large multilateral organizations will launch new initiatives next week aiming to develop a standard system for companies, investors and financial institutions to measure their impact on global sustainability.
The new impact management platform was founded by organizations including four UN agencies, organizations for economic and development cooperation (OECD) and the World Bank.
Regulators and multilateral institutions are looking at ways to replace the patch of social disclosure and voluntary environment, aiming to overcome “greenwashing” by organizations who want to present themselves as ethical.
IOSCO, the global umbrella body for securities regulators, has helped establish the International Sustainability Standard (ISSB) Agency, which was launched at the Global Cop26 Climate Summit U.n.
in Scotland earlier this month.
The founders of the impact management platform say they aim to surpass the risk model and return, where the organization determines and discloses information that can affect short-term financial performance, and take a broader view of how their activities affect the community and the planet.
“More and more, investors and actors in the financial and corporate systems will be expected to have a better understanding of the impacts they have on their customers and through their financing,” Eric Usher, Head of Finance of the United Nations Environmental Program Initiative, told Reuters.
“This includes seeing the whole process of how to increase the impact, (not only) Disclosure,” Romina Boarini, Director of the OECD Center for Welfare, Inclusion, Sustainability, and the same opportunity, added.