France’s central bank has warned that developing global sustainability reporting standards via the IFRS Foundation could give undue influence to the US and other countries that do not support IFRS standards on home turf.
The IFRS - or International Financial Reporting Standards - Foundation is a non-profit body which develops the accounting standards used by 166 jurisdictions. It plans to start setting corporate sustainability reporting standards, and has just closed a second consultation on creating an ‘International Sustainability Standards Board’ (ISSB) to oversee such efforts.
In its response, the Banque de France said it “deeply regrets” that concerns it raised during the first consultation had not been addressed - including worries that the proposed governance structure for the new board could give significant power to jurisdictions that neither fund nor promote standards issued by the IFRS.
Under current plans, the ISSB would ha…