The International Financial Services Centres Authority (IFSCA) on November 21, 2024, issued a notification regarding the Recognised stock exchanges in the IFSCs Issuers who have listed/propose to list ESG labelled debt securities in the IFSCs.
IFSCA) has outlined principles to enhance transparency, accountability, and disclosure for issuers of ESG-labelled debt securities in IFSCs. Recognizing the role of Green, Social, and Sustainability bonds in sustainable development, the guidelines aim to address concerns about "greenwashing," which refers to misleading claims about the environmental or social benefits of financed projects or assets.
The principles align with international standards, such as ICMA Guidelines, Climate Bonds Standards, and ASEAN Standards, requiring issuers to adhere to recognized frameworks. The IFSCA Listing Regulations, 2024, mandate initial and annual disclosures and the appointment of independent external reviewers to validate compliance with sustainability standards.
The initiative complements global efforts, including the IOSCO Good Sustainable Finance Practices and ICMA's 2023 report, to address risks like strategic inconsistency and mismanagement in sustainable finance. These measures aim to bolster investor confidence, ensure market integrity, and create a level playing field among issuers.
[Notification No. IFSCA-DSF/6/2024-Capital Markets]
