US regulator quits ISSB groups

SEC exits groups set up by the IFRS Foundation to foster global sustainability disclosure standards

The Securities and Exchange Commission (SEC) has exited groups run by the International Financial Reporting Standards (IFRS) Foundation to help establish global sustainability disclosure standards.   

The SEC is no longer a member of the IFRS Sustainability Jurisdictional Working Group, whose other members include the Chinese Ministry of Finance, the European Commission, the Japanese Financial Services Authority and the UK’s Financial Conduct Authority. 

The group was set up in 2022 to gather feedback on the work of the International Sustainability Standards Board (ISSB) and “establish dialogue for enhanced compatibility” between different regions developing sustainability reporting rules.  

A spokesperson for the IFRS Foundation confirmed the SEC’s departure earlier this year, and noted that the US regulator was no longer an observer of its Sustainability Standards Advisory Forum either. 

Since the re-election of president Trump, the SEC’s position on sustainability has shifted substantially. 

Last month, it confirmed it won’t defend its incoming climate disclosure rules – introduced under the Biden administration – against legal challenges from states, companies and NGOs. 

When approached, an SEC spokesperson directed REP to its website and did not provide any further comment on its membership of the IFRS groups.  

Last week, Canada’s capital markets regulator announced it was halting its work on mandatory climate and DEI disclosures, while India’s regulator SEBI also looks set to rethink its sustainability reporting requirements after facing pushback from industry.