Rwandan regulators kick-started discussions around the jurisdictional adoption of ISSB Standards
Description
On July 31st, a regulatory roundtable was held in Kigali to discuss the adoption of the IFRS Sustainability Disclosure Standards (ISSB Standards) in Rwanda. The Standards were published by the International Sustainability Standards Board (ISSB) in June 2023 and are meant to provide a global baseline for decision-useful, comprehensive and comparable sustainability information to support investors’ decisions.
The roundtable was organized by the Institute of Certified Accountants of Rwanda (ICPAR) and the Central Bank (Banque Nationale du Rwanda - BNR) with the support of GIZ’s Global Project Sustainable Economic Transformation and Sustainable Finance on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and co-financed by the European Union.
The event brought together key stakeholders from BNR, ICPAR, the Ministry of Finance and Economic Planning (MINECOFIN), the Capital Markets Authority (CMA), the Rwanda Stock Exchange (RSE) and the Rwanda Development Board (RDB) to discuss Rwanda’s envisaged adoption journey of ISSB standards.
IFRS Foundation staff members and the ISSB Member provided valuable technical inputs both in person and virtually. They highlighted the need for globally comparable standards for sustainability-related information that enhance transparency in the markets fostering investors’ ability to assess and price sustainability-related risks and opportunities-and hence supporting the Rwandan capital markets unlock the potential to attract capital flows, including for financing sustainability-related initiatives. Experts analysed both the IFRS S1 and IFRS S2, emphasizing core concepts such as the provisions addressing proportionality and the definition and assessment of material information for investors. They also presented the Inaugural Jurisdictional Guide which outlines key considerations for designing and planning a country’s adoption journey.
Roundtable participants discussed the current state of play related to sustainability reporting in Rwanda and various pathways towards adoption of ISSB Standards. The importance of a collaborative regulatory approach was stressed to develop a cohesive and comprehensive jurisdictional roadmap for Rwanda. Members agreed to create a committee of regulatory stakeholders to drive the adoption process, with the private sector closely involved in these discussions. ICPAR volunteered to drive the process towards adoption of ISSB Standards in Rwanda and convene stakeholders accordingly.
Going forward, the Global Project will continue to support Rwandan partners in developing Rwanda’s adoption roadmap as well as support drafting guidelines for financial institutions to implement the standards in accordance with the requirements under the IMF’s Resilience and Sustainability Facility.
Background
Rwanda is in good company to adopt the ISSB Standards, as jurisdictions accounting for around 55% of global GDP, 40% of global market capitalization, and 50% of global greenhouse gas emissions have already decided to use or are taking steps to introduce ISSB Standards in their legal or regulatory frameworks. Rwanda is one of the early movers towards adoption of ISSB Standards in the region and is committed to developing a national adoption roadmap defining the objectives and milestones towards the adoption of ISSB Standards, taking into consideration the jurisdiction’s particular circumstances. Embedded in the development of the adoption roadmap will be the development of guidelines for financial institutions, clearly outlining the entities falling within the scope, the content and timelines of the reporting requirements.
Partners
Since 2023, GIZ and IFRS Foundation are collaborating to support emerging and developing economies in adopting ISSB Standards.
The roundtable event in Rwanda follows a sustainability reporting conference held in Brazil in May 2024, that was jointly supported by IFRS and GIZ.
