IFC and South Africa’s FSCA Partner to Advance Sustainability and Climate Reporting

Johannesburg, South Africa, July 22, 2025 - In a landmark move for corporate transparency and climate accountability in Africa, the International Finance Corporation (IFC) and South Africa’s Financial Sector Conduct Authority (FSCA) have signed a Cooperation Agreement to support the development of climate and sustainability reporting regulations aligned with the International Sustainability Standards Board (ISSB).

The agreement marks the first formal step by a South African regulator toward adopting the ISSB standards. These global standards offer a consistent and comparable baseline for companies to disclose climate-related risks and opportunities, helping regulators, investors, and financial markets respond effectively to climate challenges. Adopting these standards helps position the FSCA as a leader in advancing transparency, climate risk management, and sustainable finance across the region.

“This partnership reflects our shared vision for a sustainable financial sector that supports inclusive economic development and long-term stability,” said FSCA Deputy Commissioner Astrid Ludin. “We are proud to take this important step with IFC and the IFRS Foundation, bringing world-class sustainability reporting practices to South Africa.”

The initiative is part of IFC’s Beyond the Balance Sheet program and is delivered in close collaboration with the United Nations Development Programme (UNDP), the IFRS Foundation, and IFC’s Integrated ESG Program. It will support the FSCA in developing a jurisdictional roadmap for ISSB adoption, tailoring regulatory frameworks to local market conditions, and building capacity among supervisors and regulated entities.

“This collaboration will help bring global consistency to climate-related disclosures while meeting the specific needs of the South African market,” said Chuck Canfield, IFC’s Global Manager for Corporate Governance. “South Africa is setting a regional precedent by equipping regulators and companies to navigate the evolving sustainability landscape.”

As part of the agreement, IFC and FSCA will co-develop practical implementation tools, including Board of Directors guidance and supervisory training, and engage stakeholders across the financial and corporate sectors to ensure broad-based uptake of the standards.

This partnership builds on the broader strategic alliance between IFC and the IFRS Foundation aimed at accelerating the adoption of ISSB standards across emerging markets and developing economies.

Read the full joint press release here: https://bit.ly/4kRA06c