Impact Disclosure Taskforce Releases Impact Disclosure Guidance, Helping Scale Financing for the UN Sustainable Development Goals
Taskforce calls for feedback on the draft Impact Disclosure Guidance
and the first Sustainable Development Impact Disclosure (SDID) piloted by
Established in April of 2023 and now a 60+ strong network of financial institutions, capital markets participants, and industry stakeholders, the Taskforce was formed to help corporate entities and sovereigns measure and disclose their efforts to reduce major gaps to achieving the United Nations Sustainable Development Goals (SDGs).
The release of the draft voluntary guidance today initiates a four-month public consultation period, from
The voluntary guidance aims to assist corporate and sovereign entities, particularly those in emerging markets and developing economies (EMDE), to use the principles of impact measurement and monitoring to attract sustainable pools of capital. The guidance also envisions establishing mechanisms for disseminating and analyzing disclosed impact information to promote transparency and accountability. The creation of a Sustainable Development Impact Disclosure (SDID) could provide sustainable financiers with more information to assist financing decisions.
The guidance draws on existing resources and outlines a 5-step process for entities to measure and disclose the impacts of their business strategies or national development plans. The guidance reflects a view amongst financiers that the full balance sheet of entities that follow this process would be considered for their sustainable capital allocation. The guidance is characterized by being:
- Entity-level: assesses the entity’s overall strategy in countries of focus, as opposed to project-level frameworks;
- Impact-oriented: focuses on outputs and outcomes, rather than a taxonomy of sustainable activities or eligible investments;
- Forward-looking: establishes targets that measure intended impacts, as opposed to reporting on current sustainability levels; and
- Context-specific: tailors document to account for development gaps in local jurisdictions.
Marc-André Blanchard, Executive Vice-President and head of CDPQ Global, Global Head of Sustainability
“I am proud that CDPQ played an active role in developing this important guidance. Transparent corporate disclosure is a priority for long-term investors because it enables investment decisions based on uniform and comparable data - critical information that contributes to a sustainable future. I am also pleased that one of our partners,
“Mobilizing capital to support the
“Enhanced disclosure on development impact could be transformative in catalysing the needed flow of funds for investment in emerging markets to support their aim in achieving their SDG targets.”
“This guidance will help connect sustainable investors with entities that are accountable to tackling the development challenges in their countries. By connecting like-minded people and empowering them with relevant data, we can make strides towards achieving our global goals.”
“We are thrilled about the launch of the consultation period and crave for thoughtful feedback. Our endeavor is to harness market signals to sustainability data, providing enhanced financial terms to SDG contributing entities, and creating meaningful investing opportunities.”
“I am pleased to see the progress made by this taskforce since
The Taskforce welcomes feedback on the draft guidance and invites you to provide such feedback by visiting www.orrick.com/IDTfeedback.
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