The program, held under the EU’s Accelerating Climate-Smart and Inclusive Infrastructure in South Asia (ACSIIS) initiative, is a continuous process to engage Nepal’s private sector towards adopting globally recognized sustainability standards.
Led by IFC experts with hands-on experience in both Nepal and international markets, the training brought together 40 participants from the real sector and more than 50 representatives from banks and financial institutions. The program highlighted the growing momentum within Nepal’s private sector to align with the International Sustainability Standards Board (ISSB)’s globally recognized sustainability disclosure standards. Driven by investors who are inclined to sustainability and demand detailed disclosures and consumers who are becoming increasingly informed and concerned about the social and environmental impacts of their consumption habits, corporate reputation and performance are more than ever tied to sustainable corporate practices and transparency.
“Providing sustainability-related financial information alongside traditional financial reporting reassures capital providers that companies are effectively managing material risks and seizing opportunities arising from the transition to a more sustainable and resilient future” said Niranjan Phuyal, Acting CEO, NEPSE.
In recent years, the ISSB’s IFRS Sustainability Disclosure Standards have emerged as the global baseline for investor-oriented sustainability disclosures. These standards have garnered widespread support from businesses, investors, and multilateral organizations.
Governments and securities market regulators worldwide are increasingly adopting these standards on a mandatory basis; so far over 20 jurisdictions, including Bangladesh and Sri Lanka, have adopted these standards, underscoring their importance in shaping the future of corporate reporting.
"Transparency is crucial to instill trust among investors and stakeholders. What we are witnessing in Nepal is part of a broader global movement, including in the EU, where sustainability and accountability are becoming central to business practices,” said Ms.
Geertrui Louwagie, Deputy Head of Cooperation, Delegation of the European Union to Nepal. She further added, “Given Nepal's vulnerability to natural disasters and the impacts of climate change, it is even more critical to focus on identifying risks and capitalizing on opportunities.
From a climate perspective, Nepal holds immense potential to leverage sustainable practices and unlock new opportunities for resilience and prosperity."
The training program provided participants with a practical introduction to the foundations of the ISSB Standards, focusing on how these standards can enhance companies’ and financial institutions’ reporting practices to better meet the expectations of current and potential investors and lenders.
“This training will help equip Nepal’s private sector with the tools and knowledge to align with global sustainability standards. By adopting the ISSB Standards, companies can improve transparency, build investor confidence, and contribute to a more sustainable future for Nepal” added Mr. Phuyal from NEPSE.
The collaboration between IFC, NEPSE, and the European Union reflects a shared commitment to fostering sustainable business practices and strengthening Nepal’s financial ecosystem. As Nepal continues to integrate sustainability into its corporate reporting framework, initiatives like this training program will play a pivotal role in driving progress and ensuring alignment with global best practices.
