The Role of the ISSB in Frankfurt as a Co-Shaper of Global Rules

With courtesy of Frankfurt Main Finance. This is a copy of the original post on the Frankfurt Main Finance website, first published as a guest contribution in Börsen-Zeitung.

The ISSB anchors Frankfurt in the competition for global sustainability standards. What remains decisive is how closely Europe’s rules align and how this relieves the burden on companies. A guest contribution by Oliver Behrens, President of Frankfurt Main Finance, in Börsen-Zeitung.

The concept of European autonomy has gained considerably in importance in recent years. Geopolitical tensions, growing confrontational economic competition, and challenges such as climate change and digitalization are forcing Europe to strengthen its international capacity to act.

Autonomy here does not mean isolation or economic self-sufficiency. Autonomy means clearly defining European interests, setting priorities, and effectively representing them in an interconnected world. This includes common rulebooks—or at least ones that are seamlessly coordinated with one another and spare companies duplicated work—also in sustainability reporting.

Whoever sets globally recognized standards in sustainability reporting directly influences global capital flows and corporate valuations. For Europe’s voice to carry more weight in the debate over such standards, a sense of proportion is required. That was the case, for example, in the decision on how comprehensive and how detailed companies must report so that investors receive sufficiently robust and comparable information to assess a company’s sustainability.

Sustainability has long been a central factor influencing economic decisions. Investors, companies, and supervisory authorities need reliable, comparable, and internationally recognized information on climate risks, environmental impacts, social factors, and good corporate governance.

This is precisely where the ISSB comes in. It develops globally uniform standards for sustainability reporting. This “global baseline” makes sustainability information more comparable, more transparent, and more usable for investors. Since its founding in 2021, the ISSB has been driving the harmonization of global sustainability reporting for capital markets. More than 45 jurisdictions have already committed to adoption and are preparing accordingly; in 18 of them, reporting is to begin in 2027. And in Europe, the Delegated Act of July 2026 marked another important step toward treating both sets of standards as functionally comparable. The goal would be to obtain IFRS Adoption Status for the EU as confirmation of equivalence, so that companies with their ESRS reports are at the same time compliant with the ISSB’s requirements.

Whoever develops international standards, accompanies their implementation, and promotes their application sets the benchmarks by which companies and capital markets orient themselves. They are thus an essential instrument of economic shaping power.

With the European Sustainability Reporting Standards (ESRS), Europe is pursuing an approach of its own. The standards are developed by the European Financial Reporting Advisory Group (EFRAG). They take into account not only investors’ information needs but also the effects of corporate action on the environment and society, as well as the European Union’s related policy objectives.

There is no contradiction between the ISSB and EFRAG. On the contrary: both institutions are working to make their rulebooks compatible. The goal is clear: avoid double reporting and safeguard companies’ competitiveness.

Such an approach is also, not least, an expression of European autonomy. Europe is not decoupling itself; rather, it actively brings its ideas into the global standardization process. In this way, European values and regulatory approaches gain international effectiveness. Influence arises not through demarcation but through cooperation, expertise, and institutional shaping power.

A close alliance on sustainability reporting enables the greatest possible compatibility and prevents Europe from drifting onto an isolationist special path. It is therefore important that the ISSB, from its location in Frankfurt, continue to work together with the European Commission to advance the close interlinking of European and international standards.

The close cooperation between the ISSB and EFRAG, as well as Frankfurt’s role as a European hub for sustainability standard-setting and its connection to Brussels, demonstrate precisely that. Europe gains influence when it cooperates, leverages institutional strength, and helps shape global rules. In this way, Europe consolidates its autonomy in an increasingly globally interconnected world.

Originally published by Frankfurt Main Finance: The Role of the ISSB in Frankfurt as a Co-Shaper of Global Rules.