Over $3 trillion has flowed into investments specifically touting their environmental, social and governance credentials reported under scores of voluntary disclosures, stoking regulatory concerns about greenwashing.
"We will end up in a situation which is potentially even worse than what we have financially," she added, referring to failed attempts at deeper convergence between accounting rules in the United States and those from a sister body of the ISSB. "If you believe in the capability of a financial market to take information as a signal to allocate capital effectively, getting inconsistent signals just weakens the system.
"It means firms operating many jurisdictions have to continually adjust their systems. And there is a big question as to whether they will start to converge to a common set of standards.""The key point here is that we will not get perfect harmonisations," Ashley Alder, chair of IOSCO, the global forum for securities regulators like the SEC and a driving force behind the ISSB, told a conference this month.
Saskia Slomp, chief executive of EFRAG, the body drafting EU disclosures, said everyone was working towards a common goal.