ISO 32210 – THE FIRST ISO STANDARD ON

SUSTAINABLE FINANCE
ASSISTS ESG CONSIDERATIONS

22.02.22
 ISO & ISO TC 322
Overview of the Standard and how the
need has arisen

Dr. Peter Young

Chair of ISO TC 322 Sustainable Finance
 Cyprus Organisation for Standardisation

Introducing ISO, TC322 on Sustainable

Finance, and our Standardisation Work

Peter Young Chair, ISO/TC322

Webinar: “ISO 32210 – The first ISO Standard on

Sustainable Finance assists ESG considerations”
nd
12.00-13.30 22 February 2022
4
Introducing ISO

International Organization for Standardization

Contents
• Independent non-governmental organization
• Global network of national standards bodies
• Well-established, proven consensus-building process
• 165 members: https://www.iso.org/members.html
5
‘ISO/TC 322’ – A Short History

• ISO Technical Committee 322 on Sustainable Finance (SF)

• Contents
First plenary meeting March 2019
• Strategic Business Plan published April 2020
• 25 participating + 18 observer countries and growing
• 12 external liaison members, incl. EC, EEA, SVI, GABV, IIF
• Leads ISO’s contributions to eg ISSB/IFRS, TNFD
6
ISO/TC 322 Scope
“Standardization in the field of sustainable
Contents
finance to integrate sustainability
considerations including environmental,
social and governance practices in the
financing of economic activities”
Rationale: The Sustainable Finance
Ecosystem
Contents
 Rationale: A Single Global Structure
Umbrella standard: ISO 32210
Contents Dimension A

Stewardship
Assurance and Transparency Impact
management/
Verification and disclosure assessment
governance

Sustainable finance
institution (SFI)
Standard 5

Sustainable finance
product (SFP) Standard 6

Standard 1 Standard 2 Standard 3 Standard 4

Dimension B

A Repository
for all:
9
Strategy: Amplifying role of ISO
to deliver the transition to SF
• Delivery of core work through 5 main internal activities:
Contents
1. Collaborative work within ISO: eg in finance, asset management,
governance, environmental performance and social responsibility
2. Develop a SF framework standard – ISO32210, the DIS was
published last month and is the main topic today
3. Publish a terminology guide TR32220, available since August 2021
4. Combine experts to produce joint input standards such as the
Guidance on environmental criteria for projects, assets and activities
to support the development of green finance (ISO14100) and Green
Debt Instruments series (ISO14030) Parts 1 to 4
5. Contribute to harmonization, alignment and demystifying of SF
standards in approach to selecting work on new ISO standards

• Reach out to new countries and enable engagement

• Bringing ISO experience to international initiatives…
 Strategy: Amplifying role of ISO –
External Activities
Bringing ISO experience to international initiatives - Examples:
Contents
1. Input to Mark Carney chaired Quarterly Global Climate
Reporting International Organizations Roundtables pre-
COP26
2. Contribution to development of IFRS proposals to establish an
International Sustainability Standards Board (ISSB)
3. IOSCO Sustainable Taskforce Roundtable on Sustainability-
related Financial Disclosures
4. Knowledge partner to G20 Sustainable Finance Working
Group and the G20 Sustainable Finance Road Map
5. Contributed (via ISO CCCC) to technical appendix of relevant
standards for Taskforce for Scaling Voluntary Carbon Markets
6. ISO representative on TNFD Forum
7. ISO representative on UNFCCC Race to Zero Working Group
1 on net zero finance and disclosure of climate-related risks
8. TC322 input to key international initiatives including EFRAG
11

ISO TC 322 Next Steps

• Encourage dialogue and input to get the framework and
principles for sustainable financeContents
in ISO32210 locally useful
and globally consistent – today you can help!
• Develop further standards and encourage experts to join us:
1. A Standard for Sustainable Financial Products & Services
2. A Standard for Sustainable Venture Capital/Private Equity Funds
3. A Standard for ESG Impact Assessment - focussed on Transparency
& Disclosure
4. Possibly as a separate initiative or within 3. above the Social Aspects
of Sustainable Finance

• Ensure the ISSB governance structure reflects the breadth

of its responsibilities and build mutual support with ISO
 Thank You
for Your Attention

For more information on ISO/TC 322 Sustainable Finance see

ISO page or Committee Website

or contact: Mike Henigan, Committee Manager –

[email protected]

Mike HENIGAN
 “ISO/DIS 32210 – Sustainable Finance:
Principles and Guidance”. Benefits, Scope,
Structure, Principles & Implementation

Mr. Hayden Morgan

Convenor, WG 1 of ISO TC 322 Sustainable Finance
 ISO 32210
Sustainable Finance: Principles & Guidance

Hayden Morgan
Convenor, ISO/32210, Founder / Director: Morgan Green Advisory
[email protected]

Agenda

1. ISO & development of the Standard

2. Benefits of the Standard
3. Scope / Contents
4. Principles & Guidance
5. Invitation to participate
 ISO & Development of ISO 32210

• Consensus-driven solutions for global challenges

• Standard drafting process is credible, trusted and transparent
• Standards are often used as pseudo-regulation
• Ideal platform for Sustainable Finance

ISO 32210: Sustainable Finance: Principles & Guidance

3 year programme • Commenced 2019

100s of experts • From over 25 countries

1000s of comments • To review, consider and agree

>15 meetings • Plus numerous sub group and editing meetings

7 Principles • Core to the standard

 ISO 32210, Sustainable Finance: Principles & Guidance
Benefits
• Financial sector crucial to enable sustainable transition
• >$1 trillion / yr additional investment to meet Net Zero / Paris goals, plus SDGs
• ISO 32210 supports organizations integrate sustainability governance
• ISO 32210 enables access market opportunities, added value, risk management

Transition • Transition activities toward contributing to long-term sustainability goals

• Drive value in realizing new investment opportunities presented by the global

Drive Value transition

£$€¥ Sustainable & Profitable • Enhance both sustainability performance & long-term commercial returns

Risk • Identify & mitigate risk

Stakeholders • Understand and align to stakeholders’ expectations

 ISO 32210, Sustainable Finance: Principles & Guidance
Benefits
• Transparent assessment, management, and reporting
• Covers all dimensions of sustainability
• Enables confidence and reassurance for key stakeholders

• Supports other initiatives & regulation

Cohesion • TCFD, Disclosure, Taxonomies, PRI, ISSB

Good practice • Benchmark for organizations to reference

• Clarity & demonstration of alignment of interest

Transparent • Reduces risk of ‘greenwash’

• Curated & dynamic web-based resource to support implementation

Relevant • Ensures relevance
 ISO 32210, Sustainable Finance: Principles & Guidance
Scope

• Principles & Good Practice

• Focus on material ESG / Sustainability issues
• Whole organisational activities: From ‘Strategy’ to ‘Products & Services’

• What is material from the organizational perspective?

• Guidance on application of sustainability principles & practices, eg for

investment and financing activities.

• Demonstrate alignment with sustainability principles, guidance and practices

through operations, actions, reporting and disclosures.

• Applicable for all organizations in financial sector, including direct lenders,

investors, asset managers and service providers.
 ISO 32210, Sustainable Finance: Principles & Guidance
Contents

ISO 32210 Contents

1. Scope
2. Normative references
3. Terms and Definitions
4. Sustainable Finance Principles Sustainable Finance Principles
i. Governance and culture
ii. Strategy alignment and objectives
iii. Risk & opportunity management & impact assessment
iv. Stakeholder engagement
v. Monitoring and measuring
vi. Reporting, transparency and assurance
vii. Continual performance improvement and enhancing
ambition
5. Sustainable Finance – Implementation (Guidance)
 ISO 32210, Sustainable Finance: Principles & Guidance
Principles
Holistic approach - Principles are overarching and interactive by design.
 ISO 32210, Sustainable Finance: Principles & Guidance
Implementation Guidance
Good Practice guidance provided to support operational implementation

• Defined board commitment and accountability.

Governance & culture • Identify value, liability, impact, risk and risk mitigants.
• Implement a strategy into all appropriate processes and activities.

• Sustainability Policy: ambitious goals, commitments, embed operations.

Strategy alignment & objectives • Alignment with global sustainability goals / stakeholders expectations.
• Transformational change to reframe purpose, values and mission.

• Robust understanding of impacts and risk/opportunity management.

Risk & opportunity management • Materiality may include dual and/or dynamic materiality considerations.
Impact assessment • Conduct scenario analysis, assess future risks and opportunities.

• Effective engagement with relevant stakeholders.

Stakeholder engagement • Insights, understanding, mitigate risk, identify best & lagging practices.
• Feedback integrated within implementation of the Principles.

• Strategic goals supported with metrics and KPIs to measure progress.

Monitoring & measuring • Focus on material and reverent factors.
• Measurement shows performance, outcomes, impact, benchmarking.

• As a minimum, publicly demonstrate progress with each Principle.

Reporting, transparency & assurance • Progress toward strategic goals & objectives (metrics and KPIs).
• 3rd party review to support trust & confidence is good practice.

• Continual improvement of sustainability outcomes & impacts.

Continual performance improvement
• Enhancing ambition to global environmental & social goals over time.
Enhancing ambition • Periodic review of performance, processes and organizational capacity.
 ISO 32210, Sustainable Finance: Principles & Guidance
Key Documentation
• Key documents and outputs from implementation of the Principles and Guidance may
include…

• Sustainability Statement or Policy • Stakeholder Engagement Plan

• Development of strategic goals on • Benchmarking / Peer Review / Gap

material sustainability issues Analysis

• Development of suitable metrics and • Transition Plan

associated key performance indicators • Strategic Implementation Plan
• Executive / board accountability for • Scenario Analysis / Risk Impact
sustainability matters Assessment and Mitigation Plan
• Executive / board compensation aligned • Public reporting showing material and
with sustainability performance and relevant progress, performance and
outcomes outcomes
• A systematic review of existing • External Assurance Statement
organizational processes and resources
 ISO 32210, Sustainable Finance: Principles & Guidance
Key users and interested parties
Implementation of the principles and guidance will require interfacing with a number of
organizational departments, roles and stakeholders.

Successful integration of sustainability requires engagement with many internal and

external stakeholders, including those responsible for:

• Fulfilling fiduciary responsibilities

• Setting and monitoring progress against strategic goals

• Understanding and monitoring risk

• Developing new products and services

• Ensuring legal compliance

• Approving investments / capital allocation

• Monitoring portfolios

• Engagement with, and reporting to, stakeholders

 ISO 32210, Sustainable Finance: Principles & Guidance
NOW OPEN: DIS Review & Ballot
• TC322 Committee Ballot set up for members to submit vote.
• Comments from members and liaison organizations.

Review period / ballot: Now open closes 7 April 2022

 ISO 32210, Sustainable Finance: Principles & Guidance
Get Involved

https://www.iso.org/committee/7203746.html

https://committee.iso.org/home/tc322

In Cyprus: CYS
 “ISO/DIS 32210 – Sustainable Finance:
Principles and Guidance”.
How to get involved. Future actions of
ISO TC 322 – Challenges & Opportunities
Mr. Mike Henigan
Committee Manager of ISO TC 322
Sustainable Finance
ISO/TC 322 Sustainable Finance

✓ How to get involved

✓ Future actions
✓ Challenges & opportunities

Mike Henigan
Committee Manager, ISO TC 322
[email protected]
ISO/TC 322 Sustainable Finance

How to get involved

Cyprus Organisation for Standardisation, CYS, is
one of the 25 Participating member of ISO/TC 322

➢ Nominates delegates to TC322 plenary

➢ Vote/comment on new work proposals (NWIP),
committee draft (CD), Draft International Standard (DIS)
➢ Nominate expert(s) to participate in any of TC322
working groups, ad hoc groups, study groups
ISO/TC 322 Sustainable Finance – Structure

➢ Working Group 1 Sustainable Finance Framework

(ISO 32210)
➢ Working Group 2 Terminology (incl. ISO TR 32220)
➢ Ad Hoc Group 2 Future Standards Development
➢ Technical Advisory Group on Sustainable FinTech

➢ Chair’s Advisory Group (CAG)

➢ Advisory Group Communications and Engagement
(AGCE)
ISO/TC 322 Sustainable Finance – Standards

ISO DIS 32210 Sustainable Finance: Principles and

Guidance
➢ Voting closes April 2022, WG1 will review comments
➢ Final Draft for ballot Q3 2022
➢ Expect publish November 2022

ISO/TR 32220 Sustainable Finance – Basic Concepts

and Key Initiatives
➢ Published August 2021 – kept under review by WG2
ISO/TC 322 Sustainable Finance – Pending

ISO PWI 32211 Sustainable Finance ISO PWI 32212 Sustainable Finance
Products and Services Private Equity & Venture Capital Funds
Status: NWIP expected Q1/2022 (China) Status: NWIP expected Q2/2022 (China)
Type & Scope: Technical Specification - Type & Scope: Standard - Guidance &
Guidance to integrate sustainability aspects requirements for PE/VC funds with holistic
when developing and presenting products and sustainability integration / ESG focus
services
Aim: Provide practical guidance for ESG
Aim: Strengthen credibility and transparency integration and impact documentation
Basis: Existing & developing approaches of Basis: Existing/developing approaches of
legislations, financial sector initiatives and legislations, financial sector initiatives and
recent ESG covering ISO standards standards
Time: 24 month dev. Track for ISO -Technical Time: 36 month dev. track for ISO - Standard
Specification
ISO/TC 322 Sustainable Finance – Future ideas

AHG2 Future Standards Development

➢ ESG Impact assessment – transparency and disclosure
➢ Social aspects of sustainable finance
➢ Transparency of asset management solutions
➢ ESG properties for asset classes

Volunteers to participate in AHG2 are welcome!

ISO/TC 322 Sustainable Finance – Future ideas

Technical Advisory Group (TAG) Sustainable FinTech

➢ Integrate FinTech with financial sustainable development
(ESG, specific SDGs)
➢ Develop common understanding, examine market needs
➢ Liaison with other TCs, eg TC68 Financial services, and
external organizations
➢ EG “Blockchain Green Bonds”
Volunteers to participate in the TAG are welcome!
ISO/TC 322 Sustainable Finance
Challenges

➢ Fast developing area – how to keep up?

➢ Ensure financial community understands the value that
ISO can bring, our proven consensus-building process
➢ Increase developing countries/emerging market input, eg
Asia/ Africa/ LatAm
➢ Increase activity with key external ‘liaison organizations’
➢ Co-ordination with other ISO TCs and other standards, eg
ISO 14030 series on green debt instruments, ISO 14100
Environmental criteria to support green finance
ISO/TC 322 Sustainable Finance
Opportunities

➢ ISO well placed to fill gaps and provide clarity where

there may be confusion
➢ Developing countries/emerging market can be key
influencers
➢ ISO can be involved with other standards setters such
as new ISSB, VRF, IOSCO
ISO/TC 322 Sustainable Finance
• Committee Website – further background on our work
• YouTube Channel – insights from previous webinars
• ISO page

General ISO information

▪ About ISO
▪ Economic Benefits of Standards
▪ ISO and the UN Sustainable Development Goals
▪ ISO and Climate Change
▪ My ISO Job – a guide for delegates and experts
ISO/TC 322 Sustainable Finance

For information about ISO and ISO/TC 322

Mike HENIGAN
[email protected]

For information about CYS and the national mirror

committee
Natali GIORGALLA
[email protected]
The Cyprus Reality & the way Forward

Mr. Marios Tannousis

Deputy Director General & Head of HQ Unit
Invest Cyprus & Cyprus Representative to the
ISO TC 322 Sustainable Finance
The Cyprus reality and the
way forward
Marios Tannousis
Deputy Director General & Head of HQ Unit Invest Cyprus &
Cyprus Representative to the ISO Technical Committee 322 – Sustainable Finance
 Stakeholders
The stakeholders involved in the field of sustainable
finance include all those participating in the global
financial ecosystem from both the supply and
demand sides of the market.
 Relevant Stakeholders
• Investment related Organizations
• Banking, Financial Services, Asset Managers, Investment
Funds
• Insurance Organizations
• Intermediaries (including consultants, brokers, and
pensions advisers)
• Public market exchange places (including for equities,
fixed income, futures, derivatives and environmental
rights)
• Independent supervisory bodies (i.e. Central bank of
Cyprus, Cyprus securities & exchange commission)
• Ministries & Governmental organizations
• Professional bodies (CIFA, ICPAC, ACCB, CCCI, OEB et al)
• Stakeholders representing social and environmental
interests (i.e. NGOs, Trade Unions & consumer
organisations)
As at 10/02/2022, ISO TC 322 Sustainable Finance has
 Ways to Get Involved &
Benefits
• Through CYS

• It is important to take part in the DIS

• It’s a learning process with a lot to learn and

also network with leading personalities
internationally in the matter of Sustainable
Finance, ESG, UNSDGs

• ISO TC 322 convenes experts from across the

financial community and includes extensive
internal and external liaisons to take expertise
in sustainability
Thank you!
 THANK YOU FOR ATTENDING
ISO 32210 – THE FIRST ISO STANDARD ON
SUSTAINABLE FINANCE
ASSISTS ESG CONSIDERATIONS

22.02.22