In the Euro Area, bank assets have a level equivalent to 300% of GDP, compared to 85% in the US. Equity shares listed on stock markets stand at 68% of GDP, below the United States’ 170% of GDP.
The initial focus of the IFRS will be on climate standards, while allowing for interoperability with individual jurisdictions' frameworks, that may go beyond climate-related impacts. Consistency in one-way disclosures would provide a needed avenue for accurate and appropriate risk assessment and comparability to assess investment decisions. Simultaneously, the IFRS standards are intended to provide flexibility for national authorities to build on the baseline.