AIIB Releases First Sustainability Report With ISSB

The Asian Infrastructure Investment Bank (AIIB) has released its first-ever Sustainability Report, a key step in aligning with global climate-related financial reporting standards. The 2024 report makes AIIB one of the first multilateral development banks to voluntarily use the International Sustainability Standards Board (ISSB) disclosure framework. This move improves transparency around the bank’s climate efforts and strengthens its role as a leader in sustainable development finance.

AIIB’s decision follows a pledge by multilateral development banks at COP28 to support a global baseline for sustainability disclosures. By adopting the ISSB framework, AIIB shows its commitment to COP28 goals and sets an example for other development banks.

The report details how AIIB integrates climate considerations into its governance, strategy, and risk management. For the first time, it includes data on the bank’s financed emissions, giving stakeholders important insight into its climate impact. Despite these disclosures, the report finds that climate-related financial risks do not currently affect the bank’s financial position, highlighting AIIB’s resilience amid global climate challenges.

AIIB President Jin Liqun emphasized the bank’s commitment to transparency and leadership in development finance. “Our mission to finance Infrastructure for Tomorrow requires us to lead by example,” he said. “This report shows our strong commitment to transparency and the importance of clear, comparable disclosures for better decisions and outcomes.”

The report stresses that adopting ISSB standards is more than just following rules—it’s about building trust with investors and stakeholders. By embracing international best practices, AIIB aims to show it can create long-term value while supporting the global move toward low-carbon, climate-resilient growth.

Andrew Cross, AIIB’s Chief Financial Officer, echoed this view: “As a player in capital markets, AIIB values consistent, credible sustainability data. Using ISSB Standards helps us build stakeholder trust, lower perceived risks, and support long-term value creation.” His comments highlight that sustainability reporting is not just about managing risks but also about boosting investor confidence and ensuring funding for sustainable infrastructure.

The report’s release coincides with AIIB’s mid-year financial results and uses transition relief measures from ISSB. This practical approach lets AIIB start reporting under the new standards while preparing for more detailed disclosures later. It shows the bank’s effort to balance strong global standards with manageable reporting during the transition.

AIIB’s move is expected to influence the development finance sector. Founded in 2016, AIIB has quickly become a key funder of infrastructure projects in Asia and beyond. By adopting ISSB standards early, it positions itself as a forward-thinking institution ready to embrace global sustainability norms. This could encourage other institutions to adopt these standards faster, creating more consistency in international development finance.

The report also sends a clear message to AIIB’s member countries and partners that the bank supports their shift to low-carbon economies. The disclosures improve visibility into how AIIB manages climate risks, reassuring stakeholders that the bank is building resilience into its projects. This is important as investors and policymakers increasingly focus on aligning financial flows with the Paris Agreement.

AIIB’s adoption of ISSB standards reflects wider trends in sustainable finance, where transparency and consistent data are seen as essential for mobilizing capital at scale. With growing pressure from governments, regulators, and investors to show how climate risks are handled, voluntary use of international standards signals leadership and accountability.

Looking ahead, AIIB plans to expand its reporting under ISSB as the standards evolve and gain wider acceptance. For now, this inaugural report lays the groundwork for better dialogue with investors, policymakers, and civil society, reinforcing AIIB’s mission to finance sustainable infrastructure that supports long-term development.

By combining transparency with clear planning, AIIB’s first Sustainability Report marks an important milestone. It contributes to global efforts to create a more consistent and reliable system for sustainability disclosures and places the bank at the forefront of a major shift in development finance, where climate accountability is key to success.