The CSRD extends the collective responsibility of the administrative, managerial, and supervisory bodies regarding financial statements and management reports to the ESG information contained therein and derived from the concept of double materiality. Hearing testimonies from directors of major European companies eligible to CSRD the like Axa, Rexel, or Engie confirms various best practices already shared in this blog through various articles. Overview from companies working with Ksapa on some of the issues outlined below. Board of Directors’ Role in the CSRD Era The board of directors is resp ..read more

Ksapa recently organized a webinar focusing on the emergence of voluntary carbon markets (VCM) and their effectiveness in driving the transition to a low-carbon economy. With the increasing urgency to tackle climate change on a global scale, new opportunities offered by VCMs appear promising. Indeed, as the number of companies committing to Net Zero is increasing, VCMs provide an innovative framework to channel financing towards projects able to deliver on such targets. As such, a strong growth is expected with an up to 15-fold increase in demand for carbon credits expected by 2030. However, r ..read more

The SEC rule is out! It has been delayed for over a year, watered down, and will still face intense legal challenges. A more ambitious rule would have provided investors with better information in their attempts to efficiently allocate capital in the age of climate change and would have reduced the challenges of regulatory fragmentation on US firms. However, US listed companies still have a rule, and here’s an overview how it compares to other ESG Disclosure frameworks of reference to date. Main Take Away Comparing US SEC Rules on Climate with CSRD/ESRS and IFRS requirements to date US SEC Rul ..read more

In accordance with the United Nations Guiding Principles on Business and Human Rights, all companies have a responsibility to respect human rights in all their activities, whatever size, sector, location, ownership or structure. This responsibility includes exercising due diligence and integrating a robust and compliant verification and analysis process. This is particularly true for private equity players, who have a front-row seat at every investment decision. Why Investors are Impacted by Human Rights? Human rights are inherent to all human beings, regardless of race, sex, nationality, eth ..read more

The business landscape in the MENA (Middle East and North Africa) region is diverse and dynamic. It encompasses a wide range of industries, including oil and gas, construction, tourism, manufacturing, finance, and technology. There has been a growing emphasis on economic diversification and a shift towards knowledge-based industries in recent years. Promising sectors such as information technology, renewable energy, healthcare, and e-commerce are gaining traction. However, it is essential not to put all the economies of the MENA region in one bucket; there are striving economies like the GCC c ..read more

The Corporate Sustainability Reporting Directive (CSRD) comes into force at the turn of the year of 2024. The time for consistent and comparable reporting, in line with the European Sustainability Reporting Standards (ESRS) begins. The aim of this new regulation is to ensure that sustainability information is given the same importance and treatment as financial information. This applies at all levels: from data quality, indicators, measures taken, reporting and verification to the responsibility of the board of directors.   Although EFRAG, the European Financial Reporting Advisory Gr ..read more

The year 2023 witnessed several regulatory evolutions aimed at accelerating decarbonization and better addressing the social considerations inherently associated with success conditions. Themes like biodiversity and plastic waste gained prominence. This article reviews three key challenges to follow in 2024 for both businesses and investors, whether based in the European Union or engaged in trade with the EU. Advances and New Standards as of January 1, 2024 At the beginning of 2024, the European Union (EU) notably made significant progress in the field of green transition. Several key topics w ..read more

Today, private-sector players in various countries are subject to a number of regulatory obligations. These relate to their sustainability commitments, particularly in terms of non-financial reporting. A number of tools are available to support companies in their compliance efforts, including double materiality analysis. Regulations, Requests, and Standards at Play Drawing up a double materiality matrix is an effective tool for meeting the regulatory obligations to which companies are subject. Here are a few examples of regulatory obligations, and international references, that may influence t ..read more

In April 2021, the European Commission adopted a legislative proposal for a Corporate Sustainability Reporting Directive (CSRD) that requires companies within its scope to report using a double materiality perspective in compliance with European Sustainability Reporting Standards (ESRS) adopted by the European Commission as delegated acts. EFRAG was appointed as the technical adviser for the European Commission to develop the draft ESRS.  Consequently, in July 2023, the European Commission adopted the delegated act as the first set of ESRS. With the adoption of the ESRS, compani ..read more

The COP series has reached a terminal phase of effectiveness. COP 28 is being prepared in a climate of boycott and mistrust. The process has been able to deliver results. It is now outdated. Nor does any government arrive at the COP with a serious plan to meet the challenges. Procrastination has gone on long enough. It’s now up to local authorities, civil society and businesses to take up the baton and lead the way. Let’s take a look at the role now expected of boards of directors on climate issues. Why COP Series Has Reached a Terminal Phase of Effectiveness I’ve personally been lucky enough ..read more