Reflecting on headlines from the past month, there was a stark contrast between litigation in the United States aiming to strike down the climate disclosure rule and another ruling from Europe’s top court agreeing with 2,000 Swiss women that governments have human rights obligations to combat the adverse effects of climate change. Against this backdrop, global regulators must steadfastly maintain the founding principles of sustainability regulation. Despite Europe’s exemplary track record in terms of shaping sustainability disclosure, there remain some cases, such the EU’s Corporate Sustainabi ..read more

On March 21st, 2022, the United States Securities and Exchange Commission (SEC) released a draft rule for the Enhancement and Standardization of Climate-Related Disclosures for Investors. The passing of the SEC climate rule on March 6th, 2024, is a landmark moment in U.S. climate policy and sets a precedent for future legislation on sustainability-related financial reporting in the U.S. But what does this mean for companies and investors?   To read the full report, click here ..read more

The number of climate-related regulations and frameworks is increasing every day. At the same time, corporate disclosure of greenhouse gas (GHG) emissions, particularly those in line with the Greenhouse Gas Protocol (GHGP), remains poor. Of more than 6,200 companies tracked by ESG Book, less than 50% report Scope 1 emissions in line with the GHGP. Find out how ESG Book’s newly upgraded Estimated Emissions Model predicts emissions more accurately across each scope.   To read the full report, click here ..read more

This month’s Policy Digest covers both triumphs and setbacks in the shaping of sustainability reporting standards and regulations. We start with the positive – the International Sustainability Standards Board (ISSB) standards continue to be adopted by countries across the globe. On the back of this policy momentum, the ISSB has released a jurisdictional adoption guide for countries, acknowledging the specificity of use cases and local needs. In Europe, a make-or-break vote on the EU Corporate Sustainability Due Diligence Directive (CSDDD) was postponed once again. In effect, this means that un ..read more

As organizations gear up for a fresh reporting year, regulators and standard-setting bodies are actively working to provide enhanced guidelines, with the aim of facilitating the disclosure of usable sustainability information. Early this year, the Global Reporting Iniative (GRI) announced a series of updates including a new Biodiversity Standard, Mining Sector Standard and interoperability considerations for GHG emissions for companies applying GRI and ISSB standards. These initiatives aim to ease the reporting burden for entities and offer comprehensive guidance to improve the availability of ..read more

In this new ESG Quick Takes episode, host Isabel Verkes speaks to Yale University’s Todd Cort on the links between sustainability metrics and financial performance. Despite various studies over the past decade showing a correlation between financial returns and ESG performance, do we have sufficient data showing the causal links explaining that relationship? Dr. Cort discusses some of the challenges around ESG and financial materiality, and how the debate is continuing to evolve. Faculty Director of Yale University’s sustainability program, Dr. Cort works at the intersection of sustainabili ..read more

The sustainable finance policy and regulation landscape continued to evolve and mature at the end of 2023 and the hope is that policymakers double down on the impetus to bolster sustainable investment this year.  A new year of sustainability reporting will require global regulators to confront challenges relating to sustainability data, making the release of International Capital Markets Association’s (ICMA) code of conduct for ESG ratings and data providers a timely policy intervention.  Europe is one jurisdiction where formal regulation is progressing on this front. In December, le ..read more

Last week (14th December), ESG Book submitted its response to the latest EU Commission Targeted consultation on the implementation of the Sustainable Finance Disclosures Regulation (SFDR), addressing concerns about the regulation’s current ambiguity and lack of clarity in defining ‘sustainable investment.’ ESG Book’s response underscores the importance of clarity, standardization, and collaboration in implementing SFDR to enhance transparency and comparability in sustainable finance reporting. To read the full article, click here ..read more

In this month’s Policy Digest, we dive into various developments that reflect the evolving status of the Sustainable Finance Disclosure Regulation (SFDR). Most recently, the European Supervisory Authorities’ (ESAs) Final Report on Regulatory Technical Standards (RTS) included new and updated indicators for reporting entities under SFDR. Meanwhile, the European Securities and Markets Authority (ESMA) issued high-level guidance on the interpretation of key concepts and definitions embedded within the sustainable finance framework. In the banking and financial services sector, the European Bankin ..read more

This year, 2023, is considered by many to be the year of generative AI. It is also the year of ground-breaking ESG regulatory announcements impacting corporations, including the launch of the long-awaited global IFRS ISSB standards and the signing of two pioneering California bills, SB-253 and SB-261. In this blog post, ESG Book and C3 AI provide a roundup of key 2023 ESG regulatory announcements worldwide and examples of AI use cases that corporations can leverage to facilitate compliance and generate new sources of strategic insight, including:  1. Drafting questionnaire responses and n ..read more