The Corporate Sustainability Reporting Directive expands the existing sustainability reporting requirements and brings more companies under its scope. By Paul A. Davies, Michael D. Green, and James Bee On 21 June 2022, the European Parliament and European Council reached a provisional political agreement on the terms of the EU’s proposed Corporate Sustainability Reporting Directive (CSRD). The CSRD … Continue Reading
The government also introduced transition plan requirements for companies to meet the UK’s 2050 net zero target. By Paul A. Davies, Michael D. Green, and James Bee On 3 November 2021, the International Financial Reporting Standards (IFRS) Foundation Trustees Chair, Erkki Liikanen, announced the long-awaited formation of the International Sustainability Standards Board (ISSB). The ISSB … Continue Reading
Both bourses are seeking to incorporate the TCFD recommendations into their sustainability reporting regimes, extending a trend of convergence in regional ESG reporting standards. By Paul A. Davies, Timothy Hia, and Sabrina Singh On August 26, 2021, the Singapore Exchange Regulation (SGX RegCo) released a consultation paper proposing amendments to the sustainability reporting (SR) regime … Continue Reading
FCA director highlights areas of concern in relation to ESG reporting and provides recommendations. By Paul A. Davies, Nicola Higgs, Michael D. Green, and Anna Lewis-Martinez Richard Monks, Director of Strategy at the UK Financial Conduct Authority (FCA), recently delivered a speech on the environmental, social, and governance (ESG) reporting regime and how it can … Continue Reading
The Sustainability Accounting Standards Board and the International Integrated Reporting Council merger aims to streamline ESG reporting to improve data for investors. By Paul A. Davies and Michael D. Green On 25 November 2020, the Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC) announced that they are merging into a unified … Continue Reading
The AFD’s new framework aligns with the UN Sustainable Development Goals and the 2030 Agenda. By Paul A. Davies, Michael D. Green, Edward R. Kempson, and Roberto L. Reyes Gaskin The Agence Française de Développement (AFD) has issued a new Sustainable Development Bond Framework (the Framework) that establishes bond eligibility criteria based on fundamental principles, … Continue Reading
Increased pressure from investors and stakeholders for regulators to streamline ESG disclosure standards is starting to bear fruit. By Paul A. Davies and Michael D. Green As 2020 draws to a close, it is clear that standard-setters have made significant progress in harmonising environmental, social, and governance (ESG) disclosure frameworks. The launch of new initiatives … Continue Reading
The UK’s Financial Reporting Council aims to develop a principles-based framework for corporate reporting. By Paul A. Davies and Michael D. Green The UK’s Financial Reporting Council (FRC) has published a discussion paper, “A Matter of Principles — The Future of Corporate Reporting,” that aims to “provide thought leadership for the future of corporate reporting … Continue Reading
The CFA Institute has launched a consultation on ESG disclosure standards for investment products, seeking to enhance transparency and comparability between ESG products. By Paul A. Davies and Michael D. Green On 19 August 2020, the CFA Institute — the largest organisation representing investment professionals — released a consultation concerning ESG disclosures (the Consultation). Recognising … Continue Reading
The group’s recommendations urgently call for the global standardisation of ESG reporting requirements to help “build back better” after COVID-19. By Paul A. Davies and Michael D. Green On 5 August 2020, Global Investors for Sustainable Development (GISD) Alliance released to the European Commission their July 2020 report, titled Renewed, Recharged and Reinforced: Urgent actions … Continue Reading
While the investor community continues to call for more useful ESG disclosures, some regulators try to put on the brakes. By Paul A. Davies, Paul M. Dudek, and Kristina S. Wyatt Calls for Improved ESG Disclosures Many in the investor community have spoken out about their desire for more comparable, decision-useful environmental, social and governance … Continue Reading
Asset owners from Japan, the UK, and California have issued a statement describing their vision of sustainable capital markets. By Paul A. Davies and Michael D. Green In January 2020, BlackRock CEO Larry Fink circulated his annual letter to CEOs in which he noted, “I believe we are on the edge of a fundamental reshaping … Continue Reading
Supply chain risk management and assurance are critical to identify and reduce risks and protect companies from legal and reputational harm. By Sara K. Orr, Kristina S. Wyatt, and Julia S. Waterhous Potential environmental, social, and governance (ESG) issues posed by suppliers in increasingly complex supply chains can increase reputational risks to an organization. Corporate … Continue Reading
Building a sustainable and competitive economy: an examination of proposals to improve ESG disclosures. By James R. Barrett, Paul A. Davies and Kristina S. Wyatt The US House Committee on Financial Services, Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets has held the first ever US Congressional hearing on environmental, social and governance (ESG) issues. … Continue Reading
