ESG

The Canadian Securities Administrators (CSA) announced recently that it’s temporarily pressing pause on two highly anticipated projects: the development of mandatory climate-related disclosure rules and changes to diversity-related disclosure requirements. The decision, which comes at a time of mounting geopolitical and economic uncertainty, signals the CSA’s focus on supporting Canadian businesses as they navigate the fast-moving, sometimes turbulent, regulatory landscape.

In a move that will surely be welcomed by businesses throughout the European Union (EU), the European Commission has announced new measures to simplify the implementation of the EU Deforestation Regulation (EUDR), reducing the burden on operators and traders while maintaining the regulation's environmental goals. As the EUDR is set to fully come into force at the end of this year, these changes aim to make compliance easier without sacrificing the core focus: tackling deforestation, climate change, and biodiversity loss.

The European Parliament recently voted in favor of giving businesses a little more breathing room when it comes to complying with the new sustainability and due diligence rules. With an overwhelming vote of 531 for, 69 against, and 17 abstentions, MEPs backed the European Commission's proposal to delay the deadlines for these significant regulations. The intended goal? To simplify the process for businesses and help the EU stay competitive on the global stage. It’s part of the broader “Omnibus I” simplification package, which aims to reduce the red tape businesses face while still driving progress on important issues like human rights and environmental impact.

The Australian Securities and Investments Commission (ASIC) has recently dropped a new set of guidelines that will help companies navigate the complexities of climate-related financial reporting. The release of Regulatory Guide 280 comes after a deep dive into industry feedback and offers a clearer picture of how companies, superannuation funds, and investment vehicles should approach sustainability disclosures under the Corporations Act 2001.

The Office of the Comptroller of the Currency (OCC) has announced its withdrawal from the interagency principles for climate-related financial risk management for large financial institutions, signaling a shift in its regulatory approach.

It’s no secret that banks are under increasing pressure to understand and manage their environmental, social, and governance (ESG) risks, and Banca d’Italia’s latest report on ESG disclosures shows just how challenging that can be. As the financial world moves toward a more sustainable future, Italian and European banks are slowly but surely stepping up to the plate—despite facing significant hurdles. Banca d’Italia’s Notes on Financial Stability and Supervision No. 45 delves into the current state of ESG risk assessment, tracking the progress these banks have made while highlighting the areas still in need of improvement.