ESG

In a victory for the Australian Securities and Investments Commission (ASIC), the Federal Court has imposed a $11.3 million ($7.4 million USD) penalty on Mercer Superannuation (Australia) Limited for misleading statements regarding the sustainability of its superannuation investment options. This ruling marks a pivotal moment as it is the first greenwashing case brought before the court by ASIC, setting a precedent for the financial services industry in Australia.

The International Accounting Standards Board (IASB) has announced two significant proposals aimed at improving financial reporting standards, particularly in relation to climate-related disclosures and reporting requirements for subsidiaries.

ESG (Environmental, Social & Governance) pressure is mounting from multiple fronts for organizations to implement ESG reporting. ESG has the momentum and force to become a significant measurement of an organization's integrity.

The European Securities and Markets Authority (ESMA) published an Opinion outlining its long-term vision for improving the EU's Sustainable Finance Regulatory Framework. This comprehensive document aims to enhance the framework's usability and coherence, focusing on facilitating investors' sustainable investment journey while supporting the effective functioning of the entire Sustainable Investment Value Chain (SIVC).

Deloitte's 2024 Sustainability Action Report, released on July 18, 2024, unveils a landscape of rapid evolution and strategic shifts in corporate sustainability practices across the United States. The survey, which polled 300 senior business leaders, highlights significant progress in Environmental, Social, and Governance (ESG) integration, while also revealing persistent challenges in data quality and reporting.

The U.S. Justice Department and Environmental Protection Agency (EPA) have reached a $241.5 million settlement with Marathon Oil Company over Clean Air Act violations in North Dakota. The agreement, announced on Thursday, July 11, 2024, marks the largest civil penalty ever imposed for Clean Air Act violations at stationary sources.

The European Securities and Markets Authority (ESMA) has taken steps to enhance and standardize sustainability reporting across the European Union. On July 5, 2024, ESMA released two key documents aimed at supporting the consistent application and supervision of sustainability reporting requirements.