Australia is making significant progress in its commitment to climate-related financial disclosure, as the Australian Accounting Standards Board (AASB) introduces a new exposure draft outlining proposed standards for reporting climate-related information. These standards align with the sustainability disclosure standards introduced by the IFRS Foundation's International Sustainability Standards Board (ISSB).
In a recent event held in Beijing, the UN Global Compact, the world's most extensive corporate sustainability initiative, introduced groundbreaking guidance and assessment tools to empower companies in advancing sustainable infrastructure within the framework of the Belt and Road Initiative (BRI). The event brought together high-level representatives from government, businesses, and academia.
The European Banking Authority (EBA), a European Union banking supervisor, has unveiled a new report focusing on the integration of environmental and social risks within its prudential supervision framework for banks and investment firms. This initiative aims to accelerate the incorporation of these risks into the Pillar 1 framework, which outlines banks' minimum capital requirements.
More than two-thirds of corporate boards in the United States struggle to grasp the intricacies of environmental, social, and governance (ESG) risks that may impact their companies, according to the Annual Corporate Directors Survey recently released by global professional services firm PwC. The study encompassed insights from over 600 directors of public companies across more than 12 industries, with 73% of those surveyed representing companies boasting revenues exceeding $1 billion.
On October 12, 2023, the Competition and Markets Authority (CMA) took a significant step in the realm of environmental sustainability by publishing its "Guidance on the application of Chapter I of the Competition Act 1998 to environmental sustainability agreements," commonly referred to as the 'CMA's environmental sustainability guidance.' This directive marks a substantial stride toward fostering sustainability in economic activities and partnerships.
The European Council has made a significant stride towards achieving its ambitious climate goals with the adoption of two critical pieces of legislation. These new laws form part of the European Commission's "Fit for 55" roadmap, a strategy designed to reduce greenhouse gas emissions by 55% by 2030 compared to 1990 levels. The recently approved directives aim to nearly double the share of renewable energy consumption within the EU by 2030 and accelerate the adoption of sustainable aviation fuel (SAF) to decarbonize the aviation sector.
A recent analysis conducted by ESG data firm RepRisk has unveiled a troubling trend in the world of finance. The report indicates that financial institutions have contributed significantly to a staggering 70% increase in climate-related greenwashing incidents over the past year. Moreover, the study reveals that the issue of greenwashing is growing across industries.