ESG

In a groundbreaking move, the European Union (EU) has approved the adoption of a new voluntary standard for the use of a "European Green Bond" label, marking it as the world's first of its kind. This regulation, adopted with an overwhelming majority of 418 votes in favor, 79 against, and 72 abstentions, establishes uniform standards for issuers seeking to designate their bonds as 'European green bonds' or 'EuGB,' offering clarity and credibility in the burgeoning green finance sector.

In the ever-evolving landscape of corporate responsibility, organizations worldwide are facing heightened expectations regarding their environmental and social impact. A recent survey from McKinsey and Co. found that a significant majority (66%) of consumers incorporate sustainability into their purchasing decisions.revealed that a substantial 66% of consumers now factor sustainability into their purchasing decisions. Additionally, the 2022 global investor survey by PwC identified reducing greenhouse emissions and ensuring a responsible supply chain as the top three priorities for investors. In light of these trends, it has become imperative for businesses of all sizes to ensure that their ESG (Environmental, Social, and Governance) and supply chain standards are not only current but also aligned with the evolving expectations of the public and investors.

Awareness of climate change, global warming, and environmental concerns has been growing over recent decades, but the last five years has seen an increase in lawsuits related to these concerns. These cases have reached an all time high in the last year, and along with that growth has been an introduction of the next generation's alarm of the global environment they are inheriting.

In a world where the watchful eyes of governments and the discerning gaze of the public are ever-focused on corporate conduct, organizations find themselves under greater pressure than ever to embrace Environmental, Social, and Governance (ESG) responsibility. Unfortunately, a recent survey conducted jointly by the Wall Street Journal and the National Association of Corporate Directors reveals that many organizations are lagging behind in establishing effective ESG policies.

In a move aimed at advancing diversity and inclusion in the financial services sector, the UK's Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have proposed a series of measures to promote a more inclusive culture within regulated firms. These measures not only emphasize the importance of diversity but also seek to improve the safety, soundness, and overall effectiveness of financial institutions while better addressing diverse consumer needs.

California's state Senate has approved a landmark bill that would require large companies to disclose their carbon footprints. The legislation is now awaiting Governor Gavin Newsom's decision, with a deadline of October 14th for him to sign it into law. This move aims to position California ahead of the federal government in establishing corporate climate regulations.

The European Securities and Markets Authority (ESMA) has recently issued a stark warning against corporate greenwashing in the wake of increased investments in biodiversity funds. ESMA, the European Union's securities regulator, has detected a notable rise in investments into biodiversity funds, which it highlights in its recent market report. In response, it calls for greater industry oversight to prevent potential greenwashing.