ESG

ESG (Environmental, Social, and Governance) considerations have rapidly emerged as a major focus area for procurement executives worldwide, soaring to the number two spot in their list of top priorities, according to a recent survey conducted by global professional services firm Deloitte. This significant rise in ESG prioritization comes as companies face mounting regulatory and stakeholder pressures to address sustainability factors across their operations and supply chains.

The European Commission has taken a significant stride towards a sustainable EU economy by adopting the European Sustainability Reporting Standards (ESRS) for all companies subject to the Corporate Sustainability Reporting Directive (CSRD). These standards are set to play a crucial role in the EU's sustainable finance agenda, promoting transparency and enabling investors to assess the sustainability impact of their investments.

Regulators from the world's leading stock exchanges have given their official support to the international climate-reporting standards framework, providing momentum to establish the rules as the global baseline. The International Organization of Securities Commissions (Iosco) endorsed the International Sustainability Standards Board's (ISSB) recently published climate reporting standard, which includes requirements for reporting Scope 3 emissions in the supply chain and material information on climate-related risks and opportunities.

The European Council has announced the adoption of a series of laws and regulations to achieve the EU's ambitious climate goals, including measures to reduce energy consumption, promote alternative fuels infrastructure, and curb emissions in the maritime transport sector. These actions represent significant steps towards realizing the European Commission's "Fit for 55" roadmap, which seeks to cut greenhouse gas emissions by 55% by 2030 compared to 1990 levels.

In a significant move towards ensuring transparency and integrity in sustainable finance, the European Securities and Markets Authority (ESMA) has initiated a comprehensive Common Supervisory Action (CSA) in collaboration with EU National Competent Authorities (NCAs). This joint effort aims to evaluate sustainability-related disclosures and the integration of sustainability risks within the investment fund sector. With a focus on asset managers operating within the European Union, the CSA is set to have a far-reaching impact on the enforcement of ESG (Environmental, Social, and Governance) regulations.

The U.S. Commodity Futures Trading Commission (CFTC) has recently taken a proactive step in addressing emerging risks by establishing a dedicated task force focused on combating cyber threats and environmental, social, and governance (ESG) fraud in financial markets. With the rise of digitalization and increasing investor interest in sustainable investments, theCFTC recognizes the need to protect market participants and uphold market integrity. This article explores the CFTC's new task force, its objectives, and its significance in the context of cybersecurity and ESG-related challenges.

ESG (environmental, social, and governance) has become a catalyst for driving organizational transformation and long-term sustainability. As an audience already familiar with the concept of ESG, let's explore the latest developments and trends that are shaping this transformative framework