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.
Puma, the sportswear brand, has voiced its concerns faced in meeting the new European Union (EU) sustainability reporting requirements. The company's head of sustainability, Stefan Seidel, discussed these challenges at the Reuters IMPACT conference in London, highlighting the growing regulatory landscape in the EU.
A coalition of investors wielding a combined asset value exceeding $1 trillion has made a resounding call to the International Sustainability Standards Board (ISSB), urging it to forge global reporting standards for companies to disclose information related to human capital and human rights. The collective appeal comes at a pivotal juncture as the world grapples with defining the parameters of responsible business practices amid evolving global challenges.