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The latest ESG regulations to be brought into effect globally

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A recent study found multiple ESG frameworks and evolving ESG regulations to be one of the biggest challenges in producing ESG reports.

How well a company performs on ESG dimensions has become more important to investors, consumers, employees and business partners, and thus to management. A recent survey found that many perceive multiple of his ESG frameworks and his evolving ESG regulations as one of the biggest challenges in producing ESG reports.

Government authorities around the world have issued various ESG-related regulations related to factors such as climate change, human rights and diversity. Various frameworks have been developed in recent years to standardize the reporting of ESG data. Complying with the law and reporting can be a job in itself. Below is a summary of his latest ESG regulations to be implemented globally.

COP15 reached an international agreement to take action on biodiversity.

Participating governments have adopted the Kunming-Montreal Global Biodiversity Framework, which aims to achieve long-term biodiversity goals for 2050. This framework contains a broad package of 23 action-oriented global targets to be achieved by 2030. Supported by over 150 financial institutionsis a ’30×30′ pledge to effectively protect and manage 30% of the world’s land, inland waters, coasts and oceans by 2030.

Among other pledges, the framework includes reducing the risks posed by pesticides and toxic chemicals in half by 2030, and increasing international financial flows from developed to developing countries by 30 billion by 2030. It includes the goal of raising the dollar and requiring regular oversight by large multinational corporations and financial institutions. We assess and transparently disclose risks, dependencies and impacts on biodiversity across our operations, supply chain, value chain and portfolio.

Also at COP15, the International Sustainability Standards Board (“ISSB”) announced That “sustainability” is a future ISSB general sustainability-related disclosure standard that states, “Over the short, medium and long term, companies sustainably maintain and maintain resources and relationships within their overall business ecosystem. The ability to manage its dependencies and impacts”. ”.

The ISSB aims to ease the burden of disclosing data on Scope 3 greenhouse gas emissions.

of ISSB Announces Countermeasures To facilitate the disclosure of Scope 3 GHG emissions under the Sustainability Disclosure Standard being developed by the ISSB. Disclosure of Scope 3 emissions, which refers to emissions occurring throughout the reporting company’s value chain, is required by the ISSB’s climate-related disclosure standards. However, the ISSB has agreed to set a framework for measuring scope 3 GHG emissions. This allows for estimation and requires the use of reasonable and supportable information available without undue cost or effort. To further assist businesses, the ISSB has also agreed to additional transitional measures. This includes allowing companies to include information that does not match their reporting period when that information comes from companies with a different reporting cycle in their value chain.

The TCFD Status Report shows a dramatic increase in the provision of climate-related disclosures.

The Task Force on Climate-related Financial Disclosures (“TCFD”) Announces 2022 TCFD Status reportcelebrates five years since it first provided a widely used framework for corporate climate disclosure. The Status Report notes that more than 80% of public companies surveyed in 2021 provided information in accordance with at least one of the 11 recommended disclosures, but not all recommended disclosures. Only 4% of reporting companies did. The report also found that more than three-quarters of companies implementing TCFD disclosure requirements do so at the request of investors for information, compared to one-quarter of companies implementing disclosures. has indicated that it does so because of a legal obligation to provide such information.

IFRS Chair: A global sustainability and climate reporting standard will be released in June.

The International Sustainability Standards Board (ISSB) of the IFRS Foundation has release In June of this year, the final version of the first global standard for sustainability and climate-related reporting was released. After adoption, the Board will discuss a range of issues, including reporting on biodiversity, human capital and human rights, and the link between financial reporting and sustainability reporting.

While an increasing number of companies have made net-zero commitments in recent years, the diverse, complex and ever-evolving ESG-related regulations pose extensive compliance challenges. These challenges can exacerbate existing practices into regulatory gaps and non-compliance.

Common challenges include:

  • Confusion over ESG standards due to information overload
  • Lack of ESG professionals with expertise in ESG risks and compliance skill sets to apply compliance frameworks to ESG risks
  • Lack of a comprehensive and consistent approach to ESG issues
  • Difficulties in identifying applicable and appropriate standard-setters, assessments and data providers
  • data quality issues

How can Rio help with ESG reporting?

With the growing burden of evidence to substantiate all reported ESG metrics, Rio helps your business navigate through the evolving environment.

Rio is a technology company that provides organizations and individuals with the tools they need to make informed, impactful and sustainable decisions.

Combine inputs such as waste, utility usage, and transportation data. External data such as current market prices and international VAT rates. and industry expertise.

Our award-winning platform processes this information to deliver trusted, customized and transparent advice at scale and on demand.

ESG reporting is the starting point, not the goal. That’s why Rio makes the transition from disclosure to meaningful action easier and more affordable than ever before.

learn more Get in touch with us about our technology or how Rio can support your ESG initiatives.

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