ESG

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.

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.