ESG

The European Commission has officially rolled out two comprehensive legislative packages - Omnibus I and Omnibus II - aimed at reducing the regulatory burden on businesses while advancing sustainability efforts and unlocking new investment opportunities. These changes represent a significant shift for businesses across the EU, particularly small and medium-sized enterprises (SMEs), by simplifying compliance with sustainability reporting, due diligence, and carbon emissions rules.

In a spirited effort to demystify the world of environmental, social, and governance (ESG) risks, the European Banking Authority (EBA) has unveiled a report that reads like both a celebration and a call to action. Amid the complexities of modern finance, the report reveals tangible progress in making ESG data more available and accessible, yet it reminds us that the puzzle is far from complete.

The battle over the SEC’s climate disclosure rule has entered a new phase, and the winds are shifting—this time, away from the aggressive push for federal mandates. On February 11, Acting SEC Chair Mark Uyeda signaled a significant change by requesting that a federal appeals court delay oral arguments in the ongoing lawsuit against the rule. This request is just the latest in a series of developments that point to a deepening uncertainty about the future of the rule, which mandates that companies disclose climate-related risks to investors.

Hong Kong’s financial ecosystem is getting a major sustainability makeover. The Green and Sustainable Finance Cross-Agency Steering Group (let’s call it the Steering Group for short) has set its sights on ambitious goals for 2025, and today, we’re getting a peek into the game plan.

28 ESG evaluation and data providers have now formally endorsed the "Code of Conduct for ESG Evaluation and Data Providers" as of December 31, 2024. This voluntary code, introduced by the Japanese Financial Services Agency (FSA) on December 15, 2022, is part of a broader effort to standardize and improve the transparency of ESG data and evaluation practices across the industry.

Environmental, Social, and Governance (ESG) has been generating immense pressure on organizations across various industries and around the globe in recent years. Corporate investors are now making capital investment decisions based on a company’s ESG commitments, metrics, and ratings. Legislators and regulators worldwide are introducing regulations that focus on both the broad scope of ESG and its specific aspects (e.g., modern slavery, carbon emissions). Potential employees are choosing workplaces aligned with their values, not just their benefits. Similarly, customers are favoring products and services that reflect their principles. ESG has captured the attention of every level of an organization, from the boardroom to the operational frontlines.

Today, two heavyweights in the world of professional standards, the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA), rolled out a game-changer for sustainability reporting and assurance. The duo announced the launch of two new standards—IAASB’s ISSA 5000 and IESBA’s IESSA—aimed squarely at making sustainability reporting more trustworthy, ethical, and transparent.