ESG

A federal judge in California has recently given the green light for the state’s sweeping carbon disclosure mandates to proceed, at least for now. U.S. District Judge Otis Wright II’s decision keeps California’s new climate disclosure laws on track, though he left the door open for future challenges. Wright’s ruling sidestepped a definitive answer on whether the laws violate companies’ First Amendment rights by forcing them to disclose emissions and climate risks, instead calling for more information to fully assess these questions.

Allianz Trade announced last week the launch of Surety Green2Green, a new solution aimed at accelerating the transition to sustainability within the global economy. Allianz Trade, an international insurance provider and subsidiary of Allianz SE, offers a range of services, including trade credit insurance, debt collection, surety bonds, business fraud insurance, and political risk protection. Allianz SE, headquartered in Germany, is one of the world’s largest financial services providers and the largest insurer in Europe. Allianz Trade’s mission is to empower clients to trade with confidence by ensuring payment security and providing protection against bad debt.

The European Banking Authority (EBA) has just dropped a comprehensive look into how financial firms are handling Principal Adverse Impact (PAI) disclosures under the Sustainable Finance Disclosure Regulation (SFDR). This 2024 report shows progress on some fronts but also highlights areas where firms are falling short on compliance and best practices. For risk and compliance pros, this report sheds light on what firms are up against in meeting sustainability reporting standards and offers practical insights into how compliance frameworks are shifting to keep up with rising regulatory demands.

As the call for transparency in environmental, social, and governance (ESG) practices intensifies, a recent survey by Ernst & Young (EY) uncovers a troubling reality: both investors and finance leaders are increasingly skeptical about the credibility of nonfinancial reporting. This growing skepticism, exacerbated by perceptions of greenwashing and inconsistent data, highlights the critical role that ESG and governance, risk, and compliance (GRC) professionals must play in elevating reporting standards.

In a world where sustainability is no longer just a buzzword, asset managers find themselves facing complex, often thorny challenges around environmental, social, and governance (ESG) data. The Dutch Authority for the Financial Markets (AFM) recently put this into focus with an in-depth study, pulling back the curtain on the hurdles asset managers face in risk management and compliance tied to ESG.

The International Chamber of Commerce (ICC) unveiled its new Principles for Sustainable Trade Finance (PSTF) at Sibos 2024 in Beijing in effort to fight against greenwashing in global trade. The framework, developed in collaboration with leading financial institutions and Boston Consulting Group (BCG), addresses the critical challenge of evaluating sustainability in trade finance products.

The Securities and Exchange Commission (SEC) has taken action against New York-based investment adviser WisdomTree Asset Management Inc. for making false statements and failing to comply with its own investment criteria for ESG-marketed funds. The charges, announced on October 21, 2024, highlight the growing scrutiny of environmental, social, and governance (ESG) investment practices in the financial industry.