ESG

The Sierra Club and the Sierra Club Foundation, represented by Earthjustice, have taken legal action against the Securities and Exchange Commission (SEC) over its recently finalized rule on climate risk disclosure. The lawsuit, filed in the U.S. Court of Appeals for the D.C. Circuit, contends that the SEC's final rule falls short of adequately addressing climate-related risks faced by public companies, consequently failing to provide investors with necessary information.

In a groundbreaking move, the U.S. Securities and Exchange Commission (SEC) has officially passed its first-ever climate disclosure rules, a development that promises to reshape corporate reporting and shed light on the environmental impact of publicly traded companies. The decision, reached in a Wednesday vote, is seen as a legacy-defining effort for SEC Chair Gary Gensler.

A recent Bloomberg survey of approximately 200 European financial market participants has shed light on a mounting challenge in the financial sector: the management of the ever-expanding volume of Environmental, Social, and Governance (ESG) data. The survey, conducted throughout 2023 and involving respondents from major European financial hubs including London, Stockholm, Geneva, Amsterdam, Frankfurt, Paris, and Milan, delved into key aspects of ESG data prioritization, challenges, and current management practices.

In a significant move towards environmental protection, the European Parliament has approved a groundbreaking directive on environmental crimes and corresponding sanctions. The directive, adopted on Tuesday with overwhelming support, introduces an expanded list of criminal offenses and penalties aimed at combatting illegal practices detrimental to the environment.

The Business Council of Australia (BCA) has voiced its support for a one-year delay in the implementation of mandatory climate reporting requirements. The council emphasizes the importance of continuous improvement in the quality of climate-related financial disclosures, aligning closely with international standards.

In anticipation of the first publication of transition plans mandated by the European directive on Corporate Sustainability Reporting (CSRD), the Autorité des marchés financiers (AMF), the French Financial Markets Authority, has published an educational guide. Developed by its Climate and Sustainable Finance Commission (CCFD), the guide delves into the intricacies of companies' climate transition plans, emphasizing the significance of short- and medium-term targets, resource allocation, and governance.

The European Council and Parliament have reached a provisional agreement on a groundbreaking proposal for a regulation governing environmental, social, and governance (ESG) rating activities. This regulatory initiative aims to bolster investor confidence in sustainable products, recognizing the crucial role ESG ratings play in shaping capital markets and fostering trust in sustainable investments.