EU Parliament_edited.jpg

ESG Regulation Hub

Is your company ready for developments in ESG regulation? Build your knowledge of the most relevant legislative changes to corporate ESG reporting.

Flags image.jpg

Be prepared for ESG reporting rules from the EU, UK & US
 

As regulators begin to develop sustainability disclosure rules for companies and seek to reduce greenwashing, companies need to be prepared for upcoming changes. The global reach of ESG disclosure requirements will mean that companies have to keep a watchful eye on an increasing list of regulatory schemes. 

The EU is developing a corporate sustainability reporting standard (CSRD)

The principles-based Non-Financial Reporting Directive (NFRD) did not meet the challenge of producing comparable data for investors or creating a level playing field for companies. The EU is currently developing a more ambitious reporting standard that will increase the scope of company reporting.

Learn more (blogpost).

Sustainability investing rules (SFDR) places increased data demand on companies 

Level I of the SFDR has already implemented rules for investor disclosure relating to the due diligence of sustainability risks and sustainability-related labelling of funds. Investors will have to disclose investee company data on a range of indicators according to Level II. Learn more (snapshot).

The EU Taxonomy seeks to define & channel investments to 'green' activities

The EU Taxonomy is a 'green' industry classification mechanism that aims to help direct more capital and investments towards activities that promote 6 key climate and environmental objectives. Investors & companies will be expected to disclose their 'taxonomy alignment' as a % of turnover or investments. Learn more (snapshot).

Movements from the US towards climate-related risk reporting

After a change in administration, the White House is pushing federal agencies, including the Securities and Exchange Commission, to explore and develop climate-related risk disclosure requirements. Learn more (blogpost).

These regulations, even the ones that are aimed at investors, will impact companies in Europe and the US. Contact us for help and get in touch.

Disclaimer: Leaders Arena is not engaged in rendering legal, accounting, tax, investment or financial advice. As such, this content should not be used as a substitute for consultation with professional accounting, tax, legal, financial or other specialists advisers.

ESG Definition
ESG Definition

Regulation Snapshots for Companies

CSRD screenshot.PNG

CSRD

SFDR snapshot.PNG

SFDR

EU Taxonomy snapshot.PNG

EU Taxonomy

ESG Definition