A recent Bloomberg report discusses the critical need for decision-useful ESG data and the emerging standards designed to address data quality and coverage issues. This advancement is crucial for investors navigating the evolving landscape of sustainable finance.

Brazil's Securities and Exchange Commission (CVM) and Ministry of Finance recently declared that public companies in Brazil will be mandated to report on sustainability and climate-related disclosures starting in 2026. The CVM stated that the new reporting requirements will align with the latest standards released by the International Sustainability Standards Board (ISSB) and will follow a phased approach, commencing with voluntary reporting in 2024.

The Task Force on Climate-Related Disclosures (TCFD) recently published its sixth and final status report, shedding light on both the progress in corporate climate reporting and the persisting data collection challenges. The TCFD, formed in 2017, aimed to enhance consistency and comparability in climate-related financial information among companies.

The week, CDP and the IFRS Foundation announced that CDP will incorporate the International Sustainability Standard Board’s (ISSB) climate-related disclosure standard into its environmental disclosure program. With 18,700 companies, worth half of global market capitalization, disclosing environmental information through CDP in 2022, this integration means there will be a rapid acceleration of early adoption of ISSB climate data disclosure across the global economy.