A recent KPMG study reveals that 61% of investors in the European Market for Alternative Investment Funds (EMA) prioritize ESG due diligence, driven by the potential for monetary gains.

The European Commission has issued warnings to 17 EU member states for failing to implement the Corporate Sustainability Reporting Directive (CSRD) by the July 2024 deadline. This directive aims to enhance transparency and accountability in corporate sustainability reporting across the EU.

The IFRS Foundation has taken a significant step in promoting sustainability reporting by launching a comprehensive guide for companies. This guide is designed to help businesses voluntarily adopt the International Sustainability Standards Board (ISSB) Sustainability Reporting Standards, ensuring they can meet the growing investor demand for transparent and comparable sustainability information.

Deloitte’s 2024 CxO Sustainability Report reveals a significant increase in sustainability investments among global executives. The report highlights the growing importance of sustainability in business strategies and the innovative approaches companies are adopting to address climate change.

A recent insight from EY outlines how European boards are navigating a monumental shift in corporate reporting due to the Corporate Sustainability Reporting Directive (CSRD). This directive offers a unique opportunity to align corporate strategy with sustainability goals, driving long-term value creation.

The European Commission (EC) has released a set of frequently asked questions (FAQs) to aid in the implementation of the Corporate Sustainability Reporting Directive (CSRD). These FAQs aim to clarify various aspects of the CSRD and the first set of the European Sustainability Reporting Standards (ESRSs), ensuring stakeholders can comply with regulatory requirements effectively.

The International Accounting Standards Board (IASB) has recently published a consultation document aimed at helping companies improve their reporting on climate-related risks and other uncertainties. This initiative responds to growing investor demand for clearer and more consistent climate-related information in financial statements.

PWC recently released its third annual “Global Investors Survey”. The report surveyed 345 investors and also completed in-depth interviews with 15 investment professionals across 30 countries.

In a recent development, 40 Members of the European Parliament (MEPs) proposed a motion to reject the European Sustainability Reporting Standards (ESRS). These MEPs advocated for simpler, less burdensome sustainability disclosure rules. The Parliament ultimately voted against this motion, with 359 votes against out of the 631 MEPs. On the same day however, the European Commission did announce plans to delay the ESRS implementation timeline.

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.

A recent KPMG survey found that just 25% of surveyed business leaders express confidence in meeting future ESG reporting requirements, despite an increasing reliance on ESG strategies for added business value. The "KPMG U.S. ESG Survey" involved over 200 business leaders responsible for their companies' ESG strategies, primarily from North American companies with revenue exceeding $1 billion across diverse industries.

Today, in an effort to further enhance sustainability practices the European Commission has proposed a new regulation that seeks to foster greater transparency and regulatory scrutiny in the Environmental, Social, and Governance (ESG) ratings industry. This development marks a crucial step in ensuring accurate and reliable ESG information for investors, companies, and stakeholders. The proposed regulation aims to address concerns surrounding the quality and reliability of ESG ratings, which play a pivotal role in guiding investment decisions and corporate sustainability strategies. By subjecting ESG ratings providers to greater regulatory scrutiny, the European Commission hopes to establish a robust framework that instills credibility, accountability, and transparency in the industry.

Yesterday, The European Securities and Market Authority (ESMA) published their final report on the European Union Carbon Market. Key findings from the ESMA website note that while there weren’t any major deficiencies found, there are a few policy recommendations that to no surprise, end up centralized around transparency and monitoring.

Yesterday, The U.S. Securities and Exchange Commission (SEC) launched their proposal of a new set of rules to enhance and standardize climate-related disclosures for investors.