Matthew Bell

Transition Plan Taskforce disbands, passes to IFRS The UK-led Transition Plan Taskforce (TPT), which produced the influential TPT recommendations for companies to use to develop climate transition plans, has issued its final report and disbanded. The IFRS Foundation, parent body of the International Sustainability Standards Board (ISSB), has taken over responsibility of the TPT recommendations. It’s expected that the IFRS will officially endorse the TPT’s materials for use in the creation of IFRS-aligned transition plans, meaning that using this framework to develop your own transition plan is a safe move. By the numbers: According to CDP, 5,900 companies reported having a transition plan in 2023, a sharp rise from 4,100 in 2022—a 44% increase. Very few, however, have been published, and fewer still are so far TPT-aligned. "UK businesses, take note: The UK government is expected to require transition plans for both listed and large private companies, with an announcement likely in Q1 2025," says Sillion CEO Tom Rayner. “They involve a lot of work, so get moving.” We’re here to help. Get in touch at [email protected] 🔗 Read the TPT’s final report here: https://lnkd.in/dTw42XRJ #TPT #TransitionPlans #IFRS #Sustainability

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IFRS Foundation and EFRAG Publish Interoperability Guidance to Align International Sustainability Standards Board (ISSB) and ESRS Standards Mairead McGuinness Patrick de Cambourg Chiara Del Prete Emmanuel Faber Sue Lloyd #Sustainability #Standards #Reporting #Disclosures

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🌿 Exciting news for sustainability reporting! 🌿 GRI and TNFD have teamed up to make reporting on biodiversity easier. They’ve released a new interoperability mapping resource that aligns the TNFD Disclosure Recommendations with the GRI Standards. This means: - Consistent Concepts: Both use the same nature-related definitions and drivers of biodiversity loss. - Materiality Approach: GRI’s impact-focused materiality is integrated into TNFD’s flexible approach. - Aligned Metrics: Strong consistency between TNFD core metrics and GRI Standards. This collaboration simplifies reporting for thousands of organizations worldwide, ensuring transparent and accountable disclosures. useful link: https://lnkd.in/gsm7N2mA 🌍📊 #Sustainability #Biodiversity #GRI #TNFD #Reporting

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ESG Ratings Providers Government response to ESG ratings providers condoc published. Only a handful of responses from civil society. Here is FIC's: https://lnkd.in/e76YMTmV. Good to see commitment to regulate. But several problems. 'The overall process of....commencing the ESG ratings regulatory regime is expected to take approximately four years'. Four years! In meantime, we have FCA's voluntary code developed by a group dominated by finance representatives. Gov not regulating ESG data nor it seems the models that determine ratings. V risky. We could be in a position where ESG ratings providers comply with new reg standards but the 'products' are still v misleading. The idea that 'competition' will drive up the quality of models and data is rather hopeful. Do policymakers really think that insurers,banks,asset managers will choose the most robust ratings models or that pension trustees/retail investors will have enough nous to ensure most robust models are used? To hold finance to account for harming people and planet, we need reliable foundational data eg. emissions data to allow independent analysts to build up composite models which provide an objective assessment of the degree of climate harm contained within financial portfolios. Ratings should be built on robust definitions and hard data, not 'qualitative' assessments of the 'intentions' of financial institutions or transition plans. Narrative based approaches allow for obfuscation. See: https://lnkd.in/erxdR6rs UK is bascially adopting IOSCO approach to assessment which is far too subjective, narrative and qualitative based. So, unless civil society can find a way to create truly objective ratings based on, say, emissions data this new regime is unlikely to do much to hold the City to account for enabling climate harm.  The S part of ESG has its own issues. The current approach promoted by advocates of 'Impact finance' sets a v low bar. See: https://lnkd.in/dHsh6Am2 And Gov response has obligatory 'Growth is the number one mission of this government' statement. There are 2 ways to be competitive and promote growth - i. robust regulation to ensure quality and trust; or ii. weak regulation to attract business (regulatory arbitrage) and reduce costs in short term. Which path will Gov and FCA (under real pressure to promote the City) choose? #ESG #financialregulation #greenwashing #impactwashing https://lnkd.in/erYrPUXa

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Fantastic news! The Global Reporting Initiative (GRI) and IFRS Foundation have announced their collaboration to deliver full interoperability, enabling seamless sustainability reporting! In response to market demand, the two organisations will: ✅ Work together to optimise how GRI and the International Sustainability Standards Board (ISSB) can be used together. ✅ Facilitate reporting on an organisation's impacts, risks and opportunities. ✅ Jointly identify and align common disclosures for both thematic and sector-based standard setting. This collaboration seeks to provide a seamless, global and comprehensive sustainability reporting system for companies looking to meet the information needs of both investors and a broader range of stakeholders. Find out more here: https://lnkd.in/esV8RMVr Eelco van der Enden, Carol Adams, Erkki Liikanen, Emmanuel Faber #esg #sustainability #esgreporting #sustainabilityreporting #collaboration

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Global Reporting Initiative (GRI) and IFRS Foundation collaboration to deliver full interoperability that enables seamless sustainability reporting.   In response to market demand, the two organisations will:  ✅ Work together to optimise how GRI and #ISSB Standards can be used together. ✅ Facilitate reporting on an organisation's impacts, risks and opportunities, including risks that arise from the organisation's impacts. ✅ Jointly identify and align common disclosures that address information needs under the distinct scopes and purposes of their respective standards, for both thematic and sector-based standard setting. Find out more 👉 https://lnkd.in/esV8RMVr #IFRSsustainability #ISSBstandards

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Seems that #IFRS S3 and S4 are coming in next 1-2 years... It is good that #ISSB has integrated many of sustainability reporting frameworks. Business is looking for a unified approach, avoiding a necessity to follow a soup of various different frameworks and standards. Regulators in the Central Asia and Caucasus region, it may be a right momentum to think about moving towards #ISSB standards now. Making anpublic position of that movement and development of a roadmap woth clear deadlines - businesses will thank you for that. And EY is here to help. #ESG #climatechange

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❓ How can businesses use enhanced risk assessments to create climate, nature & equity solutions that promote #sustainability and boost performance across operations & value chains?  📈 Our latest report on how to assess interconnected risks in food and retail, developed using KPMG’s Dynamic Risk Assessment methodology, provides insights for companies in any sector into the complexity and connectivity of risks and key areas of intervention & #RiskManagement to deliver long-term performance. 💡 We collected key learnings & themes from the enhanced risk assessment that may inform sustainable business strategies in all sectors and for different risk types: https://lnkd.in/e4MAsrDw 🌿Let's leverage enhanced risk assessments to navigate complexity, mitigate risks & drive sustainable change.  

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Great news for stakeholders and the #Africa business enterprises concerned about #interoperability of #GRI and #ISSB standards. Whether a multi-stakeholder or investor focus, aspiring entities may now begin their reporting journey towards #sustainabledevelopment

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“Just transition is relevant for [companies] to consider in relation to disclosures on transition plans for climate change mitigation.” Yes, well said European Financial Reporting Advisory Group - we agree! Check out EFRAG's newly released draft implementation guidance related to transition plans for climate change mitigation. This guidance, when finalised, will provide support for companies implementing transition plans as mandated by the European Sustainability Reporting Standards (ESRS). Flip to page 15 for the report's section on just transition in the context of transition plans 📖 Link to report: https://lnkd.in/emvahmHp

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𝐁𝐢𝐨𝐝𝐢𝐯𝐞𝐫𝐬𝐢𝐭𝐲 𝐚𝐧𝐝 𝐇𝐮𝐦𝐚𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝑠𝑢𝑠𝑡𝑎𝑖𝑛𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑟𝑒𝑝𝑜𝑟𝑡𝑖𝑛𝑔 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑𝑠 𝑎𝑟𝑒 𝑜𝑛 𝑡ℎ𝑒 ℎ𝑜𝑟𝑖𝑧𝑜𝑛! Yesterday, the International Sustainability Standards Board (ISSB) announced the commencement of projects to research disclosure about sustainability risks and opportunities associated with: 🌱 Biodiversity, ecosystems and ecosystem services; and 🌱 Human capital. In response to investor needs for a global baseline in sustainability reporting, the ISSB issued these two inaugural standards in June 2023: ✅ IFRS S1 - General Requirements for Disclosure of Sustainability-related Financial Information ✅ IFRS S2 - Climate-related Disclosures There is currently one specific IFRS Sustainability Disclosure Standard i.e. the Climate Standard or IFRS S2. With this week's announcement, we should expect the issuance of additional specific standards in the near future from these commenced research projects. According to the ISSB, both research projects will examine which disclosures investors require to be able to assess sustainability-related risks and opportunities in these areas.  Keep in mind that such disclosures are already required by the General Standard or IFRS S1, if they relate to material information about sustainability-related risks and opportunities. The ISSB states that it will build on existing initiatives and standards already under its purview i.e. the SASB Standards and CDSB guidance and, additionally, relevant aspects of the work of the Task Force on Nature-related Financial Disclosures (TNFD). #sustainabilityreporting #biodiversity #humancapital

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🌏 Preparing for Assurance of Climate-Related Disclosures The importance of climate-related financial disclosures is growing. EY's guide provides straightforward advice on how to prepare, the role of CFOs, and the expectations from various levels of assurance. Ready to improve your governance and reporting? Read the full article here 👉 https://lnkd.in/gFKG3ugd #TalentNation

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In May 2024, the IFRS Foundation’s International Sustainability Standards Board (ISSB) announced the publication of the IFRS Sustainability Disclosure Taxonomy (ISSB Taxonomy), a new digital tool aimed at enabling investors to analyse sustainability-related financial disclosures based on the ISSB’s recently released sustainability and climate-related reporting standards. According to an IFRS, the new Taxonomy “will enable investors to search, extract and compare sustainability-related financial disclosures as ISSB establishes its global baseline of Standards." #ESG #sustainability #corporatereporting

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Happy World Environment Day all 🌳🦫🪲🌱🪶 The Business world has such a large part to play in restoring nature, and much of it can seriously benefit the business itself, the economy, and social issues 🌟 Win Win - what's not to love? ❤️ This is why I love my new role at Tetra Tech Europe as well as my steering committee role at #UKBBF UK Business & Biodiversity Forum Learn more in the article by our lovely Tt Comms team below (thanks Dean Meadowcroft) #WorldEnvironmentDay #NaturePositive #GlobalBiodiversityFramework #BiodiversityPlan

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Our guide for Group 2 entities outlines the disclosure requirements, location of disclosures and what a timeline could look like for entities required to commence climate reporting from 1 July 2026. https://bit.ly/48UMd5Q We also outline next steps to start planning in advance for Group 3 entities that are required to commence climate reporting for financial years beginning on or after 1 July 2027. Download our guide for Group 3 entities here: https://bit.ly/3ZaQrTF Michelle Warren #ClimateReportingGuide #ClimateReportingTimeline #MandatoryClimaterelatedDisclosures #ESGSustainability #SustainabilityReporting #FinancialReporting #HLBMannJudd

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Will the IFRS Sustainability and GRI collaboration resolve the confusion in sustainability reporting? As a participant in international standards, I have noted the confusion from existence of multiple sustainability frameworks. This article highlights the differences between IFRS Sustainability Standards and GRI, explore the merits and demerits of adoption each, and the benefits of collaboration between the two. The Differences IFRS Sustainability Standards and GRI share a common goal – to promote transparency and accountability in sustainability reporting. However, they differ in their approach, scope, and focus. - IFRS Sustainability Standards are designed to meet the needs of investors, lenders, and other creditors, providing a framework for companies to disclose sustainability-related financial information. - GRI, on the other hand, takes a broader stakeholder approach, covering a wide range of sustainability topics, including social and environmental impacts. Advantages and Disadvantages of Adoption Adopting IFRS Sustainability Standards offers advantages such as: - Streamlined disclosure process for companies - Consistent, complete, and comparable information for investors - High-quality and decision-useful information However, it also presents challenges like: - Companies may need to provide different and more detailed information depending on the frameworks applicable to them - Difficulties in comparisons between companies and decision-making GRI adoption offers advantages like: - Wider stakeholder focus - Comprehensive framework covering various sustainability topics But also has disadvantages like: - More complex and detailed framework - May not be suitable for investor-focused reporting Collaboration between GRI and IFRS Foundation Recognizing the need for consistency and comparability in sustainability reporting, the GRI and IFRS Foundation have embarked on a collaborative journey. The aim is to create a comprehensive and harmonized reporting framework that meets the needs of multiple stakeholders. - The collaboration will focus on developing a shared vocabulary and common metrics - Aligning the two frameworks to reduce reporting burdens and improve comparability - Enhancing the overall quality and decision-usefulness of sustainability reports As the sustainability reporting landscape continues to evolve, it is crucial for businesses to understand the differences between IFRS Sustainability Standards and GRI. By recognizing the advantages and disadvantages of each framework, companies can make informed decisions about their reporting approach. The collaboration between Global Reporting Initiative (GRI) and IFRS Foundation marks a significant step towards harmonization and consistency, ultimately benefiting businesses, investors, and stakeholders alike. As we move forward, it is essential to continue the conversation, driving progress toward a more transparent and sustainable future.

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The following are notes of the presentation delivered at AlterCOP29, on the 14th November 2024.  These are my opinions, as President of Red Sycamore. Regulators are setting minimum standards for sustainability reporting and disclosures to introduce more transparency and accountability on climate issues.  One of the discussions is the legal responsibilities of Chief Sustainability Officers (CSOs).  Some companies are pushing for the appointment of people with legal backgrounds.  Others, including myself, are pushing for CSOs to have an accounting background, because this is not primarily about legal compliance, but financial compliance. Countries are developing green taxonomies to standardise what qualifies as a green or sustainable investment.  The ASEAN Taxonomy Version 2 was released in June 2023, to provide a science-based framework to classify sustainable activities.  It includes four environmental objectives: mitigation of climate change risks, adaptation to climate change, protection of healthy ecosystems and biodiversity, and promotion of resource resilience and a transition to a circular economy.  The ASEAN Capital Markets Forum (ACMF) has released a roadmap for sustainable capital markets, focusing on strengthening infrastructure and improving access to financial products.  This roadmap aims to promote sustainable finance and support the region’s transition to a low-carbon economy. The ASEAN Taxonomy aims to ensure interoperability with other widely used international taxonomies, such as the EU Taxonomy and the Green Bond Principles. Indonesia, Malaysia, The Philippines, Thailand and Vietnam are developing national taxonomies to align with the ASEAN Taxonomy.  Here, in Singapore, we have introduced a carbon tax and are developing its taxonomy to support sustainable finance and decarbonisation efforts. Issuance of green bonds has increased, with a cumulative value of over US$4 trillion since 2018.  Sustainability-linked bonds have gained traction, as they link financial performance to sustainability targets.  Despite a drop in net inflows from US$161 billion in 2022 to US$63 billion in 2023, sustainable funds continue to attract significant investments.  Environmental, Social, and Governance (ESG) funds are becoming more popular.  Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs) provide funding and support for sustainable projects.  These institutions help to implement policies that promote sustainable finance.  The sustainable finance market in SEA is still relatively small, which indicates significant potential for growth.  Several countries in the region are considering or implementing carbon pricing mechanisms to incentivise emission reductions. (Continued) Terence Nunis Terence K. J. Nunis, Consultant President, Red Sycamore Global

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Need to find your way around the top 2024 sustainability reporting standards? Read below an useful summary that provides an at-a-glance overview and helps navigate the acronym sea.

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