Commonwealth Climate and Law Initiative (CCLI)’s Post

A recent report highlights that many companies fail to meet adequate standards in environmental reporting. Despite adopting Environmental, Social, and Governance (ESG) frameworks, these companies struggle with transparency and accountability in disclosing environmental impacts.  #EnvironmentalReporting #Sustainability #ESG #CorporateResponsibility #Transparency #SustainableBusiness #ClimateAction #GreenBusiness  #ESGCompliance

🌍 𝐄𝐒𝐆 𝐋𝐞𝐠𝐚𝐥 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭𝐬: 𝐒𝐞𝐩𝐭𝐞𝐦𝐛𝐞𝐫 2024 🌍 The global ESG landscape is evolving rapidly, with significant legal updates shaping the way businesses operate: 1. 𝐄𝐜𝐨𝐜𝐢𝐝𝐞 𝐚𝐬 𝐚 𝐂𝐫𝐢𝐦𝐞: Pacific Island nations propose ecocide for prosecution at the ICC—potentially transformative for environmental accountability. 2. 𝐔𝐊 𝐓𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧𝐬: The UK's last coal-fired power station has closed, alongside stronger environmental protections with the Water (Special Measures) Bill. 3. 𝐄𝐔 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬: Mario Draghi’s report calls EU decarbonization efforts a growth driver but warns of sustainability reporting burdens. 4. 𝐂𝐚𝐥𝐢𝐟𝐨𝐫𝐧𝐢𝐚’𝐬 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠: New bill amendments refine California’s groundbreaking Climate Accountability Package, enforcing transparency on corporate emissions. 5. 𝐒𝐨𝐮𝐭𝐡 𝐀𝐟𝐫𝐢𝐜𝐚’𝐬 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐀𝐜𝐭: A strategic law to reduce GHG emissions and enhance resilience, marking progress for Africa’s climate governance. 6. 𝐁𝐨𝐭𝐬𝐰𝐚𝐧𝐚’𝐬 𝐕𝐨𝐥𝐮𝐧𝐭𝐚𝐫𝐲 𝐄𝐒𝐆 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞: Aligning with global standards, Botswana boosts transparency to attract sustainable investments. 7. 𝐄𝐮𝐫𝐨𝐩𝐞𝐚𝐧 𝐋𝐞𝐠𝐚𝐥 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 𝐨𝐧 𝐆𝐫𝐞𝐞𝐧𝐰𝐚𝐬𝐡𝐢𝐧𝐠 𝐚𝐧𝐝 𝐓𝐚𝐱𝐨𝐧𝐨𝐦𝐲: Greenwashing cases are gaining momentum globally. In Europe, a coalition of NGOs filed a lawsuit against the European Commission, challenging the sustainability criteria for aviation and shipping under the EU Taxonomy. As ESG regulations grow, businesses must stay agile to ensure compliance and sustainability. For details read https://lnkd.in/dU_kiSfv #ESG #Sustainability #CorporateLaw #LegalUpdate #ClimateChange

💡 A study conducted by PwC on CSRD readiness showed that over 93% of ESG teams feel confident reporting on Own Workforce (ESRS S1), Business Conduct (ESRS G1) and Climate Change (ESRS E1). Companies exhibit greater confidence in reporting on internal dynamics and immediate environmental impacts. 🌱 The study unveils a significant knowledge gap, with 13% of companies explicitly lacking confidence in biodiversity reporting. Fortunately, 25% of companies in the study fall out of scope for Biodiversity reporting (ESRS E4). 🌎 The certainty amongst climate and business related factors also suggests that companies are more confident reporting on topics that are typically included in existing sustainability reports (GRI, CDP, SASB etc). #CSRDresearch #CSRD #CSRD #ESG Source: https://lnkd.in/dVX-MPM2

Long list of ESG news this week so I'll be breaking it out across a few posts! 💚📝🔽 ▶ We are halfway through #COP29 in Baku with progress being made on crucial Article 6 negotiations for international carbon credit markets. I'll write a longer piece on the key takeaways from COP for NZ at the end of the summit.   ▶ Ministry for the Environment | Manatū mō te Taiao opened consultation on Aotearoa's second international climate change target. Submissions are due by 8 December   ▶ NZ agreed a sustainable trade deal with Switzerland, Costa Rica and Iceland (ACCTS) which eliminates tariffs on 316 environmental goods, improves market access for NZ wool, facilitates trade in environmental services, addresses fossil fuel subsidies, guides eco-labelling programmes and has pathways for further expansion, including to new members   ▶ The Govt announced $60m to explore supercritical geothermal energy to enhance energy security, reduce emissions, & provide baseload supply   ▶ Contact Energy Ltd is progressing with its geothermal expansion with the construction of Te Mihi Stage 2 and soon the opening of Tauhara and Te Huka 3   ▶ The Major Electricity Users' Group (MEUG) released case studies on the barriers and opportunities for demand-side response of several large New Zealand companies   ▶ New Zealand Green Investment Finance released its annual report and new strategy to drive future decarbonisation investment   ▶ The External Reporting Board announced it will be proceeding with 3 of the 4 proposed extensions to adoption relief provisions for climate reporting, as well as issuing further guidance this year   ▶ Fonterra reported on progress at its Net Zero Pilot Dairy Farm   ▶ Responsible Investment Association Australasia (RIAA) launched its Responsible Investment Benchmark Report for Australia this year   ▶ The UK's CMA closed its #greenwashing investigation into Unilever after being satisfied with the response and progress   ▶ The FRC is consulting on updates to the 2020 UK Stewardship Code (seen as a global leader)   ▶ The UK's plans to regulate ESG ratings providers continue at pace   ▶ Political challenges in the European Parliament have resulted in major amendments to the EU's deforestation law, EUDR   ▶ IFRS Foundation published its first TCFD annual review finding that less than 3% of >3,800 companies reported in line with all 11 TCFD recommendations in 2023   ▶ The Net Zero Tracker team launched an excellent new tool comparing net zero standards   ▶ Sustainable Fitch announced it is expanding its assessment of corporate climate transition plans & progress monitoring to new sectors   #esg #climatechange #climateaction #sustainability #sustainablefinance #DLAPiperNZ 📸 Carlota Vidal | Unsplash

"Singapore will provide funding support of up to 30 per cent for large companies that will begin making mandatory climate-related disclosures aligned with the International Sustainability Standards Board (ISSB) framework from 2027" - a great example of regulatory leadership! It'll be great to see similar support in Hong Kong and other Asian jurisdictions. "Since the start of 2024, TCFD-aligned reporting is mandatory for Singapore-listed companies in the financial, agriculture, food and forest products, energy, materials and buildings, as well as transportation industries." https://lnkd.in/g9_kbeFn Singapore’s listed companies could make mandatory climate-related disclosures from FY2025, followed by large non-listed companies from FY2027. Nation-wide capacity building initiatives are set to roll out by 2024. Eugene Tay Grace Fu Climate Governance Singapore #sustainability #esgreporting #incentives #sustainablestockexchange #issb #tcfd #governanceriskmanagementandcompliance

Following Bursa Malaysia, SGX is taking an important step, demonstrating the increasing focus on sustainability among ASEAN countries.

We are dealing with complexity when we consider sustainability and the ambition to reduce environmental footprint. What we need is a complete connected ecosystem which requires us to think differently "A change in our mindset", accepting a balanced approach " Climate change impact and also looking at biodiversity & social impact" and connect policies and goals aligning to the agreed transition pathways. It is good to see the approach Singapore is taking towards Climate related disclosures. If we need enterprises to start reporting on climate KPI's, what organizations would need is support and funding. Thanks for sharing Agnes K Y Tai, PhD 戴洁莹 A positive change towards climate related disclosures, Saby DSouza, Amit Bhute, Subhasish Bhattacharyya, Prashant Shukla #ISSBreporting, #climatedisclosure #sustainabilityreporting #sustainability #effectivegovernance

The South Pole consultancy report unveils a troubling trend known as "greenhushing" among Singaporean companies, where they opt for silence on contentious governance issues such as climate actions and director remuneration due to fear of backlash. This silence, influenced by regulatory ambiguity and enforcement challenges, undermines industry pressure on climate goals and casts doubts on sustainability commitments. Prof. Lawrence Loh, Director of the NUS Centre for Governance and Sustainability (CGS) at the National University of Singapore Business School highlights that the "comply or explain" approach can worsen greenhushing, emphasizing the importance of addressing disclosure grey areas for effective regulation and transparency. He notes that many companies end up doing nothing, ignoring disclosure requirements without providing explanations, ultimately maintaining total silence. #Sustainability #ESG #Disclosure #Compliance l The Business Times l Pei Ting Wong

The work must go on... another ESG news wrap up through a New Zealand lens 💚📝🔽 ▶ the Govt is planning to overhaul 400+ standards for rooftop solar & EV charger installs to improve alignment with Australia & international best practice. The Govt will also consult on increasing the voltage range so homes and businesses can sell more power back to the grid ▶ NZGBC released its first Green Star Impact Report showing the significant impact the regime has had on sustainable building practices here ▶ BusinessDesk reports that our Government will not proceed with planned regulations to reduce emissions in the building sector and improve energy efficiency, instead preferring to support a voluntary market-based approach ▶ the External Reporting Board has published the submissions it received on the proposed amendments to our Aotearoa New Zealand Climate Standards. Thanks to everyone that had their say! ▶ EY and WWF-New Zealand published a report on a nature positive Aotearoa and the substantial economic opportunity available to us from achieving just five of the 23 Kunming-Monteral Global Biodiversity Framework Targets ▶ EFRAG published its first draft of the Transition Plan Implementation Guidance ▶ the UK's Transition Plan Taskforce published its final report "Progress Achieved and the Path Ahead" ▶ the FCA published good practice examples for firms looking to apply the #SDR labels to their sustainability labelled funds ▶ Global sustainable bond issuance exceeded $800bn in the first nine months of 2024 ▶ ICMA - International Capital Market Association released its Principles Guidance Handbook of useful Q&As to support the #GSSS bond market ▶ Tesco launched a milk sustainability partnership with Arla and Müller ▶ Microsoft is replacing steel and concrete in new datacentres with wood to reduce GHG emissions ▶ Starbucks has dropped its non-dairy milk surcharge in the US and Canada (fees had already been phased out in the UK, Germany, and France) ▶ the International Public Sector Accounting Standards Board has released its Climate-related disclosures Exposure Draft for the Public Sector. Of extreme relevance to central and local governments and the public looking to track those bodies' action on emissions mitigation, resilience and adaptation ▶ the 2024 Energy Technology Perspectives report from the International Energy Agency (IEA) is well worth a read ▶ the Commonwealth Climate and Law Initiative (CCLI) & Climate Governance Initiative published their Global Navigator on Climate Risk and Directors' Duties ▶ The Assessing Sovereign Climate-related Opportunities and Risks project has released its report on 70 sovereign bond issuers, including New Zealand, covering #GHGemissions, climate policies & #climatefinance, ahead of #COP29 ▶ the Climate Policy Initiative published its Global Landscape of Climate Finance 2024 report 📸 AHMAD BADER | Unsplash #esg #climatechange #sustainability #sustainablefinance #greenfinance #DLAPiperNZ

Data and capacities are the biggest challenges faced by companies going down the path of climate disclosures, all increasing the cost of compliance. While climate action is important, given the grave climate risks we face, managing the increased cost in the short term is something companies are often seen to be grappling with. Government support, such as what Singapore has announced will go a long way in fuelling the market. auctusESG #climateaction #climatedisclosures #issb #singapore #costofcompliance #climatetransition