Simon Thompson

It is going to be a busy day for all of us in sustainability roles - The Financial Conduct Authority has just published two highly anticipated documents! 1️⃣ Finalised Guidance FG24/3 Finalised non‑handbook guidance on the Anti‑Greenwashing Rule 🔗 https://lnkd.in/eJCsGS_u 2️⃣ Consultation Paper CP24/8** Extending the Sustainability Disclosure Requirements (SDR) regime to Portfolio Management  🔗 https://lnkd.in/eXPUdMAs 🧐 We look forward to sharing our comments in due course! Please DM me or email us at ESG ACCORD (Accord Initiative) if you have any questions. #AccordInitiative #compliance #esginvesting #climate #sustainableinvesting #financialplanning #esg #wealthmanagement

32

2 Comments

There have been a fair bit of significant developments recently relevant to disclosure ⏬️ Specifically when GRI and GHG Protocol are complementary to IFRS standards by International Sustainability Standards Board (ISSB) ➡️ Global Reporting Initiative (GRI) is developing a comprehensive taxonomy for its Standards, based on XBRL, a standardised format for organising and exchanging business information. This enhances access to impact-related sustainability data and helps reduce compliance costs. https://lnkd.in/gkdKFkvV There is a call for consultation on the 10th of July which you can participate (link https://lnkd.in/gF3JWJ_G) ➡️ Greenhouse Gas Protocol (GHG Protocol) has a suite of consultative engagement across all Corporate Standard, Scope 2 Guidance, Scope 3 Standard, Market based Accounting Approaches; with very detailed and transparent survey and proposal summaries to dive in. https://lnkd.in/gVbp5Zk5. My previous comments here https://lnkd.in/giy5ECiB ➡️ CDP rolled out a new multi-environmental issue format for the CDP full corporate questionnaire, combining all three existing questionnaires across climate change, forests, and water security into one questionnaire. Info https://lnkd.in/gbM3j_W2 All of the above which leads to the question... does any "Sustainability Professional" here feel that disclosure is becoming a full time role itself? while influencing business units to respond meaningfully is yet an additional task.

44

1 Comment

For anyone interested in sustainability sector standards... A recent International Sustainability Standards Board (ISSB) Staff Paper on the maintenance and enhancement of the SASB Standards offers a comparative table of the different sector standards with EFRAG, Global Reporting Initiative (GRI) (https://lnkd.in/e7XYUQri) Sector standards are becoming hugely valuable as credible inputs to a #materialityassessment (whatever perspective you take) and make it easier for companies #starting a sustainability reporting journey. It's good to have visibility on what's here now, and what's coming. #paradigmshift #sustainablefinance #sustainabilitydisclosures #esgdata #esg

641

18 Comments

This is very good news! The Management Commentary, or Management Discussion & Analysis (MD&A) is a regulatory disclosure document intended to provide a plain language explanation of the company’s performance from management’s perspective, and if and how future performance might differ from past performance. Does that not sound like the perfect place to put disclosures on sustainability-related issues, including “sustainability-related financial information” that doesn’t meet the criteria to be financial statements? Yes it does. The project had already articulated this pretty much, even before the advent of the ISSB. It will be very interesting to see how this unfolds. This is moving us towards a single document reporting that includes both financial and sustainability disclosures (prescribed under CSRD but still a little unclear under ISSB right now). #paradigmshift #sustainablefinance #sustainabilitydisclosures #esg

4

The latest edition of ESG Regulatory Essentials is now available to be downloaded here. Read more about developments impacting financial services firms in the UK and the EU, including the FCA’s Anti-Greenwashing Rule, the FCA’s consultation on extending SDR, and the Bank of England’s guidance on measuring climate-related finance risks using scenario analysis.   #greenwashing #esg #financialservices #riskandregulation

10

Useful benchmarks, which we will refer as appropriate in EFRAG sector ESRS.

10

A really important annual progress report on the UK's progress on its climate reduction strategy by the government's advisor - Climate Change Committee Really encouraging progress and projected plans for surface #transport (through electrification) and electricity generation sectors (through deployment of #renewables). But red and amber warnings on slow progress on decarbonising our buildings. And this sector has gone backwards when compared to the 2023 assessment. Space heating is a major proportion of our carbon emissions. And the mass deployment of #heatpumps (utilising our greening grid) enables us to switch away from fossil gas. The technology is there but we now need the policies and programme for rapid deployment. It is frustrating to see new homes being built that are designed and installed STILL with fossil gas boilers.

13

3 Comments

A SET OF UPDATED THEMATIC PAPER COLLECTIONS FROM VIRTUS INTERPRESS Since January 2024 we have updated some collections of the papers published in our journals. Thematic collections cover 68 topics related to corporate governance, accounting and finance. There are more than 2100 papers in a whole and all of them are free for reading and downloading. It is easy to browse and download. #corporategovernance #boardofdirectors #shareholders #stakeholders #reporting #disclosure #sustainability #responsibility #CSR #ESG #remuneration #directors #boardgemderdiversity #boardcommittees #Chairman #CEO #independentdirectors #listedcompanies #firmperformance #dividends #stockmarket #banks #familyfirms #ownership #control #earningsmanagement #mergers #acquisitions #accounting #auditing #riskmanagement #businessethics #regulation #investment #innovation #strategy #leadership #law See the link below https://lnkd.in/e7zBfjb

6

Legally binding climate targets mean something! Twice in two years the UK government has been taken to court for not doing enough to meet its carbon reduction targets. And both times the government has lost. In 2022, the courts agreed that the government's Net Zero Plan did not clearly show how the plan would achieve the targets set out in the #ClimateChangeAct. And the government was sent away to beef its plan up. This year, the plans have been challenged again. And again, the government has lost. Later today, the High Court is expected to announce timelines for Department for Energy Security and Net Zero to come back for a third time with a credible plan. #climatechange #netzero #climateemergency https://lnkd.in/ekSM4AxC

31

The The Investment Association and HM Treasury might be well advised to look at a credible definition of sustainable development and the Sustainable Development Goals before promoting the defence sector as "Investing in good, high-quality, well-run defence companies is compatible with ESG considerations". To state that "long-term sustainable investment is about helping all sectors and all companies in the economy succeed" presents a very limited concept of sustainability, ESG and SDGs. https://lnkd.in/eJXsmP3Y

3

Lord Callanan, DESNZ minister for Energy Efficiency and Green Finance, speaking today at The Investment Association Sustainabilty & Responsible Investment conference in London. In amongst an interesting discussion, a couple of nuggets for policy geeks (even if specific dates are still missing): - UK Taxonomy consultation will be out soon - Also planning to consult shortly on transition planning disclosures - Green jobs action plan and report from Solar Energy Taskforce also coming. #TheInvestmentAssociation Isha Gupta | Rosalind Fergusson

14

2 Comments

Corporate climate claims are back in the headlines with BBC Panorama's episode (https://lnkd.in/efvaNewq), which touches on demand and supply side integrity. It’s important to understand the mechanics of accountability in order to resolve how to deliver claims that can withstand scrutiny.   Good company claims should represent the last act of a cohesive, science-based package of responsibility. Good responsibility constructs are made up of a clear scope (i.e. what are responsible for?), robust definitions of how to enact (are we talking abatement/cessation, compensation?), mechanisms that enable them to enact (which mechanisms - direct funds, procurment, credit markets, EACs are 'good' at that job?) and finally a claim that represents all that truthfully.   Sometimes companies intentionally greenwash, this is obviously bad. Often though we're seeing a poorly thought through and applied responsibility construct that, like a dark room full of rakes leaves companies and proponents unable to work out why they keep getting criticised for taking action. Some thoughts:   1 - bad projects don't mean false mechanism - tighten up the mechanism supply side and there will be fewer bad apples (note, not none). Then have a way to deal with the bad apples that doesn't void the act and undermine the final claim.   2 - a bad match of act and mechanism undermines the whole construct. Arguments that start from which mechanism to use are fatally flawed because they leave people arguing for their interest rather than recognising whether their mechanism is fit for purpose. The carbon market is a good idea, if you apply that good idea to things it doesn't do (scope 3 abatement for e.g.) then its a good idea badly applied, one of the key rakes for companies to stand on. It also damages the reputation of the mechanism, see last night and as we’ve seen time and again.   3 - we've long advocated (2016!) to shift from offset to contribution. The intent to contribute remains true even if double claiming by countries and companies undermines an offset claim, even if you inadvertantly pick a bad apple. It better reflects the bundle of probabilities and estimates and gives you an act (and thus a claim) that is more aligned with the mechanism. Pass/fail binary claims are unsustainable. This is what brought down carbon neutrality, look out organisational nature positive claims.   To be credible you still have to set a target for Scope 1, 2, 3, make a good plan, keep it up to date, enact it to abate those emissions. The questions are about relevance and ambition of action, not whether you can use credits or EACs.   Then you have to take responsibility for the emissions happening while you're reducing; BVCM - a fair *contribution* to global net zero.   Couple with tightening supply integrity gives an authentic responsibility construct and at least turns the light on so you can see the rakes. #carbonmarkets #corporatesustainability

72

21 Comments

📚 TNFD publishes new guidance – June 2024    Today, the #TNFD has published final Additional sector guidance for eight real economy sectors to apply the LEAP approach alongside updated Additional guidance for financial institutions to apply the TNFD Recommendations and final Guidance on value chains. This follows an 18-month process of iterative development, including extensive consultation with the TNFD’s knowledge partners and market participants.    Additional sector guidance -  Aquaculture - https://lnkd.in/dH7WbWVr  Biotechnology and pharmaceuticals - https://lnkd.in/dqBcrPjC  Chemicals - https://lnkd.in/dcEt3dGN  Electric utilities and power generators - https://lnkd.in/dJHwQnZh  Food and agriculture - https://lnkd.in/dsFRsymw  Forestry, pulp and paper - https://lnkd.in/d4uzec2n  Metals and mining - https://lnkd.in/dJsrk_-V  Oil and gas -  https://lnkd.in/d4Ht6mPp Additional guidance for financial institutions - https://lnkd.in/dP-C7Jqq Guidance on value chains - https://lnkd.in/ddPfKnNu Alongside this guidance, we have also published guidance for five additional sectors, which are open for consultation and feedback from 4 July – 27 September.  Draft sector guidance - https://lnkd.in/ddPfKnNu The development of TNFD's sector guidance has been led by working groups of TNFD Taskforce members with extensive input from both science partners and market participants over the past year, including through focus groups and written feedback. The Taskforce is grateful for the input received from a wide range of individuals and organisations. #TNFD #NatureReporting #SustainableFinance  

490

13 Comments

#TNFD has published several guidance on the applications of the TNFD Recommended Disclosures for banks, re/insurance companies, asset managers and owners, and development finance institutions. Biodiversity Consultancy Services can help the company develop the program and reporting related to TNFD guidance and requirements

3

ADAPTING TO UNCERTAINTY: GENDER DIVERSITY IN BOARDROOMS AND ITS ROLE IN ENHANCING SUSTAINABLE CORPORATE GOVERNANCE AND ESG PERFORMANCE IN THE ERA OF COVID-19 This research, recently published in our journal Corporate Board: role, duties and composition, investigates the role of women as a moderator variable in the relationship between governance and environmental, social, and governance (ESG) performance during the COVID-19 crisis. Using the sample of firms from five Association of Southeast Asian Nations (ASEAN) countries, the results show that the presence of women in a board structure has a positive impact on ESG performance during the normal era. However, the woman board members have not proven to strengthen the relationship between governance and ESG performance during the COVID-19 era. This could be caused by the fact that in the COVID-19 era, firms need to concentrate more on short-term profit to survive. However, we believe their presence will improve the company’s reputation and speed up the firm’s recovery during times of crisis. #corporategovernance #boardofdirectors #genderdiversity #boarddiversity #firmperformance #ESG #sustainability Find the full-text paper below https://lnkd.in/drUKruBt

17

Between 28-30 April 2024, the G7 Climate, Energy and Environment ministers met in Turin (current presidency sits with Italy). They adopted a 'Joint Declaration' that gives a precise follow-up to the goals agreed at COP 28. It sends a clear message to others, particularly the major economies, on the level of commitment that is needed to adequately address the challenge of climate change. so what are top message from their meet up ? Click below to read. #G7 #Climatechange #JustTransition #NDC #onepointfive

1

2 Comments

UK Gov has updated on #sustainability disclosure requirements and expected timeframes - see below

5

ESG. The terms ‘environmental’, ‘social’ and ‘governance’ are used to refer to sustainability matters here, but in reality are part of good practice in any event. Complying with the FCA Principles starting with Integrity is a requirement and so there is nothing too complex here, maybe if products are being sold that have sustainability claims, time may be needed to check them. however, the deadline is very close. #ESG #financialservices

2