Author: ESGTree

When the European Union’s Sustainable Finance Disclosure Regulation (SFDR) came into force in March 2021, it signalled to the world that the EU was ready to take a global lead on ESG reporting and sustainable finance.The move impacted all financial market participants and financial advisors based within the EU. Along with the European Green Deal (which aims to see the bloc carbon neutral by 2050), and the EU’s “green taxonomy” (an industry-based classification system of what can and cannot be marketed as a sustainable product), a potent mix of regulatory mechanisms is set to usher Europe towards an economy in line with the Paris Agreement and the United Nations Sustainable Development Goals (SDGs).

Explore the key updates and implications of the IFRS S1 and S2 sustainability disclosure standards introduced by the ISSB on June 26, 2023. This comprehensive article discusses how these new standards, which integrate TCFD and SASB frameworks, are transforming corporate sustainability reporting and influencing both voluntary and mandatory reporting regimes. Learn about stakeholder feedback, the adoption process across jurisdictions, and upcoming ISSB standards on biodiversity and human capital. Prepare your organization for the challenges of compliance and data collection in this new era of sustainability reporting

Discover the transformative impact of California’s SB 253, the groundbreaking Climate Corporate Data Accountability Act signed into law in October 2023. This landmark legislation mandates that companies with over $1 billion in revenue disclose greenhouse gas emissions in line with GHG Protocol standards. Explore the implications for ESG reporting, compliance challenges, and how this law sets a precedent for corporate transparency in North America. Learn how ESGTree’s innovative solutions, including a Carbon Calculator and automated reporting tools, can help organizations navigate this new regulatory landscape and enhance their sustainability efforts.

In the evolving landscape of private equity, stakeholder calls for transparency and accountability have never been louder. As institutional investors, or limited partners (LPs), increasingly demand comprehensive reporting on environmental, social, and governance (ESG) factors, general partners (GPs) are under pressure to meet these expectations while staying ahead of industry trends. One area of focus is diversity, equity, and inclusion (DEI), a critical component of the broader ESG mandate that is gaining momentum within private markets.
The Institutional Limited Partners Association (ILPA), a leader in setting standards for the private equity industry, has introduced a Diversity in Action (DIA) framework that provides a clear pathway for GPs to address DEI, alongside its established ESG guidance. This framework helps GPs align with LP expectations while promoting a more inclusive and sustainable future. In this article, we explore how ILPA’s Diversity in Action initiative, coupled with best practices in DEI data collection and reporting, can drive meaningful change and enhance value for private equity firms.

The CSRD targets financial and non-financial companies covered by the Accounting Directive and the Transparency Directive, and falling into the following categories:

The United States Securities and Exchange Commission (SEC) is poised to release its highly anticipated climate-related disclosure rules for public US companies – a ruling that has been in the making for over a year.

Originally published in March 2022, the SEC proposed that all publicly listed US companies be mandated to report their climate data in alignment with reporting recommendations from the Taskforce on Climate-related Financial Disclosures (TCFD).
When the proposal was then opened for public comment, the SEC received over 3,400 letters, significantly more than it customarily does when seeking public input.

While the SEC ruling applies to public companies, given the current global regulatory environment, along with calls for greater scrutiny of ESG claims within the private equity industry, it is only a matter of time before similar climate considerations be asked of private funds. Moreover, although the proposal will almost certainly face some measure of legal challenges, this will likely not deter 98% of companies from implementing climate reporting, according to a PricewaterhouseCoopers survey of 300 senior executives at US public companies with at least $500 million in revenues

The United Kingdom now mandates TCFD-aligned reporting requirements for the private sector. The United States Securities and Exchange Commission has proposed requiring publicly traded US companies