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The EU's Corporate Sustainability Due Diligence Directive (CSDDD) is officially in effect as of July 25, 2024. Key dates: - EU Member States must integrate the directive into national law by July 26, 2026. - Companies with over 5,000 employees and €1.5 billion in worldwide turnover must comply starting from July 2027. - Smaller companies have extended deadlines based on specific thresholds. - Non-EU companies must focus on their turnover within the EU. Enforcement: - Supervised through administrative measures and civil liability. - National authorities in EU Member States will oversee enforcement. - A European Network of Supervisory Authorities will be established. - Member States will ensure compensation for victims of due diligence failures. The CSDDD works alongside the Corporate Sustainability Reporting Directive (CSRD). While the CSRD requires companies to disclose their sustainability practices and impacts, the CSDDD mandates due diligence on supply chains to address human rights and environmental risks. For more detailed information, visit https://lnkd.in/es7y6uAT. #csddd #csrd #esg #nossadata

Earlier this month, a report produced by UNEP FI’s Risk Centre, a new virtual hub that is integrating resources to help UNEP FI’s members tackle sustainability risks, in partnership with the National Institute for Economic and Social Research was published, titled "Nature-related Financial Risks: A Conceptual Framework to Guide Action by Central Banks and Supervisors". Who is this report for? This report is intended for central banks, financial supervisors, policymakers, and financial institutions. It offers a detailed framework to help these entities identify, assess, and manage financial risks associated with nature degradation. Highlights: - Purpose: To establish a common, science-based understanding and language for nature-related financial risks among NGFS members. - Framework: Provides a principle-based risk assessment framework that aids central banks and supervisors in identifying and assessing material nature-related financial risks, guiding the development of policies and actions suitable for their context. - Integration: Emphasises the interconnectedness of climate-related financial risks with broader environmental risks, advocating for an integrated approach in risk management. - Importance of Short-term Scenario Analysis: The report highlights the significance of short-term scenarios in understanding the immediate impacts of nature-related financial risks. These scenarios help financial institutions prepare for and mitigate potential shocks from environmental changes and regulatory shifts aimed at biodiversity conservation. Read the Scenarios for Assessing Climate-Related Risks: New Short-Term Scenario Narratives by UNEP FI and NIESR report here: https://lnkd.in/eCmAZ2NU #biodiversity #financialrisks #sustainability #ngfs #esg 

The NGFS (Network for Greening the Financial System) Conceptual Framework recently published their report on nature-related financial risks aimed to enhance the understanding of how nature and biodiversity loss impact the financial system and economy. This report provides a comprehensive approach for central banks and supervisors to identify, assess, and manage nature-related financial risks; it delves into the complex interactions between nature, the economy, and the financial system. The framework identifies three critical phases for assessing nature-related financial risks: Phase 1: Identify Sources of Physical and Transition Risk Phase 2: Assess Economic Risks  Phase 3: Assess Risk to, from, and within the Financial System 🔗 Read the Conceptual Framework to guide Action by Central Banks and Supervisors report here : https://lnkd.in/gvzkuhQN  #sustainablefinance #ngfs #esgreporting #greenfinance #riskmanagement

Earlier this year, EFRAG issued a draft XBRL Taxonomy and sought feedback between February and April. The response was positive, with 85% of the 50 respondents affirming it accurately reflects the disclosure requirements in the ESRS. Next steps: - Finalisation & publication: the final ESRS XBRL Taxonomy and illustrative examples will be published in the second half of August. - Hand over to ESMA: the Taxonomy will be handed over to ESMA to draft Regulatory Technical Standards (RTS). - Introduction of Digital Tagging: Digital tagging requirements are expected for ESRS reporting from the financial year 2025. - Additional Guidance: EFRAG will consider drafting further guidance on using the XBRL taxonomy and digitally tagging sustainability-related disclosures. See the full approval paper here: https://lnkd.in/gVZzgHJm Learn about ESRS here: https://lnkd.in/e8qW-sxd #esg #XBRL #ESRS

Earlier this month, the Science Based Targets initiative (SBTi) published its 2023 Monitoring Report. This report provides an overview of the Science Based Targets initiative's (SBTi) achievements, progress, and updates for the year 2023. It highlights key trends in companies and financial institutions setting science-based targets, major milestones achieved by SBTi, and significant publications released during the year. The Science Based Targets initiative (SBTi) is a global body enabling businesses and financial institutions to set ambitious emissions reduction targets in line with the latest climate science. The goal is to drive corporate climate action to keep global warming within 1.5°C and achieve net-zero emissions by 2050. Here's some of the highlights from the report 📊 2023 in Numbers: - There has been a 57% increase in large companies globally with validated targets. - 1,425 small and medium-sized enterprises (SMEs) set targets in 2023, contributing to the total 2,267 companies with validated targets. - 83% growth in financial institutions with science-based targets, now totalling 86. - 449 companies set net-zero targets, marking a 245% growth from 2022. 🏆 Some 2023 Milestones: - February: Launched the Interim 1.5°C Aviation Pathway for aviation companies to set science-based net-zero targets. - July: Implemented a new compliance policy that encouraged companies to submit targets for validation. - September: Published the Steel Guidance, providing a decarbonization framework for the steel sector. - November: Updated the SME definition to align with the Corporate Sustainability Reporting Directive (CSRD) in Europe. For detailed insights, explore the full 2023 Monitoring Report: https://lnkd.in/gkx2TZ6k #climatechange #sbti #netzero #sustainability #esgreporting

GRI has published a comprehensive guide answering frequently asked questions on how GRI reporters can prepare to meet the requirements of the Corporate Sustainability Reporting Directive (CSRD). What's inside? - An in-depth look at the collaboration between GRI and EFRAG - Key resources and training courses on the ESRS requirements - A detailed comparison of the main similarities and differences between the ESRS and GRI standards Peter Paul Van De Wijs, GRI Chief Policy Officer, says: "Most large companies, in the EU and elsewhere, already report with GRI. It is hugely reassuring that they can apply their existing disclosure practices to meet ESRS requirements. Our ongoing collaboration with EFRAG future proofs the relevance of the GRI Standards in the EU." 🔗 Read the full Q&A guide here: https://lnkd.in/dnm3RYCR Learn more about the CSRD and how Nossa Data supports it here: https://lnkd.in/e8qW-sxd #esg #GRI #CSRD #ESRS

The Commission published a report on the monitoring of climate risks to financial stability in the EU. It takes stock of analytical work and policy responses carried out by the EU so far. The report is part of an ongoing learning process by regulators, supervisors and industry. Highlights from the report: Impact of Climate-Related Risks on Financial Stability: The report outlines key findings on how climate-related risks impact financial stability in the EU. It emphasises both physical risks (from extreme weather events and natural catastrophes) and transition risks (from policy changes, technological advancements, and shifts in consumer preferences) as significant factors affecting financial and non-financial institutions. Challenges in Addressing Climate Risks: The report identifies several challenges in tackling climate-related financial risks, such as data availability and quality, the complexity of climate risk modelling, and the need for comprehensive and coordinated regulatory measures. It underscores the importance of improving data collection and sharing to better understand and mitigate these risks. Policy Responses at the EU Level: The report reviews the policy measures implemented by the EU to address climate-related financial risks. These include enhancing disclosure requirements, incorporating climate risks into microprudential and macroprudential regulations, and fostering collaboration among EU institutions and member states. The report also mentions ongoing and future initiatives aimed at strengthening the resilience of the financial system to climate-related risks. Read on the report on the monitoring of climate-related risk to financial stability, here: https://lnkd.in/ebJ_STYh #climaterisk #financialstability #euregulations #sustainability

The Taskforce on Nature-related Financial Disclosures (TNFD) and EFRAG have jointly published a mapping of the correspondence between the European Sustainability Reporting Standards (ESRS) and the TNFD’s recommended disclosures and metrics, illustrating the high level of commonality achieved. This assessment highlights that all 14 TNFD recommended disclosures are reflected in the ESRS. What the document covers: Part 1: Accompanying document to the TNFD – ESRS Correspondence Table - Provides background on the collaboration between TNFD and EFRAG. - Outlines objectives, key findings, and explains the alignment in concepts, definitions, materiality approach, and reporting pillars. Part 2: TNFD – ESRS Correspondence Table - Offers a detailed mapping of disclosure recommendations and metrics, helping stakeholders identify overlaps and leverage their reporting efforts effectively. Explore the full document here: https://lnkd.in/gGvWiCWh #sustainability #esg #esgreporting #tnfd #esrs

Last week, Sustainable Fitch released its June Update for its ESG Regulations and Reporting Standards Tracker. The Sustainable Fitch ESG Regulations and Reporting Standards Tracker is a quarterly-updated Excel that provides insights into the development of ESG regulations and reporting standards. A summary of what the Report contains: - Key Regulatory Updates: Canada’s Corporate Climate Disclosure rule, China’s draft sustainability disclosure standard, the EU’s CSDDD and methane regulation, India’s BRSR Core-Framework, and the US SEC’s voluntary stay on climate disclosure rules. - Supply Chain Focus: Emphasis on supply chain due diligence and disclosure rules since the CSDDD adoption. - ISSB Adoption: Australia, Brazil, and Japan, are integrating ISSB standards. - Future Regulations: Mexico is set to reveal a list of new ESG-related regulations by the end of the year. The UK will publish details of the Sustainability Disclosure Standards (SDS) in the first quarter of 2025. Indian banks will start disclosing climate-related financial risks from 2025. Mandatory climate reporting in Australia and California starts in 2025 and 2026, respectively. Read the Report here: https://lnkd.in/eZ3EtayK Download the Excel here: https://lnkd.in/e-VQYsEh Learn about improving your ISSB disclosures here: https://lnkd.in/eh6azavV #esg #issb #nossadata #csrd #csddd

The Taskforce on Nature-related Financial Disclosures (TNFD) announced at London Climate Action Week a 30% increase in adopters of their corporate reporting recommendations since January. Key takeaways: - 96 new organisations since January 2024, bringing the total to 416 adopters. - Adopters span over 50 jurisdictions and 62 of 77 SICS sectors. - Representing over $6 trillion USD in market capitalization, a 50% increase since January. - 114 financial institutions representing $15.9 trillion USD in AUM. - New adopters include financial giants LGIM, Generation Investment Management, MUFG Asset Management, and leading companies like Volvo, Ricoh, China Mengniu Dairy Ltd, and Acciona. The TNFD has also released a suite of sector guidance, covering eight real economy sectors: Aquaculture, Biotechnology and Pharmaceuticals, Chemicals, Electric Utilities and Power Generators, Food and Agriculture, Forestry and Paper, Metals and Mining, Oil and Gas. Learn more about Nature-Related disclosures here: https://lnkd.in/e9RpaChX Learn more about the TNFD and how Nossa Data supports it here: https://lnkd.in/eY3Tm9Dh #esg #TNFD #nature #nossadata