Abhiram V’s Post

1. Climate disclosure rule not the only ESG regulation on SEC’s docket 2. DEI debate increases foothold in companies’ ESG reporting strategy 3. Investors and legislators are fighting over shareholder rights 4, Climate financing focused on physical assets, developing markets https://lnkd.in/geSQGeWm   Blog - DRWG Code of Conduct Offers Global Base for ESG Ratings - https://lnkd.in/g5UjGNCc Blog – ESG adoption through Collaboration between Private and Public Sector - https://lnkd.in/gPgwG2sY Paul Young CPA CGA Senior Data and AI Thought Leader and Lecturer - ESG Policy and ESG Reporting Paul_Young_CGA@outlook.com   Paul Young is former IBM Senior Customer Success Manager that deploy over 300 data and AI solutions for the past 8 years. Paul is also SME on ESG policy and reporting including how best to manage the ESG data as part of the operational, management, and regulatory reporting cycles.   #scope1 #scope2 #scope3 #ESG #biodiversity #energymanagement #watermanagement #wastemanagement #risk #climatechange #emissions #socialgovernance #corporategovernance     https://lnkd.in/gcqnVV7G    

ESG Insights 2024: What's on the Horizon? As we navigate through 2024, it's crucial to stay attuned to the evolving landscape of Environmental, Social, and Governance (ESG) considerations. Here's a quick snapshot of what's ahead: Regulatory Wave: Expect a surge in ESG-related regulations globally, demanding tighter integration into company practices and financial reporting. Legal Challenges: Brace for an uptick in lawsuits and enforcement actions as scrutiny around ESG compliance intensifies. Political Influence: Political shifts, particularly in the US, will shape ESG strategies, highlighting the need for agility in response to regulatory changes. Corporate Accountability: Companies face mounting pressure to fulfill ESG commitments, with a spotlight on board oversight. AI Ethics: The spotlight on Artificial Intelligence governance grows, prompting companies to align practices with evolving ESG standards. Global Focus: ESG regulation expands worldwide, urging businesses to embed ESG principles across their value chains. Transparency Demands: Expect increased calls for transparency and risk management throughout value chains to address ESG concerns. ESG Industry Boom: The demand for ESG expertise surges, driven by regulatory requirements and investor expectations. Combatting Greenwashing: Regulators tighten grip on unsubstantiated ESG claims, emphasizing the need for robust compliance. Diverse Environmental Focus: Attention extends beyond climate change to encompass biodiversity and natural capital, shaping regulatory and investor landscapes. Stay ahead of the curve by embracing nuanced ESG strategies to navigate the ever-changing terrain of sustainability. Dive deeper into these insights: https://lnkd.in/gT-F5Qw7. #ESG #Sustainability #CorporateResponsibility

🌿🌍 As we venture into 2024, the ESG (Environmental, Social, Governance) horizon is rapidly shifting, introducing fresh challenges and prospects for those in the realm of business consulting and academia. 🚀📘 Heightened Focus on ESG Goals 🎯: As we edge closer to 2025, the clock is ticking for companies to live up to their ambitious climate promises. This year is crucial for evaluating the feasibility of these targets and for businesses to be transparent about their journey and milestones. It's time to put these pledges under the microscope! 📈 https://lnkd.in/eQzTqCuC AI and ESG: A Critical Nexus 🤖💡: Artificial Intelligence takes a central stage in the ESG arena, blending technology with ethical governance. Expect regulations and corporate strategies to increasingly focus on ensuring AI is used responsibly, avoiding biases and enhancing workplace and societal welfare. 🌐 A Global ESG Mosaic 🌏🔍: ESG regulations are expanding worldwide, affecting business operations across continents. This year, the spotlight shines on adopting a holistic view, understanding diverse regulatory landscapes, and ensuring sustainable practices throughout global operations and value chains. 🛤️ Value Chain Transparency 📊🔎: The push for deeper insights into sustainability practices extends through entire value chains. This involves navigating emerging regulations and meeting both consumer and investor demands for ethical sourcing and production. Companies will need to showcase their commitment to sustainability from the ground up. 🌱 The Business of ESG 🏢🍃: As mandatory ESG requirements grow, so does the ecosystem supporting companies in meeting these challenges. Expect increased demand for ESG-related services from consultancies, legal advisors, and tech platforms, all aimed at ensuring companies can navigate the evolving ESG landscape effectively. 🚀

🚨 The EU will finally regulate ESG ratings ! 🌍 The European Parliament's Committee on Economic and Monetary Affairs recently took significant strides in regulating ESG rating agencies. Acknowledging the need for robust oversight, the committee endorsed key elements of the proposed regulation, emphasizing the separation of ESG activities from other financial services. 🌐 Additionally, the committee emphasized the need for global standards, extending regulatory measures to ESG rating agencies operating in third countries. This effort aims to maintain fair competition and uphold transparency standards worldwide. 🌱 These are exciting strides for the future of sustainable finance and completely aligns with FINGREEN AI's mission for fully transparent ESG measurement systems. Les Echos #SustainableFinance #ESGRegulation #GlobalStandards

I had an opportunity to watch the MSCI Inc. Sustainability and Climate trends to watch for 2024, here some insights: Extreme and dramatic weather change and its impact in people and companies: 2024 is expected to be the hottest year in history, this extreme weather is affecting where and how people live and work. global rising temperatures pose great danger to productivity cuts, calling on companies to boost their climate resilience in their workplace. The quest to investors is on how to identify which companies are taking into account that resilience efforts, and how to measure weather related impacts on revenues as result from lower worker productivity. Importance of corporate governance oversight (Auditing the Auditors): Risk expertise and auditors seem not to be enough anymore, As regulators press on greater scrutiny and transparence from auditors in their reporting, this represents a unique opportunity for investors to assess the aptness of specific auditors which aligns with the purpose of #CSRD. Governance boards will have to step up and do the Audit of Auditors in order to bring about that quality that audit regulators are looking for, as for this information will most definitely have great impact on investment decisions as investors could be tricked into not detecting crucial financial risks at investee companies due to potential audit deficiencies. Generative #ai a disruptive force: With the deployment of AI we foreseen three basic scenarios, positive impact in labor productivity, Job cuts and workforce transformation. However, to enhance human productivity, necessary investment in workforce training with new skills are essential, companies must be willing to carry both costs simultaneously, invest in their employees alongside AI to keep jobs in the future. The question is, what are companies willing to favor, cutting cost as AI brings job cuts or investing in current workforce with new skills? Or creating room for new talent? Supply Chain Traceability and Disclosure:  Companies participating in global supply chains are being targeted by regulators, policies are being drafted in order to bring about traceability and accountability in supply chain participants. EU regulations focused on preserving nature and biodiversity, will require companies to prove that products sold in the EU don´t contain commodities produced from deforested land or unpleasant labor, and that is a build up into the EU Carbon Border Adjustment Mechanism #CBAM.For instance, food chain, most input come from emerging markets, where monitoring and reporting can be inconsistent, although efforts around new anti-deforestation and corporate due-diligence laws in the EU, in attempt to put traceability of commodities in front and center seem to be promising. The question is, how to ensure that emerging market suppliers comply with those regulations? https://lnkd.in/dT-YJpbr

ESG (Environmental, Social, and Governance) scores are changing the game for companies and investors navigating sustainability. 🌍 They provide insights into a company's impact but aren’t the whole story! 🔍 To truly understand a company's effect, combine ESG scores with other key metrics. Find out more here! 👇 https://lnkd.in/epnbHRJG #esg #sustainability #impactinvesting

𝐅𝐚𝐤𝐞 𝐠𝐨𝐨𝐝 𝐢𝐝𝐞𝐚𝐬 Borrowing a popular turn of phrase to describe this idea (reported in the item below) that GRI is considering creating 'standardized questionnaires for companies'. Say what?!? 😳 This idea runs counter to the transformation that is *finally* manifesting in how to get information from the source (= companies) to the users (= investors, bankers, large customers). 𝐓𝐡𝐞 𝐰𝐡𝐨𝐥𝐞 𝐩𝐨𝐢𝐧𝐭 𝐨𝐟 𝐫𝐞𝐠𝐮𝐥𝐚𝐭𝐞𝐝, 𝐬𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐢𝐳𝐞𝐝, 𝐚𝐮𝐝𝐢𝐭𝐞𝐝, 𝐚𝐧𝐝 𝐝𝐢𝐠𝐢𝐭𝐢𝐳𝐞𝐝 𝐝𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞𝐬 𝐢𝐬 𝐭𝐨 𝐦𝐚𝐤𝐞 𝐫𝐞𝐥𝐞𝐯𝐚𝐧𝐭 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐰𝐢𝐝𝐞𝐥𝐲 𝐚𝐯𝐚𝐢𝐥𝐚𝐛𝐥𝐞, 𝐜𝐨𝐦𝐩𝐚𝐫𝐚𝐛𝐥𝐞, 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐚𝐧𝐝 𝐞𝐚𝐬𝐢𝐥𝐲 𝐚𝐜𝐜𝐞𝐬𝐬𝐢𝐛𝐥𝐞. The goal is to go from a system of many-to-one (i.e. many entities sending different questionnaires to the same company) 𝐭𝐨 𝐚 𝐬𝐲𝐬𝐭𝐞𝐦 𝐨𝐟 𝐨𝐧𝐞-𝐭𝐨-𝐦𝐚𝐧𝐲 (i.e. one company producing a report for all entities to consume). The goal is therefore to get away from the proliferation of questionnaires that market forces had come up with to meet the rising ESG information needs, which had becoming unbearable for companies, because unscalable. For a standard setting body to consider creating questionnaires is... ridiculous. The only thing more ridiculous would be... to think that ESG professionals consider this welcome news. I have never met an ESG professional who thinks questionnaires are a good way to transfer information and would want more of them, rather than less. 🙄 Incidentally, the goal is to get sustainability disclosures to the same level of relevance, availability, comparability, reliability, and accessibility as financial disclosures. Do you know of anyone sending companies questionnaires to fill out with their financial results each year? 🤔 #sustainablefinance #capitalmarkets #continuousdisclosure #sustainabilityreporting #sustainabilitydisclosures #esg #esgdata https://lnkd.in/eX-cGe6y

As we look ahead to 2024, it's worthwhile to reflect on the progress made in #ESG in 2023. It was a landmark year where much of the ambiguity around ESG elements were removed, and adoption, use, regulation, and impact of ESG metrics increased substantially. Several regulations like SFDR settled in, and the launch of the ISSB standards built upon TCFD, CDSB, and SASB to add dimensions to ESG reporting frameworks, has provided more standardization globally. Aspects of the EU Green Deal are now being revisited, with concepts such as taxonomy criteria, starting to be adopted more widely around other regions, namely APAC. And strong attention was focused on California’s pivotal Climate Corporate Data Accountability and Climate-Related Financial Risk Acts. Despite political debates in the US, reputational exposure is a concern for all industries. We see companies seeking to improve ESG strategies by turning to well-reputed frameworks like SDG 17. With foundations set and increased airtime, “greenwashing” loopholes are being tightened in disclosure regimes. AI has started to play a role, so far trying to find its applications just like in other domains. ESG pillars have come into sharper focus. While Scores and Ratings provide indicative assessments, concrete ESG and sustainability use cases target specific KPIs. Market research has shown increasing acquisition of dedicated ESG datasets, particularly for Asset Management, fulfill regulatory requirements and investor demand. Climate risk modeling has been refined for financial services and as expected biodiversity's central role to other environmental and socio-economic goals, was substantiated after key industry events. With ambiguity removed and initial measures in place, 2023 set the stage. We can expect these exciting developments to continue to move ESG towards maturity in 2024. I welcome perspectives on key themes and milestones as the space continues maturing. What ESG aspects are you watching in 2024? #ESG #ClimateChange #Sustainability #Regulations GoldenSource

A recent Forbes article explores the complexities of navigating #Environmental, #Social, and #Governance (ESG) regulations, emphasizing the importance of data-driven traceability. It highlights the growing significance of #esg factors in #investment decisions and #corporate governance. The article argues that companies need robust data systems to track and report their ESG performance accurately. By implementing data-driven traceability solutions, businesses can enhance transparency, accountability, and credibility in their ESG #reporting. Ultimately, mastering ESG regulations and data management is crucial for companies seeking to thrive in an increasingly #sustainable and responsible #business landscape. https://lnkd.in/gK4D-6_3

Issues including more complex regulations, greater investor scrutiny and more advanced data management technologies are driving rapid changes in how companies handle ESG processes. Discover more from our ESG subject matter experts. #ESG #Sustainability #Environment #ESGReporting #weareULSolutions https://bit.ly/4dTFefc