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Financial Reporting & Assurance Standards Canada is now consulting on the exposure drafts below prepared by Canadian Sustainability Standards Board (CSSB) developed for Canadian market based on #ISSB's IFRS-1 and IFRS-2: 1. “CSDS 1, General Requirements for Disclosure of Sustainability-related Financial Information”; and 2. “CSDS 2, Climate-related Disclosures.” A webinar will be hosted by #CSSB on April 10th if you would like to learn more about the disclosures. Register from ⬇ In terms of timelines, it is expected these drafts to be finalized by Q4 2024, and present to the public by January 1, 2025 for voluntarily reporting.

EFRAG publishes Compilation of Explanations for the #ESRS 📄✨ #EFRAG has compiled their explanations released between January and July 2024 into one document. 💡 This summary addresses practitioners' questions collected through the ESRS Q&A Platform, offering valuable insights for implementation. 📚 The explanations cover a wide range of topics, including the categories of ESRS standards, double materiality, and the structure of sustainability statements, as well as detailed answers on the topical standards: #Environment (E1-E5), #Social (S1-S4), and #Governance (G1). 💡 The Compilation of Explanations mirrors the structure of the ESRS, highlighting which part each answer refers to and providing practical guidance. 👉 Check out our blog post for more information on the ESRS: https://lnkd.in/eFkaTr3s #ESRS #CSRD #Sustainability #ESG #Guidance #Compliance #DataManagement

🌱 European Council and European Parliament reached a provisional agreement at the beginning of February on a proposal for a regulation on #ESG rating activities. The key objectives of the proposal are the following: 🔹 promoting transparency, independence and accountability in relation to rating agencies; 🔹 introducing authorisation requirements for the rating providers, as well as introducing organisational and transparency guidelines; 🔹establishing disclosure and record-keeping requirements for the rating providers; and 🔹establishing operational limitations for the service providers. 🌍 It is worth mentioning, that the proposal foresees that separate E, S and G ratings shall be provided rather than a single ESG metric that aggregates those three aspects. ❄ ... and, if an ESG rating covers the "E" factor, information will also need to be provided on whether that rating takes into account the alignment with the Paris Agreement or any other relevant international agreements. ✖ Double materiality is also in the focus for rating providers. An ESG rating agency should explicitly disclose whether the delivered rating addresses both material financial risk to the rated entity and the material impact of the rated entity on the ESG factors. ❗ As we lawyers love to say - the devil lies in the details. There is plenty to pay attention prior to the proposal taking its final form. There are still discussions going on what exactly should fall under the "ESG rating" definition - hence the exact scope of services that would fall under the regulation may not be finalised yet. Moreover, the European Commission initially proposed that the methodologies used shall not be regulated and harmonised by the new set of rules. Whether or not this proposal survives is another key aspect to pay attention. ⌛The provisional agreement will require approval by both the European Council and the Parliament before going through a formal adoption procedure. It is expected that the regulation will then start applying 18 months after its entry into force. #sustainability #esgratings #sustainablefinance

The IFRS Foundation and EFRAG have collaborated to release guidance material showcasing the alignment between International Sustainability Standards Board (ISSB) Standards and ESRS, empowering companies to effectively apply both sets of standards, particularly focusing on climate-related disclosures. This represents a significant step towards simplifying compliance processes and enhancing transparency in sustainability reporting. XBRL International, Inc. is also making strides in facilitating these standards alignments. Through the creation of mechanisms that enable ISSB and EFRAG taxonomies to align, XBRL International is paving the way for interoperability in reporting. One such mechanism is the mapping between taxonomies, ensuring comparability of disclosures reported against different standards. This mapping, known as concordance, allows for seamless integration of sustainability data across different taxonomies. At CoreFiling, we fully support these standard alignments and are closely monitoring all XBRL International technical developments. This ensures that our applications and True North platform are primed and ready to assist our clients and partners in navigating the evolving landscape of ESG reporting. Let's embrace these advancements together and pave the way for a more transparent and sustainable future! https://lnkd.in/dRZjrA3 #esrs #xbrl #esg #sustainabilityreporting #transparecy #csrd

Get in a contact if you would like to discuss how CoreFiling can assist you with tagging for CRSD. #csrd #esg #tagging #xbrl

Another landmark document available during #nycclimateweek— an application guide for #IFRSS1 and #IFRSS2 for companies voluntarily adopting it in countries where it is not already #mandatory. Excited to see the International Sustainability Standards Board (ISSB) take such an important step forward! #voluntaryreporting #climatereporting #climatedisclosure https://lnkd.in/e8TrVzcu

On 18 June 2024, the European Supervisory Authorities (EBA, EIOPA, and ESMA) proposed comprehensive changes to the Sustainable Finance Disclosure Regulation (SFDR), aiming to simplify the framework and improve clarity for consumers. The key changes include: - New Product Categories: The existing Article 8 and 9 fund classifications will be replaced with two new categories: the "sustainable" product category and the "transition" product category. This change aims to provide clear and objective criteria to distinguish financial products, reducing the risk of greenwashing. - Sustainability Grading Scale: A new grading scale from A to E for sustainability characteristics of financial products has been proposed. This standard method will allow investors to better measure and compare the sustainability features of various financial products, enhancing transparency and understanding. - Alignment of Sustainable Investment Definitions: The ESAs suggest aligning the definition of sustainable investments in the SFDR with the Taxonomy Regulation to ensure consistency and clarity across regulatory frameworks. - Simplified Disclosures: To improve consumer understanding and reduce complexity, the ESAs propose simplifying how sustainability disclosures are presented. This includes clear labeling for products outside the two main categories to avoid greenwashing and ensure that consumers can easily understand the sustainability features of their investments. The ESAs' joint opinion includes several detailed recommendations for the European Commission: - Product Classification System: Introducing a simple and clear product classification system based on regulatory categories and/or sustainability indicators to help consumers navigate the diverse selection of sustainable products. - Sustainability Indicator: Implementing a sustainability indicator that reflects both environmental and social sustainability aspects, providing investors with a clear view of a product’s sustainability features. - Improving Sustainable Investment Definitions: Revisiting and aligning the definitions of "sustainable investment" between the SFDR and the EU Taxonomy to eliminate confusion and ensure consistency. - Enhanced Disclosures: Simplifying and improving sustainability disclosures to cater to different investor needs, ensuring that essential information is readily accessible, particularly for retail investors. - Scope of SFDR: Assessing whether additional products should fall under the scope of SFDR to harmonize disclosures across all relevant financial products. These proposed changes are in line with efforts to enhance regulatory frameworks similar to the UK's Sustainable Disclosure Requirements (SDR), aiming at bringing more clarity to the investors. #Sustainablefinance #ESGfinance #SFDR #antigreenwashing

Soon entities will be required to report under Chapter 2M of the Corporations Act 2001 their sustainability performance: The Australian Accounting Standards Board (AASB) unveiled its Exposure Draft ED SR1 Australian Sustainability Reporting Standards – Disclosure of Climate-related Financial Information, proposing vital climate-related financial disclosure requirements. Rooted in international standards like IFRS S1 and IFRS S2, the two draft Australian Sustainability Reporting Standards aim to provide much-needed clarity for disclosing entities in the Australian market. Open for public comment until March 1, 2024, these standards mark a crucial step towards standardized reporting, prompting disclosing entities and insurers to strategically navigate key considerations before their imminent introduction. This transformative initiative signifies the AASB's commitment to fostering transparency, sustainability, and accountability in corporate financial reporting.

I'd like to share that I've received a new certification: CSRD Fundamentals from the company CSRD Institute! From January 1, 2024, Europe-based companies that were already following the Non-Financial Reporting Directive (NFRD) will need to adopt the Corporate Sustainability Reporting Directive (CSRD), a new EU directive for corporate sustainability reporting. CSRD aims to increase the breadth of non-financial information disclosed by organizations, ensuring consistency, relevance, comparability, and easy access. Companies must report sustainability information using the European Sustainability Reporting Standards (ESRS), which cover qualitative, quantitative, forward-looking and retrospective topics about their value chains and short-, medium- and long-term horizons. Adoption is divided into stages, with mandatory disclosure starting in 2025 for companies that have already adopted NFRD, including limited assurance... CSRD Institute #CSRD #ESRS

On March 6, the SEC adopted rules that will require most U.S. reporting companies to disclose detailed climate-related information in annual reports and registration statements. The rules will not apply to Canadian companies that report under the multijurisdictional disclosure system. This contrasts with a Canadian issuer planning to go public in the U.S. who is not eligible to use the MJDS system, where a company will be required to provide climate-related disclosures in its initial SEC registration statement and its annual reports thereafter. Additionally, on March 13, the Canadian Sustainability Standards Board (CSSB) published its proposed climate-related disclosure standards which are based on the IFRS S2 climate-change-related disclosure standards published by the International Sustainability Standards Board in 2023. Learn more about the details in our bulletin: https://bit.ly/48ZHGh7 #ESG #climatechange #advisory #boardadvisory #governance #regulatory #capitalmarkets David Forrester | Andrew Beck | Mile Kurta | Chris Bornhorst | Rima Ramchandani | Adam Ibrahim