Science Based Targets initiative’s Post

ESMA published a summary of findings with respect to non-financial statements published by European non-financial undertakings listed on regulated markets in 2022. In this document, ESMA evaluated the quality of the disclosures resulting from the Taxonomy requirements. https://lnkd.in/g3fKMEv3

On March 6, 2024, the U.S. Securities and Exchange Commission adopted by a 3-2 vote a series of new and extensive disclosure rules that will require all registered companies, including FPIs, to include detailed climate-related information in their registration statements and periodic reports, and climate-related financial statement metrics in a note to their audited financial statements. Read more in this #GTAlert written by Arthur Don, Barbara A. Jones, David Mandelbaum and Marc Rossell: https://buff.ly/4ceyxDV. #ESG #Environmental #CapitalMarkets

Last week ASIC's Chair's keynote speech was first time that ASIC has spoken at length on the forthcoming mandatory climate-related financial reporting. Key points: - Until legislation and sustainability standards are final, ASIC continues to encourage listed companies to report voluntarily under the recommendations of the TCFD – a position held since 2018. - ASIC encourages entities to start developing the necessary organisational and governance structures to support future reporting requirements, including any additional sustainability-related topics that may be introduced in future years. - ASIC will develop and issue regulatory guidance on climate-related financial disclosures. - ASIC reviews climate and sustainability disclosures made by entities in financial reports as part of our annual financial reporting surveillance program. ASIC will use this program to monitor progress and market practice in this area before and during the implementation of the mandatory regime. It will also undertake proactive surveillance of the first reporters, the largest firms, to identify any learnings that we can share for the benefit of the entire market. https://lnkd.in/gJmrixt6

This is progress

There is growing demand from investors for more comprehensive information on the impact of climate-related matters. They’re expecting a company’s financial statements, management discussion and analysis (MD&A) and sustainability-related disclosures, all to provide a coherent, connected and integrated picture of the risks and opportunities facing the business. Read more about it in our 2023 climate-related disclosure benchmarking analysis which covers 47 major insurers. It focuses on 5 key areas: financial reporting, financed and insurance-associated emissions, transition plans, nature-related disclosures and assurance. https://lnkd.in/dS3eA_eb

With the new SEC rules on emission disclosure coming into effect, 40% of the 7,000 U.S. public companies will need to measure and disclose their Scope 1 and 2 emissions. Transparent disclosure of emissions can help attract investments from ESG-focused funds and benefit a firm from favorable government policies. # ESG #KPMGValueCreation #KPMGElevate

This is pretty big news! The Taskforce on Nature-related Financial Disclosures (TNFD) recommendations are based on the experience of the FSB Task Force on Climate-related Financial Disclosures (TCFD) (now part of the International Sustainability Standards Board (ISSB). One of the more interesting points about those recommendations is their comprehensiveness. This is no mere 'spreadsheet' exercise. It starts with governance and then calls out organizational strategy and risk/impact measurement. From the TNFD website (https://lnkd.in/g7xsBAnJ:) Governance: disclose the organization’s governance of nature-related dependencies, impacts, risks and opportunities. Strategy: disclose the effects of the nature-related dependencies, impacts, risks and opportunities on the organization’s business model strategy and financial planning (where material) Risk & impact management: describe the processes used by the organization to identify, assess, prioritize, and monitor nature-related dependencies, impacts, risk and opportunities Metrics & targets: disclose the metrics and targets used to assess and manage material nature-related dependencies, impacts, risks and opportunities. Thank you Mindy Lubber et al at Ceres, Inc. We know you are but one group, but critical to the success of this effort. #CERES #ESG #Sustainability #TNFD #TCFD #ISSB

European Financial Reporting Advisory Group and Taskforce on Nature-related Financial Disclosures sign a cooperation agreement to advance nature-related corporate reporting The European Financial Reporting Advisory Group (EFRAG) and the Taskforce on Nature-related Financial Disclosures (TNFD) have announced the signing of a cooperation agreement, highlighting the importance of addressing nature-related issues to advance corporate sustainability and reflecting a shared commitment to enhance corporate transparency related to biodiversity and ecosystems. The cooperation agreement builds on a multi-year collaboration reflected in the European Sustainability Reporting Standards adopted by the European Commission in July 2023, which are aligned with the TNFD's recommended disclosures. Both the TNFD disclosure recommendations and the European Sustainability Reporting Standards reporting areas are organised around the four pillars of the disclosure recommendations of the Task Force on Climate-related Financial Disclosures (TCFD): Governance, Strategy, Risk and Impact Management and Metrics and Targets. TNFD and European Sustainability Reporting Standards put high emphasis on the need to disclose on nature-related impacts, risks and opportunities, as well as dependencies from nature to the extent they generate material risks. The European Sustainability Reporting Standards require its disclosures to be based on a double materiality principle. The TNFD framework has been designed to accommodate an impact materiality perspective, facilitating alignment with the European Sustainability Reporting Standards. This is a polite way of saying the two entities disagree on the scope of materiality reporting, but the TNFD’s approach is nested within the European Sustainability Reporting Standards, so no conflict exists between the two sets of standards. As a next step, EFRAG and the TNFD are working on the finalisation of a detailed interoperability mapping illustrating the high level of commonality achieved, to be published early 2024. ___________________________ Task Force on Nature-related Financial Disclosure - https://tnfd.global/ EFRAG (December 12, 2023). EFRAG and TFND sign a cooperation agreement to further advance Nature-related reporting. https://lnkd.in/eU7kTHjc

More ways to keep us accountants gainfully employed - triple bottom line accounting

ESG reporting in Switzerland: an initial assessment, one year in Annette Weber of Advestra addresses the key questions concerning the new Swiss requirement for certain companies to provide annual reports on non-financial matters http://spr.ly/6046Z5Pta