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  • Writer's pictureGustavo Bernal Torres

Regulation in the US and the EU, Standards for Biodiversity and Stewardship, and GIFs

Source: Pixabay

Here are 5 ESG insights you might have missed this week:

1. SEC Plans to Force Public Companies to Disclose Greenhouse Gas Emissions-

  • From Coca-Cola to Tesla, companies report emissions in widely different ways. A new federal rule is expected to standardize climate disclosures, putting the U.S. on closer footing with other countries.

  • Under a groundbreaking new rule the SEC is expected to propose Monday, hundreds of businesses would be required to measure and disclose greenhouse gas emissions in a standardized way for the first time.

  • The move could mark the most sweeping overhaul of corporate disclosure rules in more than a decade, and could put the United States on closer footing with other countries set to begin mandated emissions reporting over the next three years.

  • Link to Source:

2. EU Member States Agree to Impose Carbon Tax-

  • The new measure will be applied to products imported into the European Union that do not meet EU climate standards in their production.

  • The agreement follows the proposal by the European Commission in July 2021 for a carbon border adjustment mechanism (CBAM), placing a carbon price on targeted products to avoid “carbon leakage,” a situation in which companies would move production to non-EU countries with less stringent environmental and climate policies.

  • The proposals rules followed a phased-in approach to implementing the CBAM system, initially applying it to a select number of goods with high carbon leakage risk, such as steel, iron, cement, fertilizers, aluminum, and electricity production. The proposed rules would see the system becoming fully operational in 2026.

  • Link to Source:

3. The TNFD Nature-Related Risk & Opportunity Management and Disclosure Framework-

  • The TNFD's draft framework is an important first-step in addressing the biodiversity crisis.

  • The TNFD framework seeks to provide recommendations and guidance on nature-related risks and opportunities relevant to a wide range of market participants, including investors, analysts, corporate executives and boards, regulators, stock exchanges and accounting firms.

  • The first beta version of the TNFD framework includes three core components: fundamental concepts and definitions, disclosure recommendations for nature-related risks and opportunities; and guidance for nature-related risk and opportunity assessment.

  • Link to Source:

4. Global Standard on Responsible Climate Lobbying Launches-

  • Investor statement of intent recognises crucial role of lobbying in global warming.

  • An investor group including BNP Paribas Asset Management, the Church of England Pensions Board and AP7 has launched a global standard on responsible climate lobbying to ensure companies’ lobbying and political engagement activities keep global warming within 1.5⁰C.

  • The standard consists of 14 policy and practice indicators that companies must adhere to on a comply or explain basis.

  • Adam Kanzer, head of stewardship, Americas at BNP Paribas said: “We must ensure that we are all rowing in the same direction. Corporate lobbying that is misaligned with the 1.5°C goal of the Paris Agreement is not simply a waste of corporate assets, it is a common threat to our future.”

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5. Asset Owner Due Diligence Questionnaires-

  • The PRI has produced responsible investment due diligence questionnaires covering a range of asset classes.

  • The DDQs are tools which help asset owners assess investment managers’ approaches to responsible investment. The questions they contain have been developed in collaboration with asset owner and investment manager signatories.

  • Link to Source:

One more thing: A new visualization that went viral this week from Prof. Ed Hawkins from the University of Reading. He is best known for the Warming Stripes images.

Find the GIF here:

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The PRI has produced responsible investment due diligence questionnaires covering a range of asset classes. The DDQs are tools which help asset owners assess investment managers’ approaches to respon

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