ESG Professionals Network’s Post

Celebrating a milestone as we embark on the third year of our ESG-reporting journey! 🌱 It's heartening to see the significant strides being made by companies across APAC, including Kaer, in disclosing climate-related metrics to employees and stakeholders https://lnkd.in/ggVg_GZc. #coolingasaservice #caas #digitaltransformation #innovation #sustainability

It seems that Swiss climate legislation is not slowing down in 2025 On Friday, the Swiss Federal Council launched a public consultation on proposed amendments to the Swiss Climate Reporting Ordinance. This ordinance, which came into force earlier this year, specifies companies’ requirements to report on climate matters. In-scope companies must start making climate-related disclosures based on the TCFD recommendations in their 2024 financial reports (to be published in 2025). The proposed revision aims to align Swiss rules with evolving international standards. Key updates include: 🔹 Allowing companies to meet their reporting obligations by following internationally recognized standards, such as the ISSB framework, or the ESRS (EU sustainability reporting standard). 🔹 Requiring companies to include a roadmap in their reports, detailing how they plan to achieve net-zero emissions by 2050, in line with the new Climate and Innovation Act (see https://lnkd.in/gjXczRwS for more information) 🔹 Specifying minimum requirements for roadmaps of financial sector companies to guide financial flows in a climate-responsible way. These include quantitative, asset class- and sector-specific, science-based reduction targets, along with measurable interim targets for all relevant greenhouse gas emissions. The public consultation will run until 21 March 2025, with the revised ordinance expected to take effect in 2026. See the official press release and consultation documents here: https://lnkd.in/gUmmRyw3 👉 Follow me for more insights on ESG, climate, and sustainability in Switzerland.

Our take on the ASIC speech on climate disclosures. Main takeaways from the speech. * This is here and not going away. * 6000 companies immediately in scope. * This is just the beginning so get started now * Build Capacity. * Next comes biodiversity The big problems that this creates. 1. Capacity 2. Budget 3. However Meaningful Outcomes 4. Creating real business value from the exercise. Clima has you covered with its solution designed to tackle these challenges with confidence. There is no such thing as a stupid question but there is such a thing as a stupid answer. Put control of your net zero plans back in your hands with a Clima partnership today. Your customers care so you should too. With the most compelling end-to-end solutions in the net-zero space we have partnered with some of Australia's most respected companies to deliver a second-to-none offering across the transition supply chain. Consistency of outstanding outcomes. https://lnkd.in/gvUJvxRp

📢 Major Climate Disclosure Update for the Evening Checkout: EFRAG 𝐑𝐞𝐥𝐞𝐚𝐬𝐞𝐬 𝐃𝐫𝐚𝐟𝐭 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞 𝐨𝐧 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐓𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧 𝐏𝐥𝐚𝐧𝐬 𝐟𝐨𝐫 𝐂𝐒𝐑𝐃 🌍 EFRAG has published its long-awaited draft guidance for CSRD-aligned climate transition plans. Here’s the Update: ➡️ Essentials: What is a Climate Transition Plan under ESRS E1-1? - The climate transition plan, defined in ESRS E1-1, is a comprehensive roadmap to decarbonization, detailing targets, policies, and financial resources committed to aligning business activities with the 1.5°C target of the Paris Agreement and achieving climate neutrality by latest 2050. - Disclosures will need to show how actions and investments link directly to credible, science-based targets. ➡️ No Alignment: TPT Framework, only as Influenec - EFRAG decided against aligning its guidance with the Transition Plan Taskforce (TPT) framework widely used in International Sustainability Standards Board (ISSB). This decision, though anticipated, could complicate reporting for global companies. - However, EFRAG’s guidance reflects TPT principles in sections like financial planning, suggesting some cross-framework consistency. ➡️ Strict Stance: No Carbon Credits for 'Decarbonization' - EFRAG’s position is clear --> carbon credits or removals won’t count toward meeting climate targets in CSRD-aligned transition plans. - This decision emphasizes a direct, emissions-reduction approach, encouraging companies to focus on absolute emissions cuts within their operations and along the entire supply chain. ➡️ Key Benchmarking: Against Reference Target Values (RTVs) - To enhance transparency, EFRAG’s guidance includes the use of reference target values (RTVs) — specific GHG reduction benchmarks that align with the 1.5°C pathway. - Companies will need to disclose how their emissions targets match these RTVs, making it clear whether their decarbonization goals are scientifically compatible with climate targets. Before we will think later only about the U.S. election, what's important? - EFRAG’s draft is an important step for businesses that have set climate targtes and reach for best practices how to meet those aligned with leading reporting standards. - The draft would align #CSRD #ClimateTransitionPlans & #ParisAgreement What are your thoughts?

Which phase of the net zero policy sequence is your country in? Investigation? Directed Technical Change? Cost minimization? -- My feeling is that most developed governments are at a transition point where they are moving from 'investigation & commitment making' to 'directed technical change' and that if we make this transition, we could observe a period of accelerated decarbonisation. What is it about the incumbent system that might stall this though? Authors of this recent excellent Nature Paper argue that the approach governments usually take to financial policy are insufficient for meeting net zero: Governments typically put in place policies that stack on top of eachother, using cost benefit analysis to re-adjust policies as they go. The authors argue this will not deliver us into the next phases of net zero, if policy iteratation is captured by special interests or shifting political priorities, and that instead we need a 'Backwards Inductive Approach", working from government net zero targets to drive the needed investment certainty. This approach can still manage cost benefit analysis and uncertainties but *within* a decarbonisation pathway range to get us to net zero and ensure private investment certainty within that range along the way. All this suggests the importance of Climate Change Act / Framework Legislation in which Governments hold their own future governments to account for plans set out towards net zero. It also suggests the importance of milestones / targets built into policy packages, like 'phase out of ICE vehicles'. What do you think? Check out the full article here: Dolphin, G., Pahle, M., Burtraw, D. et al. A net-zero target compels a backward induction approach to climate policy. Nat. Clim. Chang. 13, 1033–1041 (2023). https://lnkd.in/gXeGkdrt https://lnkd.in/g6xKE4sb

After years of anticipation, the SEC finally unveiled its long-awaited Climate Rule. The regulation, which is intended to enhance climate-related disclosures, requires registrants to report on climate risks and mitigation strategies. With the exclusion of Scope 3 emissions reporting, many question its effectiveness in holding companies to account on their net-zero commitments. Despite discontent from those in the ESG community, the rule signifies progress in some areas of climate governance. As you navigate the ever-evolving landscape, robust voluntary disclosures and international frameworks remain critical in steering your organization’s climate accountability. Read our blog for an in-depth look at the SEC Climate Rule. 👇 #SEC #ClimateRule #Scope3 #ESG #ClimateGovernance

Assessing corporate climate action: Corporate climate policies and company-level emission reductions - PLOS Climate: Private investment decisions are expected to play a decisive role in redirecting capital flows in line with the Paris Agreement. The financial sector and policymakers have emphasized the role of corporate climate action and climate-related disclosure, including backward-looking emissions figures and forward-looking information on corporate climate policies to enable investors to reallocate capital to firms with promising emission reduction pathways. However, there is at best inconclusive evidence on the relationship between corporate climate policies and subsequent company-level emission reductions. Previous research was limited by small sample sizes and short observation periods, impeding the analysis of time-lagged effects or the inclusion of company-level fixed effects. To overcome these shortcomings, we draw on a new dataset with 17,198 observations from 1,749 companies that disclosed their corporate climate policies between 2010 and 2022. While our results show only a weak link between individual policies and company-level emissions, we find some evidence for an improved climate performance for absolute emissions for companies that introduced a comprehensive corporate climate policy mix. This is in line with public policy research that has found comprehensiveness to be an important dimension for public policy mixes and emphasizes the role of a mix of corporate climate policies rather than relying on individual measures. https://lnkd.in/e3Brcjzz

While the SEC ruling on climate related data disclosures is arguably not comprehensive enough , it can still improve the availability of standardized, material climate data. There is a significant reporting gap between US listed companies and those in other developed markets. According to MSCI, 73% of listed companies in developed markets outside the US report Scope 1-2 emissions, whereas only 45% of US listed companies do so. #esg #sustainability #climatedata #sustainabilityreporting #esgdata

In a synthesis report released as part of the new research papers, SBTi highlighted studies that suggested that “various types of carbon credits are ineffective in delivering their intended mitigation outcomes.” Addressing the theme that carbon credits could help increase climate mitigation finance, the SBTi highlighted findings pointing to “clear risks to corporate use of carbon credits for the purpose of offsetting,” adding that it could have “the potential unintended effect of hindering the net-zero transformation and/or reducing climate finance.”

Climate Change Disclosure Rules & Other ESG Developments - After much anticipation, on March 6, 2024, the US Securities and Exchange Commission voted to adopt final rules that require reporting by public companies of climate change-related disclosure. While the final rules differ from the SEC’s controversial proposed rules in significant ways, the final rules are prescriptive, and require substantial new, additional disclosures. The SEC also remains focused on other ESG-related disclosures, including potentially misleading disclosures made by public companies and by funds, and these have been the focus of enforcement actions. Finally, there are a number of additional ESG-related proposed rules pending, which may be closer to being finalized now the climate-change disclosure rules have been adopted. Read our alert on the new rules, here. We also include a table with the text of Subpart 1500 of Regulation S-K and a table with the text of the revisions to Regulation S-X. Speakers Lawrence A. Cunningham Anna T. Pinedo Wednesday, April 3, 20241:00 p.m. – 2:00 p.m. ESTRegister Here >> The post Climate Change Disclosure Rules & Other ESG Developments appeared first on Eye on ESG. After much anticipation, on March 6, 2024, the US Securities and Exchange Commission voted to adopt final rules that require reporting by public companies of climate change-related disclosure. While the final rules differ from the SEC’s controversial proposed rules in significant ways, the final rules are prescriptive, and require substantial new, additional disclosures. The SEC also remains focused on other ESG-related disclosures, including potentially misleading disclosures made by public companies and by funds, and these have been the focus of enforcement actions. Finally, there are a number of additional ESG-related proposed rules pending, which may be closer to being finalized... https://lnkd.in/gEwyJiFf