Global CSR Trends That Encourage Transparency

🌍 Sustainability data is becoming infrastructure Sustainability data is no longer just about reporting, it’s becoming the backbone of how we price risk, allocate capital, and define value in the global economy. The pace of change in 2025 shows this shift is accelerating. 🔑 What’s driving it? EU CSRD/ESRS: Over 50,000 companies impacted; revisions underway but the core double materiality approach remains. ISSB S1 & S2: Rapid global adoption, setting a baseline for consistent, comparable reporting. California SB 253 & 261: Legal challenges failed; Scope 1–2 disclosures due 2026, Scope 3 by 2027. Australia: Mandatory climate reporting aligned with ISSB starting 2025. Brazil: CVM 193 brings IFRS-aligned disclosure, mandatory from 2026. India & China: BRSR Core and new CSDS standards push deeper into supply chains and carbon reporting. Nature & transition plans: The UK’s 2025 consultation on mandatory transition plans and the growing adoption of TNFD show that climate, nature, and resilience are converging. 🚨 Key challenges Assurance capacity, Scope 3 data quality, and policy uncertainty (like the paused SEC climate rule) remain hurdles. Yet global momentum is clear: transparency is being hardwired into financial systems. 🏢 Real estate signal: GRESB Reporting is raising the bar on verified energy, carbon, water, and waste data, pushing portfolios toward stronger governance and assurance. 💡 The takeaway: This isn’t just compliance. We’re witnessing the foundations of a smarter financial system that rewards resilience, transparency, and long-term value. Companies that prepare now with credible, standardized, assured data will be best positioned to thrive in the future. Let’s keep building! With rigor, ambition, and impact.

On 25 July 2024, the European Directive on corporate sustainability due diligence (Directive 2024/1760) entered into force. What is the goal of the CSDD? The aim of this Directive is to foster sustainable and responsible corporate behaviour in companies' operations and across their global value chains. It requires companies to evaluate their global value chains for potential environmental and human rights risks that could arise from their operations. Who is this relevant for? The directive applies to both EU and non-EU companies that operate in the EU, including subsidiaries and business partners. What areas does it cover? Risk-based systems Companies must establish systems to assess and address potential and actual adverse human rights and environmental impacts. Climate transition plans Companies must create plans that align with the Paris Agreement and set targets for reducing emissions and addressing climate change. Stakeholder engagement Companies must consult with affected parties, such as employees, communities, and civil society organizations, to ensure their voices are considered in the due diligence process. Remediation mechanisms Companies must establish or participate in effective processes to address any adverse impacts that occur, including setting up grievance mechanisms to provide access to remedies for affected individuals and communities. Wait, how does it relate to the CSDR? The CSDDD focuses on how companies manage sustainability risks in their operations and supply chains, while the CSRD focuses on how companies report and disclose that information to the public. Together, the directives are intended to create a sustainable and responsible business environment that promotes transparency and holds companies accountable for their impact on society and the environment. #esg #sustainability #climate #humanrights #reporting

🌍 Mind the Gap...Global impacts of the EU Green Deal regulations The #SFDR, #CSRD, and #CSDDD as part of the European #Greendeal serve distinct yet complementary roles in enhancing corporate accountability through sustainability disclosure, reporting, and due diligence processes. As we approach the third quarter of 2024, businesses need to gain insights into the Green Deal's direction for the next five years. After the recent European elections, a potential second term for Ursula von der Leyen could maintain a strong focus on the Green Deal, with an increased emphasis on its economic dimensions. Here is an overview 1️⃣ 𝗖𝗦𝗥𝗗 𝖢𝗈𝗋𝗉𝗈𝗋𝖺𝗍𝖾 𝖲𝗎𝗌𝗍𝖺𝗂𝗇𝖺𝖻𝗂𝗅𝗂𝗍𝗒 𝖱𝖾𝗉𝗈𝗋𝗍𝗂𝗇𝗀 𝖣𝗂𝗋𝖾𝖼𝗍𝗂𝗏𝖾 Disclosure of ESG metrics, e.g. Environmental: Climate change mitigation and adaptation, water conservation, resource use, pollution, and biodiversity. Social/ Human Rights: Equal treatment, #DEI metrics, working conditions. Governance: Internal controls mechanisms, risk management, Third-party risk management 2️⃣ 𝗦𝗙𝗗𝗥 𝖲𝗎𝗌𝗍𝖺𝗂𝗇𝖺𝖻𝗅𝖾 𝖥𝗂𝗇𝖺𝗇𝖼𝖾 𝖣𝗂𝗌𝖼𝗅𝗈𝗌𝗎𝗋𝖾 𝖱𝖾𝗀𝗎𝗅𝖺𝗍𝗂𝗈𝗇 Focus on transparency and preventing #greenwashing. Disclosure of negative ESG impacts, integration of ESG risks in decision-making and disclosure of remuneration policies in organizations. Impact of sustainability metrics on Fund- and Product Level and annual Principal Adverse Sustainability Impact Statements (PASIS). 3️⃣ 𝗖𝗦𝗗𝗗𝗗 𝖢𝗈𝗋𝗉𝗈𝗋𝖺𝗍𝖾 𝖲𝗎𝗌𝗍𝖺𝗂𝗇𝖺𝖻𝗂𝗅𝗂𝗍𝗒 𝖣𝗎𝖾 𝖣𝗂𝗅𝗂𝗀𝖾𝗇𝖼𝖾 𝖣𝗂𝗋𝖾𝖼𝗍𝗂𝗏𝖾 Active management and mitigation of adverse environmental and human rights impacts thorough due diligence processes of partners and suppliers, ensuring companies uphold both legal standards and ethical responsibilities along their #SupplyChain. #ESG #Sustainability #Compliance #taxonomy #CorporateResponsibility #sustainablebusiness #ESGStrategy #taxonomy Picture Source: https://lnkd.in/eaBtS2x7