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Dec 4 2024 #assurance, #climate, #compliance, #environment, #esg
EU’s New Carbon Removal Certification Regulation
Early last month, the European Parliament approved a regulation for a certification framework for permanent carbon removals, carbon farming and carbon storage in products. The regulation provides key definitions and a framework for how EU states are to develop a...
Dec 4 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #guest-post, #human-rights, #investors, #social, #supply-chain
Guest Post: Driving Sustainability With “Emotional Bank Accounts”
[Ed. Note: This blog was written by Andrea Viera, Senior Sustainability Analyst at hospitality investment and management firm Highgate. Her perspective is that of someone new to the sustainability profession.] In my first week as a sustainability professional, I uncovered...
Dec 4 2024 #climate, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
JPMorgan Moves From Transition Economy To “Fundamentals of Financial Logic”
File this one under “Yes, Virginia – business fundamentals matter.” Bloomberg reported that JPMorgan isn’t interested in pursuing transition finance: “Linda French, JPMorgan’s global head of sustainability policy and regulation, says it’s far from clear that calling something a transition...
Dec 3 2024 #climate, #compliance, #environment, #esg, #investors
States’ Climate-Based Antitrust Suit Threatens Other Sustainability Efforts
The day before Thanksgiving, eleven states’ Attorneys General filed suit against BlackRock, Vanguard and State Street, claiming the firms violated antitrust laws through climate activism that reduced coal production and drove up energy prices. According to the press release from...
Dec 3 2024 #climate, #compliance, #environment, #esg, #investors, #supply-chain
It’s Getting Real – AI Growth Puts Power Supply Chain Climate Goals at Risk
Still talking about coal-based power generation … Last Spring, we warned that the growth of AI imperiled Scope 2 climate goals for pretty much everyone. Bloomberg wrote about it just before Thanksgiving – with more urgency: “… the surprising growth...
Dec 3 2024 #climate, #compliance, #environment, #esg, #investors, #supply-chain
The Murky Future of Coal Power in the G7
This isn’t particularly new news but I thought it was worth looking back to given my other blogs of the day. Even though Texas coal-based power generation has experienced a downturn, the same doesn’t hold true elsewhere. In April, the...
Nov 27 2024 #assurance, #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
Here’s a Turkey of a Blog
It’s a bit of a tradition at CCRcorp to post lighthearted blogs immediately before a holiday (Thanksgiving in the US). John, Meredith, Julie and I had quite the conversation last week about John’s spatchcock turkey recipe. I’m not much in...
Nov 26 2024 #climate, #environment, #esg, #supply-chain
Two Things in One Study: Carbon Offsets Don’t Deliver & A Method for Offset Due Diligence
A new scientific study published in Nature Communications earlier this month covering “almost 1 billion tons of CO2e” largely discredits carbon crediting mechanisms. While the term “credit” is used throughout, the study is actually limited to “voluntary, project-based activities that...
Nov 26 2024 #climate, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
Hidden Reasons For Diminished Executive Support of ESG/Sustainability
A few years ago, “ESG” was shiniest new object that captured the attention of business leaders. Today, AI sparkles above all else and ESG/sustainability seem to be tarnishing. The change should have been expected as a normal cycle of business...
Nov 21 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
Do Double Materiality Assessments Violate SEC Regulations?
Last month, an interesting question was posed on our Q&A Forum of importance to anyone conducting double materiality assessments (DMAs). DMAs involve communicating with stakeholders on their views of the importance of myriad ESG topics. Shareholders/investors are, of course, one...
Nov 21 2024 #climate, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
McKinsey’s CEO Checklist Gives Context to ESG/Sustainability
Much of the success of corporate ESG/sustainability programs and achievements hinges on how those connect with the company strategy – and the CEO’s vision and goals. I write a good deal about this, and PracticalESG.com’s content emphasizes that as well....
Nov 21 2024 #climate, #compliance, #environment, #esg, #human-rights, #investors, #social, #supply-chain
New This Week on PracticalESG.com
This week’s notable additions and new resources for members: New Q&A: Shareholder proposal for a Board Committee on Decarbonization – is this a thing? Document of the week: The new ISO Framework for implementing environmental, social and governance (ESG) principles...
Nov 20 2024 #climate, #compliance, #environment, #esg, #investors
The New Future of Greenwashing Enforcement
The question of where the SEC stands on ESG has been difficult to answer. Back in September, the SEC quietly dissolved their ESG taskforce, leaving many to wonder if ESG enforcement was no longer a priority at the agency. Despite...
Nov 20 2024 #climate, #environment, #esg, #investors, #social
Ford Drives B2B Sustainability Gains
Cue the automotive and EV puns… Last month, I wrote about differences between sustainability value propositions for B2B and B2C relationships. Trellis (formerly GreenBiz) recently provided an example of these differences and pivoting strategies. According to the article: “In September,...
Nov 20 2024 #assurance, #climate, #compliance, #environment, #esg, #investors, #social, #supply-chain
It Was a Big Week for Climate Disclosure News
Last week saw several important reports published about climate disclosures, most likely timed for COP29: The 2024 EY Global Climate Action Barometer. Among its key findings – “While most of the companies are aware of the physical risks they face...
Nov 19 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
Accidental Disclosure: A Real Risk for ESG/Sustainability
Last week, Matt Levine told a story about how far some investors will go (legally) to find hidden information about a company and what is behind numbers companies publish. Investors, he said, seek “that sweet spot of information that is...
Nov 19 2024 #climate, #compliance, #environment, #esg, #investors, #social, #supply-chain
Don’t Say You Aren’t Doing ESG But Don’t Say You Are. Are We Clear?
As long as we’re on Matt Levine’s commentary on disclosures… I feel like we are getting into multiples of double negatives which isn’t helpful. Last week, Levine also offered up a view on how the SEC’s Invesco enforcement case could...
Nov 19 2024 #climate, #compliance, #environment, #esg, #investors, #supply-chain
Seminal Dutch Shell Case Overturned
In 2021, a landmark case was decided in the Netherlands holding that Shell plc (formerly Royal Dutch Shell plc) owed a duty of care under Dutch tort law to reduce its CO2 emissions by 45% by 2030 compared to 2019...
Nov 14 2024 #diversity, #equity, #esg, #investors, #social
Oh Deere Redux: John Deere Fights DEI Shareholder Proposal
This summer, John Deere sent shockwaves through the ESG world by axing it’s DEI programs due to a public pressure campaign waged on social media. However, in responding to one stakeholder, others felt jilted, including activist fund “As You Sow”-...
Nov 14 2024 #climate, #compliance, #environment, #esg, #investors, #supply-chain
New This Week on PracticalESG.com
This week’s notable additions and new resources for members: New Q&A: How do you find out which ESG disclosure frameworks shareholders prefer? New Guidebook: Generic Climate Change Sample Disclosure – A framework and jurisdiction-agnostic sample climate disclosure covering governance, GHG...
Nov 14 2024 #assurance, #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
Sustainability Budget Tightening or Uncertain? How We Can Help
Facing a smaller ESG/sustainability budget while having to manage more than ever? Under pressure to show the ROI on program expenses? Need to efficiently draft ESG/sustainability disclosures for your company or clients? Looking to reduce the time you spend searching...
Nov 13 2024 #climate, #compliance, #environment, #esg, #investors
EFRAG Gives First Look at Non-EU Parent Company Disclosure Standards
The EU’s Corporate Sustainability Reporting Directive (CSRD) is a massive piece of disclosure legislation that sustainability professionals are struggling to wrap their heads around. Even as we work to understand and comply with the current European Sustainability Reporting Standards (ESRS),...
Nov 13 2024 #compliance, #esg, #investors
SEC’s Newest ESG Enforcement Includes $17.5 Million Fine
The dominoes are falling. The SEC issued their latest enforcement action against an investment advisor for not living up to its marketing and explicit commitments to ESG investment strategies. Last week, the SEC charged Atlanta-based charged Invesco Advisers, Inc. with...
Nov 13 2024 #climate, #compliance, #environment, #esg, #supply-chain
UN-Backed Carbon Offset Framework Approved at COP29
COP29 in Azerbaijan is off to quite a start. According to remarks from Yalchin Rafiyev, COP29 Lead Negotiator: “Parties reached consensus on the standards for Article 6.4 and a dynamic mechanism to update them… This will be a game-changing tool...
Nov 12 2024 #climate, #compliance, #environment, #esg, #investors, #supply-chain
California Climate Disclosure Laws Survive Early Court Hurdle
Washington D.C. will face drastic change in January. The SEC’s Climate-related Disclosure Rules already had an uphill battle in the 8th Circuit and the changing political regime all but guarantees its demise. However, that doesn’t mean its time to stop...
Nov 12 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
ESG/Sustainability Professionals – Just Ignore the Election Results
I intentionally waited to publish this blog, even though I wrote it the morning after the US presidential election results were announced. There were enough immediate articles, news items and posts lamenting the results and wringing hands about the future...
Nov 12 2024 #climate, #environment, #esg, #supply-chain
Bees Sting Meta’s AI Climate Plans
There’s something of an irony here. According to Financial Times last week, Meta’s plans to “build an AI data centre in the US that runs on nuclear power were thwarted in part because a rare species of bee was discovered...
Nov 7 2024 #compliance, #esg, #investors
SEC Issues Risk Alert for Investment Companies, Includes ESG
Last month, I wrote about the SEC’s latest Exam Priorities for investment advisors and companies, broker-dealers, and a few other “market participants.” This includes registered investment companies (RICs), which consists of mutual funds and exchange-traded funds. In that blog, I...
Nov 7 2024 #climate, #environment, #esg, #social, #supply-chain
Sustainability Goals No Reason to Be Tone Deaf to the Market
I’m a car guy – I love the art and engineering in automobiles and even turn wrenches on mine (replete with busted knuckles, yelling and cursing). I’m not anti-EV by any means – I leased a 100% EV from 2015-2018...
Nov 7 2024 #climate, #compliance, #environment, #esg, #human-rights, #investors, #social, #supply-chain
New This Week on PracticalESG.com
This week’s notable additions and new resources for members: New Q&As: Lawrence provides insight into the future of emissions disclosures if the SEC’s Climate-Related Disclosures Rule is overturned. John clarifies specifics on the timing of GHG disclosures in company 10-Qs....
Nov 6 2024 #assurance, #climate, #compliance, #environment, #esg, #human-rights, #investors, #social, #supply-chain
Political Pressure Building in EU to Scale Back CSRD
The EU is arguably the world leader in sustainability legislation with the European Green Deal being at the forefront of global ESG regulations. However, passing and implementing environmental policy has not come without a political cost. This summer, right-wing candidates...
Nov 6 2024 #climate, #compliance, #environment, #esg, #supply-chain
New Insurance Available for Carbon Offset Fraud
It’s an interesting time for insurance in the voluntary carbon market (VCM). Yesterday, I wrote about concerns with VCM buffer pools, which act as a type of insurance for VCM buyers and project developers; last week, I blogged on considerations...
Nov 6 2024 #climate, #compliance, #environment, #esg, #investors, #supply-chain
Is an Alternative to Voluntary Offsets Coming?
Since we’re on the topic of offsets… It’s been a tough couple years for voluntary GHG offsets, what with claims of fraud, turmoil in market players and the rise in greenwashing claims. Even so, advocates argue that doing something about...
Nov 5 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
CSOs Need to Improve Their Credibility With CFOs
A new report from EY How can CFOs be confident in value creation without confidence in reporting? offers interesting perspectives based on new survey data. CFOs are doing more than they ever have – moving from purely managing numbers to...
Nov 5 2024 #assurance, #climate, #compliance, #environment, #esg, #supply-chain
More Offset Controversy – This Time, It’s Buffer Pools
The old saying goes “the only inevitable things are death and taxes.” These days, we should add “voluntary carbon offset controversy.” A new existential problem with the voluntary carbon market (VCM) rears up almost monthly. Bloomberg reported on a particularly...
Nov 5 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #investors, #social
Hidden Benefits of Materiality Assessments
Materiality assessments are at the center of many disclosure frameworks. These serve the obvious purpose of setting out the topics to be covered in company disclosures, but they may also have hidden benefits. A recent article in ESG Today discusses...
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- Investor Policies & Trends / Shareholder Activism & Engagement / Shareholder Proposals
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View all Subject Areas, including those spanning multiple disciplines, here.
Featured Q&A Members Only
Answering Questions about Shareholder Proposal Topic
If an institutional shareholder calls the company a few days before the annual meeting to ask questions about climate change policy and political spending (both the subject to shareholder proposals), and the company agrees to talk with them, can the company say more than is in the proxy statement (seems like the answer should be yes, or why have the conversation) and can the company direct the shareholder to publicly available information (e.g., sustainability report already on company website) w/o filing the information as additional soliciting material? Rule 14a-6(f) seems to support a conclusion that all of this should be permissible w/o any additional filing. If it matters, the company isn’t going to provide any material nonpublic information, they just want to be responsive.
12/2/2024, Question #25597
Shareholder Proposal – Committee on Decarbonization Risk
My company received a “Committee on Decarbonization Risk” shareholder proposal. Has anyone seen this proposal at other companies?
11/18/2024, Question #25477
Reporting to SEC if Climate Disclosure Rule is Vacated
If the SEC climate disclosure rule is overturned or vacated by the court, is it correct that companies will have no legal obligation to report on climate risk management matters to the SEC?
10/31/2024, Question #25193