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Nov 30 2023 #climate, #environment, #esg, #supply-chain
EU and Canada Form “Green Alliance”
The European Union and Canada are forming a “Green Alliance” according to a recent press release from the European Commission. Both jurisdictions will be creating joint policies aimed at cutting pollution, cutting methane emissions, collaborating on new hydrogen energy projects,...
Nov 30 2023 #climate, #environment, #esg, #investors, #social
Poll of Top 65 Investors Reveals ESG Trends
In spite of anti-ESG sentiment in the US, ESG continues to be a hot topic for investors around the world. A new survey from AQTION polled the world’s top 65 investors on ESG issues. The results show that investors are...
Nov 30 2023 #climate, #environment, #esg, #investors
Short Term, the Money is Against Renewables
An interesting take on the future of renewable energy – at least as some predict for the next 12 months or so: Net Zero Investor writes that “A growing number of hedge funds are now aggressively placing short bets against...
Nov 29 2023 #diversity, #equity, #esg, #human-rights, #social
Setting Up ERGs For Success
Employee Resource Groups (ERGs) are voluntary, employee-driven communities in the workplace to foster inclusivity, particularly for individuals with marginalized identities. Originating in the 1960s, the first ERG was established by Black workers at Xerox to address race-based tensions in their...
Nov 29 2023 #diversity, #equity, #esg
Do ERGs Harm or Help Workplace Inclusion?
Continuing on the theme of Employee Resource Groups… ERGs have become integral components of many DEI programs, demonstrating significant impact when effectively managed. They serve as strategic partners for organizations, aiding in the identification and resolution of workplace issues while...
Nov 28 2023 #climate, #diversity, #environment, #equity, #esg, #human-rights, #social, #supply-chain
Reducing Insurance Costs Through Climate Programs
Need ideas to show hard dollar business value of climate risk management efforts? CFO Dive just published an article with some practical suggestions for how CFOs can work with their climate and risk management teams to save on commercial property...
Nov 28 2023 #climate, #compliance, #environment, #esg
EU to Curb Methane Emissions
The European Commission recently announced that the EU Parliament and Council reached a provisional agreement on a new regulation to reduce methane emissions – a major contributor to climate change. The EU is looking to cut back on methane emissions...
Nov 28 2023 #climate, #esg, #social
Are Business Opportunities in the World’s Wealth and Emissions Differential?
Recently, I wrote briefly about a link between individual wealth and carbon footprints. A new study from Oxfam (along with a companion article in The Guardian) brings more color and depth of analysis to the matter – but a word...
Nov 27 2023 #climate, #environment, #esg, #investors, #supply-chain
Emissions Metrics Drastically Shift Climate Progress Picture
For those of you in the U.S., welcome back from the Thanksgiving break. Time to get back to it as we head into COP28 and the end of 2023. I’ll start here: I’ve never been a fan of the metric...
Nov 27 2023 #climate, #compliance, #diversity, #environment, #equity, #esg, #investors, #social
SEC’s ESG Enforcement in 2023
Maybe you saw SEC announced its enforcement actions in fiscal year 2023, which increased 3 percent over fiscal year 2022. Here is what they said about the ESG enforcement activity: ESG issues are increasingly important to investors, resulting in a...
Nov 27 2023 #diversity, #equity, #esg, #human-rights
New Podcast: Promoting DEI through Talent Management
A new podcast is now available. I talk with Jasmine Herbert, president of the Employee Handbook, Career & Workforce Solutions. Jasmine Herbert is a seasoned HR leader helping organizations optimize human capital. With over 15 years of experience, Jasmine has...
Nov 21 2023 #compliance, #diversity, #equity, #esg, #social
The Return-to-Office Mandate has Become a Fight for Disability Rights
[Ed. note: In observance of Thanksgiving in the US, no blogs will be published from tomorrow through Friday. We will be back next Monday. Happy Thanksgiving to everyone!] The return-to-office (RTO) conflict between workers and employers is intensifying, with more...
Nov 21 2023 #climate, #compliance, #environment, #esg, #investors
FRC Urges UK Companies to Consider “Holistic” Materiality
[Ed. note: In observance of Thanksgiving in the US, no blogs will be published from tomorrow through Friday. We will be back next Monday. Happy Thanksgiving to everyone!] The UK’s Financial Reporting Council (FRC) recently published an article on materiality....
Nov 21 2023 #climate, #esg
IRS Proposes EV Tax Credit Use at Point of Sale in 2024
[Ed. note: In observance of Thanksgiving in the US, no blogs will be published from tomorrow through Friday. We will be back next Monday. Happy Thanksgiving to everyone!] Changes are coming to the Inflation Reduction Act’s (IRA’s) electric vehicle tax...
Nov 20 2023 #assurance, #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
Legal Is Not the “Department of No” for ESG
I recently chatted with an in-house lawyer with a long history in working with internal sustainability/ESG departments. She told me about her experiences at PLI’s 55th Annual Institute on Securities Regulation in early November. One comment to her from an...
Nov 20 2023 #climate, #compliance, #environment, #esg, #supply-chain
California’s Carbon Offset Disclosure Probably Applies to You
California’s new AB1305 – the Voluntary Carbon Market Disclosures Act may not have captured as much attention as the state’s other new climate disclosure requirements, but it is still broadly applicable. Although the first part of the legislative language concerns...
Nov 20 2023 #compliance, #esg, #investors, #social
Hong Kong Moves Toward ESG Ratings Regulation
Hold on to your hats for a torrent of new abbreviations. Hong Kong’s Securities and Futures Commission (SFC) recently announced its support of an industry-led voluntary code of conduct for ESG ratings and data providers. The Voluntary Code of Conduct...
Nov 17 2023 #climate, #compliance, #environment, #esg, #investors, #supply-chain
EU Lawmakers Don’t Agree on CS3D
The EU’s Corporate Sustainability Due Diligence Directive (CS3D or CSDDD) is facing problems in its development. Lawmakers are not on the same page on major components of the law – including the scoping of financial services sectors and a provision...
Nov 17 2023 #assurance, #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
ISS Warns Companies Against Reducing ESG Disclosures
Over on TheCorporateCounsel.net last week, Meredith wrote about ISS announcing the results of its 2023 benchmark policy survey. ISS received responses from 239 investors and 216 non-investors, including public companies, board members and their advisors. “The results summary details a number of key findings...
Nov 17 2023 #diversity, #equity, #esg, #human-rights, #social
Is Feedback Bias Derailing Your DEI Goals?
Performance feedback serves as a crucial component of the employee experience, influencing motivation, engagement, and professional development. It plays a central role in shaping an individual’s career progression within an organization, offering insights into their performance, strengths, and areas for...
Nov 16 2023 #climate, #compliance, #environment, #esg, #investors, #social
CDP & EFRAG Cooperation May not Bear Fruit
Last week, we wrote that the CDP announced its cooperation with EFRAG for adapting its current system for disclosures to fully align with EFRAG. The reduction is disclosure frameworks and alphabet soup sure sounded good, but as Novisto’s Marie-Josée Privyk pointed out, perhaps...
Nov 16 2023 #esg, #investors
Sustainability-Linked Loans Face Greenwashing Risks
Sustainable finance is once again faced with the challenge of greenwashing risks as the sustainability-linked loans (SLL) market begins to cool. SLLs were first introduced in 2017 and have since grown into a $1.5 trillion market. SLLs are designed to...
Nov 16 2023 #environment, #investors
NYSE Natural Asset Company Comment Period Extended
The New York Stock Exchange (NYSE) is considering standards for a new type of company – Natural Asset Companies (NACs). The proposal is intended to create a new asset/investment classification for companies that actively manage, maintain, restore, and grow the...
Nov 15 2023 #climate, #environment, #esg, #human-rights, #social, #supply-chain
Human Rights Violations in Carbon Offset Projects
Piling on to the highly publicized problems at carbon project developer South Pole, Follow The Money uncovered a supply chain risk that should have been obvious, but was overlooked. The Bachu Biomass Project located in China’s Xinjiang Uyghur Autonomous Region...
Nov 15 2023 #compliance, #environment, #esg
French Banks Accused of Laundering Money from Illegal Deforestation
A group of NGOs filed a complaint with the French National Prosecutor’s Office, alleging that BNP Paribas, Credit Agricole, BPCE, and Axa all contribute to and profit from illegal deforestation in the Amazon. This differs from a “Complaint” in the...
Nov 15 2023 #diversity, #equity, #esg, #social
New Podcast: Bernard Guinyard on Leveling Up Cultural Dexterity for Managers
Our newest podcast is now available. I talk with Bernard Guinyard, a Diversity Business Partner at Meta (Facebook). Prior to Joining Meta he served as the head of Diversity Equity & Inclusion at the law firm Goodwin Procter. He has...
Nov 14 2023 #climate, #environment, #esg, #investors
Fossil Fuel Companies Banned from French SRI Funds
The French Ministry of the Economy and Finance has announced a series of changes to Socially Responsible Investments (SRIs), which are designed to facilitate sustainable investments. As part of these changes, almost 1,200 funds in France currently using the SRI...
Nov 14 2023 #compliance, #environment, #esg, #investors
Swiss Funds Drop “Sustainability” Under New Regulation
Governments around the world are looking to regulate sustainable investments. The EU Taxonomy and SFDR, the SEC’s new Fund Name Rule, and the UK’s developing green taxonomy all seek to bring clarity to the financial services sector and give more...
Nov 14 2023 #climate, #esg, #investors, #social, #supply-chain
Peak Oil in Sight? Not So Fast
We keep hearing that we are close to “peak oil” – the point when global demand and production of oil reach their maximums, after which both decline. For instance, Reuters wrote last month: “World fossil fuel demand is set to...
Nov 13 2023 #climate, #compliance, #environment, #esg, #investors
As You Sow Hit with Congressional Subpoena
Back in August, the House Committee on the Judiciary sent a request for documents to shareholder activist group As You Sow alleging that the group “appears to facilitate collusion that may violate U.S. antitrust law”. As You Sow ultimately declined...
Nov 13 2023 #climate, #compliance, #environment, #esg, #social, #supply-chain
Conflict Minerals Rule Could Guide SEC Climate Disclosure Reproposal
Last week, CIO Dive covered SEC Commissioner Mark Uyeda’s comments suggesting that the Commission re-propose the climate disclosure rule: “Before publishing a final version of any disclosure rule, the SEC should determine the full range of costs to a company...
Nov 13 2023 #assurance, #climate, #compliance, #environment, #esg, #supply-chain
Fifth Episode of Carbon Offset Podcast Series Available: More on Legal Risks
In the fifth in our series of podcasts Carbon Credits Today: Separating the Signal from the Noise, Haynes & Boone partner Phil Lookadoo discuss more views on legal risk in today’s carbon offset and disclosure world. We talk about: Members...
Nov 9 2023 #climate, #compliance, #environment, #equity, #esg, #investors
CDP and EFRAG Announce Cooperation Agreement
[Ed. note: In observance of Veteran’s Day, no blog will be published Friday. We’ll be back at it Monday.] While EFRAG may be sparring with the ISSB over materiality, other organizations are aligning with EFRAG’s standards. The CDP is the...
Nov 9 2023 #climate, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
More on (Dis)Trusting ESG Study Results
[Ed. note: In observance of Veteran’s Day, no blog will be published Friday. We’ll be back at it Monday.] I blogged earlier this week about the return of garbage economics in ESG/sustainability, primarily in new studies from both companies and...
Nov 9 2023 #assurance, #climate, #compliance, #environment, #esg, #investors, #supply-chain
Fourth Episode of Carbon Offset Podcast Series Available
[Ed. note: In observance of Veteran’s Day, no blog will be published Friday. We’ll be back at it Monday.] In the fourth in our series of podcasts Carbon Credits Today: Separating the Signal from the Noise, Kristen Sullivan and I...
Nov 8 2023 #climate, #compliance, #environment, #esg, #investors, #supply-chain
EU and UK Feel Relief From New Competition Guidance
The possibility of antitrust enforcement has induced some anxiety among the sustainability community. Sustainability and climate pacts often require companies to work with one another in a limited capacity – potentially pushing the envelope of antitrust laws. Lawmakers in the...
Nov 8 2023 #climate, #compliance, #environment, #esg, #investors
EU ESG Labelled Funds Not Well Aligned with Taxonomy
Recent research from Novethic revealed that 93% of ESG-labeled investment funds in the EU do not have any minimum commitments for alignment with the EU Taxonomy. The EU taxonomy was designed to establish the criteria for sustainable economic activity, but...
Nov 8 2023 #diversity, #equity, #esg, #human-rights
Say This Instead: Use Person-Centered Language
Have you heard Black people referred to as “Blacks”, all members of the LGBT+ community referred to as “Gays”, and people with disabilities referred to as “the disabled”? “Blacks”, “Gays”, and “the disabled” are examples of language that reduce individuals to a...
Nov 7 2023 #climate, #compliance, #environment, #esg, #investors, #social
Advocates Use Climate Litigation to Advance Policy
Climate litigation has been on the rise, with the past ten years seeing massive growth. Recently, NGO Client Earth published a piece on using the law to fight climate change. The article discusses high-level strategies used by NGOs and populations...
Nov 7 2023 #climate, #diversity, #environment, #equity, #esg, #human-rights, #social, #supply-chain
ESG Business Value: Are Garbage Economics Coming Back?
Don’t call it a “comeback”… please. If you’ve been around sustainability, CSR and ESG long enough, you remember the days of what I call “garbage economics” – claims of outsized business value of company sustainability/ESG initiatives using bad/weak assumptions, misinterpretations...
Nov 7 2023 #climate, #compliance, #environment, #esg, #investors, #supply-chain
Reminder: CSRD Webcast Thursday at 10:00 a.m. EST
This Thursday, November 9th at 10:00 – 11:00 a.m. EST we’ll be discussing the Corporate Sustainability Reporting Directive (CSRD) and its impacts on US Companies. Visit our webcast page to add this event to your calendar. This webcast is presented...
Nov 6 2023 #compliance, #environment, #esg, #investors
EU Raises Threshold for CSRD Scoping
The European Union is amending its Accounting Directive to adjust for inflation, increasing the monetary size criteria (balance sheet and net turnover) for micro, small, medium-sized and large companies by 25%. The size criteria laid out in the Accounting Directive are used as...
Nov 6 2023 #climate, #compliance, #environment, #esg, #supply-chain
Third Installment of Carbon Offset Podcast Series Available
The third in our series of podcasts on carbon offsets has been published. Brook Detterman of Beveridge & Diamond and I go into detail about legal aspects of buying and producing carbon offsets in today’s market, and ways to protect...
Nov 6 2023 #climate, #environment, #esg, #supply-chain
Survey Shows Companies Increasing ESG Spend
Another day, another ESG survey. I’m always cynical about surveys intended to predict company behavior on sustainability/ESG but this one could be different given that we are in “budget season” for many companies. ESGToday wrote about the latest release of...
Nov 3 2023 #compliance, #esg, #human-rights, #social, #supply-chain
Chinese Seafood Suppliers Dropped Amid Allegations of Forced Labor
A recent collaboration between the New Yorker and the Outlaw Ocean Project yielded troubling results for the seafood industry. Reporters found evidence of human rights violations on Chinese deep-sea fishing vessels and in Chinese seafood processing plants. The findings led...
Nov 3 2023 #environment, #esg, #supply-chain
Ceres Publishes New Corporate Water Benchmark Report
Last month, Ceres announced the publication of its inaugural benchmark report on corporate water stewardship practices covering 72 companies on the organization’s Valuing Water Finance Initiative focus list. “The report assesses how these companies from four water-intensive industries including food, beverage, apparel, and...
Nov 3 2023 #esg, #human-rights, #social
New Podcast: Cheryl Cooke on Mental Health Awareness in the Workplace
A new podcast is now available. I talk with Cheryl Cooke, PhD, DNP, PMHNP-BC, an academic and psychiatric nurse practitioner. She holds both research and practice doctorates and a Master’s in Health Systems from the University of Washington. She has...
Nov 2 2023 #climate, #environment, #esg, #investors, #social, #supply-chain
ESG/Climate Risk Management Can’t Do This
There is, of course, a tremendous amount of hype around ESG and climate risk management. So much so that – like “sustainability” back in the 1990s and early 2000s – it may create unreasonable expectations about its business value. Perceptions...
Nov 2 2023 #climate, #environment, #esg, #supply-chain
Wind Power Costs Threaten Projects Worldwide
Solar and wind power have become cornerstones of the low-carbon economy. But those technologies face financial threats that jeopardize project developments globally – along with the ability of other companies to meet Net Zero and alternative energy goals. Financial Times...
Nov 2 2023 #diversity, #equity, #esg, #social
New Guidebook: Say This Instead
Some of our most popular blogs on PracticalESG.com have been Ngozi’s “Say This Instead” series, which highlight everyday words and phrases with embedded bias and/or discriminatory contexts. We use these words and phrases as defaults without realizing or understanding their...
Nov 1 2023 #climate, #compliance, #diversity, #environment, #equity, #esg, #investors, #social
Republican AG’s Appeal DOL ESG Investing Rule Decision
Previously, we wrote about a legal challenge brought by various Republican Attorneys General (AGs) to the Department of Labor’s new ESG Investing Rule. The litigation appeared to be dead on arrival as the Texas trial court upheld the rule, but...
Nov 1 2023 #climate, #compliance, #esg, #investors
South Korea Delays ESG Disclosures
The South Korean Financial Services Commission recently announced a delay in the country’s upcoming mandatory ESG disclosure system. A press release recapping the third meeting of the task force on promoting ESG announced the delay which will push the regulation...
Nov 1 2023 #climate, #compliance, #environment, #esg, #investors
Fossil Fuel Shareholder Numbers Grow in Spite of Divestments
For the past several years, the mantra of divestment echoed through the halls and walls of investors with regard to fossil fuel companies. The goals were to decarbonize investment portfolios and constrain capital availability to those industries – forcing them...
Oct 31 2023 #climate, #environment, #esg, #social
Survey Finds Appetite for ESG Among US Population
New research from GSG and SEC Newgate polled Americans on their knowledge and opinion of ESG and the results show that generally, the American doesn’t know much about ESG terminology, but still expects more from companies on ESG issues. Starting...
Oct 31 2023 #environment, #esg, #social
Are Consumers Really Ready to Make Sustainability A Key Buying Criterion?
We’ve been through years of promises that consumers are willing to pay higher prices for green or sustainable products, or – where prices are substantially equivalent – that they prioritize green products over others. However, most of those predictions haven’t...
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Featured Q&A Members Only
California AB 1305 – What is a “significant” emissions reduction claim?
The new California AB 1305 – Voluntary Carbon Market Disclosures Act – requires certain website disclosures Jan 1, 2024 for businesses operating in California that make “carbon neutral,” “net zero emissions,” or “significant emissions reductions” claims. What constitutes a “significant” emissions reduction claim? Any thoughts on approach or thresholds? For companies that issue sustainability reports that include emissions reduction information, at what point do you cross the line and have required reporting?
11/10/2023, Question #19206
Private equity and the CSRD
I saw Meredith’s DealLawyers blog about private equity and the CSRD, and am looking to better understand how that could apply to non-EU entities. The checklist, which is helpful, says that the scope for the CSRD will be expanded to cover non-EU companies if they meet both of the following criteria:
a. net turnover of more than €150 million in the EU at the consolidated level; and
b. at least one subsidiary or branch generating a turnover of €40 million in the EU.
I have three questions:
1. Does this only apply to “companies” or also entities like limited partnerships, etc.
2. Is there anything stopping a company from creating more subsidiaries so that none of them meet the “turnover” prong of the test?
3. Is “turnover” a similar concept to revenue?
09/15/2023, Question #18073
What GHG emission factors to use?
We are unclear on which emission factors are best to use (generically) and why, with associated pros and cons. For example:
- Business Travel. EPA vs. DEFRA: DEFRA is much more inclusive and well rounded, resulting in higher CO2e (almost double). Should we take a conservative approach, going with higher estimates rather than lower? But as DEFRA is such a gross overstatement, would that threaten our credibility?
- Purchased Goods and Services. EPA has subcategories for emissions factors based on spend, but there are other emission factors that could be used. How would a practitioner know which emission factor to apply?
Also, IPCC is over 20 years old. When and why should such EFs be used?
07/25/2023, Question #17162