The IFRS Foundation reports that 20+ jurisdictions representing 55% of global GDP, more than 40% of global market capitalization, have announced steps to use or align with the International Sustainability Standards Board’s (ISSB) disclosure standards to provide investors with information about companies’ sutainability risks.
China’s Ministry of Finance issued proposed sustainability reporting standards based primarily on ISSB standards.
The SEC released climate disclosure rules – similar to the ISSB standards although keeping at least a politically optic distance.
Source: ESG Today
Meanwhile, more than 40% of investment funds in the EU using ESG or sustainability-related labels may be required to change names or sell assets in order to meet new anti-greenwashing rules, following issuance by EU markets regulator the European Securities and Markets Authority (ESMA) of its finalized guidelines for the use of ESG and sustainability-related terms in investment fund names.
Source: ESG Today
Delotte reports that more than 70% of M&A leaders reported abandoning potential acquisitions over ESG concerns and the majority are willing to pay more for targets with strong ESG attributes.
Source: ESG Today
And in the UK, the Financial Conduct Authority has announed new anti-greenwashing rules. And Barclay’s warns that the new EU rules on what stocks “ESG” funds can invest in will result in the mandatory exclusion of between 10.3% of global and 13% of European equity indices and 13.2% of Bloomberg’s gloval Investment Grade benchmarks and 12.6% of Bloomberg’s euro-denominated Investment Grade benchmarks.
Sources: Bloomberg and Bloomberg and Bloomberg
Like it or not, the financial world – or least its regulators – are focused on ESG.