ESG issues are becoming increasingly important for investors and stakeholders, and companies are under greater pressure to implement and disclose their plans. Our Head of ESG, Jacqueline Faridani takes a look at what is in store for ESG in 2023.
ESG issues have become increasingly important for investors and other stakeholders in the past few years. COP 27 agreements and consensus on topics such as the Paris agreement, greenwashing, the transition to net-zero, and nature-based solutions will directly impact companies and organisations in implementing their ESG plans. And yet, there is still no common standard worldwide on ESG scoring, reporting and disclosure.
This lack of standardisation creates a challenge for companies, as they will have to be continually aware of ESG standards and reporting requirements in the jurisdictions in which they operate.
There is, however, a global trend to create an ESG standard.
The International Sustainability Standards Board (ISSB) is working towards standardising the disclosure of all greenhouse gas emissions (GHG) which includes Scope 3 emissions across their supply chain.
What does this mean for organisations?
The ISSB aims to clarify what information firms will need to provide to disclose their GHG emissions, as well as other sustainability-related risks and opportunities. The ISSB has formed a new partnership framework with over 20 organisations, including the Carbon Disclosure Project (CDP) and Principles for Responsible Investment (PRI). These organisations aim to help companies prepare their disclosures and implement their plans using the International Financial Reporting Standard’s (IFRS) sustainability disclosure requirements.
Additionally, the implementation of mandatory non-financial and sustainability reporting requirements for certain companies in the UK, EU and several other countries, highlights the necessity for ensuring transparency into an organisation’s operations and supply chain.
In the EU, the Sustainable Finance Disclose Regulation (SFDR) and Corporate Sustainability Reporting Directive (CSRD) are being implemented, with the goal of increasing transparency.
How can organisation's get ahead and prepare themselves for these ESG reporting and regulatory developments?
Prospect Law’s confidential 2023 ESG Audit provides an objective analysis of an organisation’s ESG credentials, including that of its supply chain. It not only addresses sustainability issues, but also covers the social and governance pillars of ESG.
Completing the Audit demonstrates a commitment to ESG and can help organisations prepare for mandatory ESG disclosures, by highlighting gaps and issues the company needs to tackle in order to improve their ESG performance and helps companies in meeting their regulatory requirements.
Stay ahead of the curve with Prospect Law's 2023 ESG Audit.
Our audit provides an objective analysis of an organisation’s ESG credentials, including its supply chain, and helps companies prepare for mandatory ESG disclosures and regulatory requirements. Show your commitment to sustainability and stay compliant with the latest standards.
Contact the ESG team below to find out more.
Dr Jacqueline Faridani
Prospect Law is a multi-disciplinary practice with specialist expertise in the energy and environmental sectors with particular experience in the low carbon energy sector. The firm is made up of lawyers, engineers, surveyors and finance experts.
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This article is not intended to constitute legal or other professional advice and it should not be relied on in any way.
