There were two major announcements at COP27 on the ESG and climate disclosure front. First, CDP will incorporate the ISSB’s IFRS S2 Climate-related Disclosures Standard into its global environmental disclosure platform. Second, the ISSB announced the launch of the Partnership Framework for Capacity Building in Developing and Emerging Economies: an effort to drive global adoption of an inclusive and implementable baseline for disclosure. (Please see IFRS-ISSB section for details on both initiatives.)
The United Nations’ High-Level Expert Group on the Net Zero Emissions Commitments of Non-State Entities issued a comprehensive report entitled, Integrity Matters: Net Zero Commitments by Businesses, Financial Institutions, Cities and Regions. UN Secretary-General António Guterres created the Group in March of this year to enhance standards for net-zero emissions pledges by non-State entities (i.e., businesses, investors, cities, and regions) and to accelerate their implementation. The report advances 10 comprehensive recommendations for non-state actors. The Secretary-General stated that we “must have zero tolerance for net-zero greenwashing,” and described the report as “a how-to guide to ensure credible, accountable net-zero pledges.” - From Green Cognition
Proposed rules would affect all registrants, including:
- Smaller reporting companies (SRCs), emerging growth companies and foreign private issuers
- Companies entering the US capital markets for the first time by initial public offering
- Acquisition targets of public companies in a Form S-4
The recommendations center on four thematic areas of how organizations operate. These thematic areas interlink and inform one another:
- Governance: The organization's governance around climate-related risks and opportunities
- Strategy: The actual and potential impacts on the organization's businesses, strategy and financial planning.
- Risk Management: The processes used by the organization to identify, assess and manage climate-related risk.
- Metric and Targets: The metrics and targets used by the organization to assess and manage relevant climate-related risks and opportunities.
For questions on ESG Reporting and clean energy talent acquisition, reach out to Franchesca Mueller, Clean Energy Finance Recruitment Consultant: Franchesca.Mueller@talismanap.com
"Final Report: Recommendations of the TCFD on Climate-related Financial Disclosures," TCFD, June 2017.
"ESG UPDATE EXECUTIVE SUMMARY NOVEMBER 2022," GREEN COGNITION LLC, December 5, 2022.