We’re pleased to bring you this comprehensive update on the latest developments in environmental, social, and governance (ESG) regulations worldwide. Here’s the roundup of the key changes and insights from July 2024:

Global Updates

• TNFD Guidance: The Taskforce on Nature-related Financial Disclosures has released ten new guidance documents along with adoption statistics, providing comprehensive insights for companies navigating ESG reporting.
• C-Suite Responsibilities: Enhanced scrutiny on corporate leadership roles in ESG compliance is intensifying, indicating a shift towards greater accountability.
• Airline Carbon Claims: Recent regulations underscore the increased scrutiny of airlines’ carbon emissions claims, reflecting tighter control on environmental impact statements.
• ISSB’s Strategic Focus: The International Sustainability Standards Board is focusing on harmonizing sustainability reporting landscapes and forming strategic partnerships to bolster global reporting standards.
• ESG Comparability and Reliability: A critical look at ESG ratings highlights the ongoing challenges in assessing comparability and reliability.

Regional Insights

Australia & New Zealand: The region shows significant progress with Australia’s Sustainable Finance Roadmap and New Zealand’s framework for Carbon Capture, Utilisation and Storage. Notably, Australia is also advancing greenwashing enforcement and mandatory climate reporting.

United Kingdom: Key updates include discussions on Corsia’s emission units for airlines, the UK Environment Act’s impact on Biodiversity Net Gain, and ongoing climate litigation influencing insurance disputes.

European Union: The EU continues to lead with multiple initiatives, including the Corporate Sustainability Due Diligence Directive, the Green Claims Directive, and the new Ecodesign for Sustainable Products Regulation. Recent legal developments also stress the stringent requirements for ‘climate-neutral’ claims in advertising, highlighted by the German Supreme Court’s first decision on “Climate neutral” claims in advertising.

Sector-Specific Developments

• Finance: Enhanced ESG scrutiny under antitrust laws suggests that navigating ESG collaborations requires careful compliance to avoid legal pitfalls – Navigating ESG Collaborations Under Heightened Antitrust Scrutiny
• Legal: Litigation related to climate issues is on the rise globally, with a significant uptick in cases concerning environmental claims and corporate responsibilities. – Global trends in climate litigation 

Featured Discussion

Sustainable Investments in Asia-Pacific: A focus on the regulatory perspective surrounding ESG investments in the Asia-Pacific region reveals evolving standards and expectations for corporate sustainability efforts.