Beyond the Bottom Line: ESG Ratings – Procurement’s New Moral Compass
The world of procurement is undergoing a significant transformation, propelled by the growing importance of Environmental, Social, and Governance (ESG) factors.
Home » ESG Regulation Tracker and Deadlines
The Paris Agreement states that “To stay below 1.5 °C of global warming, emissions need to be cut by roughly 50% by 2030”. Everyone, from policymakers and regulators to banks and investors will need to understand the symbiosis between the planet, economic activity and economic development. This is an age-old geopolitical problem in the true sense of the word – a conflict over resources between nations, social groups and individuals, and the failure to resolve it is perhaps because of its intractable and universal nature.
In essence, any resolution to the problem means moving from punitive solutions to ones that “nudge” behaviours. The use of tariffs to incentivise change is almost by definition too blunt an instrument because it focuses on a mercantilist world in which trade was zero-sum.
But now that trade has to be zero-carbon rather than zero-sum, we need to be more strategic in our approach. This means taking our aspirations and goals to deliverable and measurable actions.
The United Nations has outlined 17 Sustainable Development Goals to improve health & education, reduce inequality, & spur economic growth – all while tackling climate change & working to preserve our oceans & forests. In line with these goals, new regulations are being developed and implemented globally across all sectors.
To help you stay ahead of the ESG regulation and how you may be impacted Coriolis Technologies have aggregated all incoming regulations across the trade industry.
Non-Financial Reporting vs Green taxonomy: disclosure obligations enforced affecting asset managers, corporates and finance institutions who must be compliant as environmentally sustainable and take ESG criteria into account. Companies must contribute to one Green Taxonomy and Do No Significant Harm (DNSH) in others.
Regulations affecting all financial market participants and expected to include reg-tech standards and principle AELV indicators.
Reporting and regulatory technical standards agreed against all Principal Adverse Indicators.
Regulation affecting financial services, financial products, large companies, publicly listed SMESs, SMEs in high-risk sector (eg textiles).
Regulations expected to include assessment of forced labour, human rights, environmental degration (deforestation, pollution, land-grabs), torture, abuse, executions and arbitrary use of state power (in line with UN Global Human Rights Sanctions and UK Sanctions and Anti-Money Laundering and Financial Crimes Acts).
Reporting expected to also include Due Diligence strategy documents, plus practices and risk assessment of any direct and indirect suppliers.
Regulations to identify, assess, prevent and remedy human rights and environmental impact in supply chains. Regulations to include forced labour, discrimination, child labour, violations to freedom of association, unethical employment, unsafe working environments, and environmental degredation.
Fines expected to be in the region of €800k (government contracts/procurement excluded).
Asset disclosure vs Green Taxonomy: UK regulations will affect asset managers, corporates, investment products and investment product labels.
Our Sustainability tracking solution is currently in being tested by our Kosmos Working Group (KWG): a non-competitive working group, including banks, insurers, and professional bodies. Click here to learn more about the KWG. We expect to open the solution up to a wider audience towards the close of 2022.
Submit your details and we will add you to our database and update you on the progress of development and the release date of version 2.0. Alternatively, contact us directly here.
Please note, that your online safety and security are important to us. We understand the sensitivity of your data and will never pass your information on to any third party. Your data will be added to our private database so that we can notify you of any upcoming releases and send you our monthly updates.
The world of procurement is undergoing a significant transformation, propelled by the growing importance of Environmental, Social, and Governance (ESG) factors.
TradeSun and London Forfaiting Company (LFC) have announced an agreement for LFC to leverage TradeSun’s digital technology to advance their risk and compliance capabilities, with focus on ESG sustainability, across global trade.
Whether ESG and sustainability-linked initiatives and policy meet the needs of developing economies remains a topic of intense debate