Until today, Environmental, Social, & Governance (ESG) has been defined mostly by voluntary practices, as the key policymakers (market authorities as well as national and international regulators) adopted a “sit and stare” approach and let the markets decide how to deal with ESG.
The tide has turned, with jurisdictions now racing to introduce strict mandatory requirements that bind companies to contribute to the public policy goals governments are setting in relation to climate specifically and ESG more broadly.
These developments have deep implications for companies, investors, and financial markets. Let’s look at five main policy trends that are significantly reshaping business:
1. No more ESG standards alphabet soup – While new niche frameworks and guidelines will always pop up (let’s keep in mind that ESG evolves constantly), the European Union (EU) mandatory Sustainability Reporting … Read more...