European environment, social, and governance reporting standards: First drafts published

In late April, the draft European Sustainability Reporting Standards (ESRS) were released for public review and comments.

The ESRS offer standards on the following sustainability topics:

▶ CROSS-CUTTING STANDARDS: General principles; General strategy, governance and materiality assessment disclosure requirements

▶ ENVIRONMENT: Climate change; Pollution; Water and marine resources; Biodiversity and ecosystems; Resource use and circular economy

▶ SOCIAL: Own workforce; Workers in the value chain; Affected communities; Consumers and end-users

▶ GOVERNANCE: Governance, risk management and internal control; Business conduct

Public comments on the Draft ESRS can be submitted through 8 August 2022 via the links below.

LINKS:
Exposure Drafts: https://www.ggkp.org/esrs-exposure-drafts
Public Survey (Sections 1 & 2): https://www.ggkp.org/esrs-survey-1
Public Survey (Section 3): https://www.ggkp.org/esrs-survey-2

HSBC faces greenwashing accusations from UK advertising watchdog

NGFS launches consultation on its repository of climate-related data needs and available sources

This week, the Network for Greening the Financial System (NGFS) launched a public consultation on its repository of climate data needs and available sources. The directory is intended to be a tool for financial sector stakeholders to identify important climate data sources.

The consultation launched this week seeks feedback on the directory web interface through a short online questionnaire. Potential data users and providers are asked to comment on (i) the directory format and functionalities (ii) the directory contents.

The consultation will be open until May 6, 2022, COB.

Interesting report released by Matthew Gouett and the IISD finance team outlining opportunities for Canadian Community Foundations to strengthen their role in tackling climate change through their endowment investments. The recommendations are as follows:

-Move toward positive screening investment strategies and climate investing
-Make all governance documents public
-Make the reporting of endowment holdings and returns transparent
-Streamline endowment management
-Join the Canadian Philanthropy Commitment on Climate Change
-Set targets for diversity, equality, and inclusion on investment committees
-Ensure one investment committee member has recent, relevant environment, social, and governance experience
-Work with smaller foundations to allow access to enhanced endowment management strategies

Many of the recommendations above are relevant not only for a community foundation but also for any organization that has an endowment and cares about climate change.

UN Expert Group on the Net-Zero Emissions Commitments of Non-State Entities

The UN has launched a high-level expert group aimed at promoting transparent, credible, robust and urgent net-zero implementation plans. The group aims to tackle greenwashing by scrutinizing pledges to cut GHG emissions.

While the new panel did not have the capacity to evaluate individual companies or financial institutions, it will make recommendations as to what credible pledges look like (and how policymakers can hold these entities accountable).

According to the Climate Action 100+ Net Zero Company Benchmark released last month, net-zero commitments often aren't followed up with medium-term targets, spending plans, or value chain analysis.

The UN expert group will make recommendations before the end of the year.

After another wave of extreme weather, world leaders want to get serious about climate change. They appoint you the global minister for future generations.

Global temperatures have already risen by 1.2°C. From 2022 to 2050, how will you use your sweeping global powers to keep temperatures below 1.5°C?

The Climate Game by the Financial Times allows you to simulate the decisive action and hard decisions necessary to align our economic and financial systems with Paris Agreement goals.

Can you find a way to decarbonize by 2050?

Will Biden ever stand up to the IMF’s abuses of power?

'In short, the global south has never needed more support in its search for stability, strength and solidarity. But even a cursory glance of the IMF’s global activity reveals a systematic violation of this mandate, inflaming – rather than resolving – the crises of health, hunger and habitat that combine in the world’s poorest countries.'

The necessity of net-zero disclosure in Corporate Sustainable Reporting

Last week, Eurosif and the UN Principles for Responsible Investment (PRI) sent letters to the EU Commission, Parliament, and Council on the need for upcoming CSR rules to mandate robust disclosures around company transition plans and net-zero commitments.

The two organizations believe companies that have committed to be net-zero by 2050 should be subject to clear, robust disclosure requirements.

Trilogues on the EU Corporate Sustainable Reporting Directive may conclude as soon as May 2022.

Eurosif / UN PRI Press Release:
https://www.eurosif.org/news/joint-sustainable-investment-industry-lett…

On a similar note, 2° Investing Initiative recently published a discussion paper on metrics for measuring the transition to net-zero. Key sustainable finance questions confronted by the paper include:

▶ What metrics can financial institutions use to track exit strategies and transition pathways?
▶ In their net-zero transition, when will oil and gas firms cease to become so and start become some other type of business?
▶ How can transition plans be evaluated and compared?

2dii Discussion Paper:
https://www.greenfinanceplatform.org/research/sailing-sunset-or-chartin…

Apply to the Net Zero Challenge

The RFI Foundation’s Global Virtual Innovation (GVI) Hub, in collaboration with HSBC Bank Middle East Ltd., invites dynamic technology entrepreneurs, startups or established companies to submit applications for the GVI Hub’s 2022 Net Zero Challenge. The Net Zero Challenge is an open innovation challenge inviting companies from all over the world to develop or bring Climate Tech relevant to the financial sector (Climate FinTech) for the Middle East and North Africa.

The Net Zero Challenge seeks to attract applications from innovative technology companies that can develop solutions to tackle climate-centric challenges faced by financial institutions (Climate FinTech) in the Middle East and North Africa in establishing, tracking progress and achieving their Net Zero targets.

The Net Zero Challenge will run for 10 weeks from the close of applications culminating in a final virtual pitch.

The challenge will be delivered in five phases;
1. Complete applications process
2. Participant selection & interviews
3. Semi-finalist selection
4. Innovation bootcamp and
5. Finalists’ pitch to regional financial centers & FinTech hubs

Throughout the innovation period, ten (10) finalists will receive technical input, analytical support and dedicated coaching and mentorship from the RFI Foundation team, HSBC Middle East and other industry mentors and key stakeholders. Through this support, finalists will be inspired and learn to refine their solution pitches to support regional financial institutions’ Net Zero ambitions.

During the final pitch day, where five (5) Climate FinTech finalists will make their pitch to a panel of representatives from regional financial centers and FinTech Hubs, seeking their support to continue their growth within the region’s startup ecosystem

Finalists will pitch to FinTech Hubs who can offer various forms of support valued at more than $125,000 to help them integrate into the region’s startup ecosystem and provide a way to bring a scalable Climate FinTech solution that can be implemented by financial institutions in the Middle East and North Africa region.

Application Deadline: 21 April 2022
Informational Webinar: 14 April 2022, 4PM CET

Many thanks to Jessika Berns for sharing this!