Featured Product

    CDP Reports Data on Corporate Sustainability, Issues Other Updates

    February 16, 2023

    The Carbon Disclosure Project (CDP) published data that shows European businesses are already implementing key elements of the Corporate Sustainability Due Diligence Directive. Other key updates discuss the data on climate transition plan disclosures, a study on analysis of companies developing credible climate transition plans, and a report on the Non-Disclosure Campaign (NDC).

    The Corporate Sustainability Due Diligence Directive in the European Union aims to provide a regulatory framework on corporate sustainability governance. Among key provisions of the Directive, Article 15 requires EU companies with 500+ employees and EUR 150 million+ in net worldwide turnover to have transition plans aligning their strategy and business models with a global warming limit of 1.5°C. The Directive also obliges member states to monitor companies’ operations and emission reduction plans and how the variable remuneration of executive directors is linked to the achievement of sustainability objectives. The CDP data show that more than a third of companies in Europe (37%) reported having a climate transition plan in place and only 2% of those companies report on all relevant transition plan indicators. The data also reveals that just one third of companies (34%) assess the impact of their value chains on biodiversity and only 17% assess both their upstream and downstream impacts. Therefore, the proposal of an extension of Article 15 to include biodiversity would lay the foundation for nature transition planning by companies, thus delivering on the goals of the Paris Agreement, the EU Biodiversity Strategy 2030, and the Global Biodiversity Framework. 

    Following are the additional key highlights of the remaining updates, as part of which CDP:

    • published new data that show companies are recognizing the need for climate transition plans but are not moving fast enough amidst incoming mandatory disclosure. The report assesses climate transition plan disclosure against 21 key indicators within CDP’s climate change questionnaire and found that only 81 companies (0.4%) disclosed to all relevant indicators. A climate transition plan is a time-bound action plan that outlines how a company will achieve its strategy to align its assets, operations, and entire business model with the latest and most ambitious climate science recommendations.
    • published a study, in collaboration with the global management consulting firm Oliver Wyman, that analyzes companies representing ~75% of the European stock markets and found that European companies are falling far short of developing credible climate transition plans to align with a 1.5°C, nature-positive future. The study highlights that most transition plans may lack ambition and transparency in key areas necessary to show serious action, such as in governance, financial planning, and value chain engagement.
    • published a report on the Non-Disclosure Campaign (NDC), which is a collaborative initiative for CDP Capital Markets signatories to directly engage with companies that have failed to respond to either the climate change, forests, and/or water security questionnaire. The results of the 2022 NDC highlight the impact of direct engagement on companies’ environmental actions, in this case disclosure through CDP.

    Keywords: International, Banking, Securities, Corporate Sustainability, ESG, Climate Change Risk, Reporting, Disclosures, Climate Transition Plan, Paris Agreement, Global Biodiversity Framework, CDP

    Featured Experts
    Related Articles

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    MFSA Sets Out Supervisory Priorities, Issues Reporting Updates

    The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023

    March 02, 2023 WebPage Regulatory News

    German Regulators Issue Multiple Reporting Updates for Banks

    Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8806