EU Action Plan on Sustainable Finance
Sustainability Reporting - New Global and European Requirements
<aside> 💡 Scope 3 reporting for financial institutes As part of Scope 3 measure and report, financial institutes need to include category 15 “Financial investments” as it materiality for their organization. The standard recommend to follow the GHG Accounting and Reporting Standard for the Financial Industry from the Partnership for Carbon Accounting Financial (PCAF).
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<aside> 💡 Are we expected to see a similar US Taxonomy? At present, there is no equivalent to the EU Taxonomy in the US. However, there are efforts to create a framework similar to the EU Taxonomy in the US, such as the Green New Deal proposed by some US politicians. The US Securities and Exchange Commission (SEC) has also taken steps to increase ESG (Environmental, Social, and Governance) disclosures by public companies in the US.
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The New European Union ESG Rating Proposal
The European Union discussed a new regulatory regime for ESG ratings providers. Although the proposed regulation is still in the consultation phase, it is a promising step towards ESG transparency on a wider scale.