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Discover how investors can more effectively respond to climate regulatory initiatives, advance engagement activities and support net zero strategies.

Canada introduces climate reporting framework Canadian regulators have issued new guidance for the country's banks and insurance companies to better manage climate-related risks. The framework, which requires disclosure on governance, strategy, risk management, and metrics related to financial institutions’ greenhouse-gas emissions, was first drafted in 2022.

Discover case studies that provide a deeper understanding of ESG performance management and how to approach corporate governance, business ethics, and human capital risks from a diverse range of industry perspectives.

Could innovation help the sustainable finance market rebound in 2023? Will scrutiny of linked instruments continue to push investors back to use of proceed transactions? We tackle these topics and more in our latest episode.

The absence of clear parameters to support the regulatory definition of sustainable investments has pushed market participants to make judgment calls leading to diverging investor approaches.

The EU Action Plan for Sustainable Finance has kept the European investment market busy over the past year. In this blog post, we highlight the merits that we see in the EU regulatory package. While not perfect, the regulation is a good start.

The article offers an analysis of the ESG issues faced by companies engaged in the development of innovative transportation technologies.

The U.S. Congress has passed a resolution repealing a Department of Labor (“DOL”) rule empowering retirement plan managers to consider climate change and ESG factors in their investment decisions. The rule, introduced by the Biden administration, falls under the Employee Retirement Income Security Act (“ERISA”), a federal law which sets protection standards for participants in private pension plans. Biden’s ruling entered into force in January this year, overturning prior Trump-era DOL rules that limited pension fund managers to restrict their investment strategies to “pecuniary factors.”

Indian regulator proposes enhancement to ESG disclosure rules India’s securities and market regulator SEBI has released a new ESG disclosure framework for public consultation. The proposed regulations impact India’s 1,000 largest companies by market capitalization, ESG funds and ESG ratings providers. For the largest companies, the regulator proposes areas of assurance of ESG disclosures and reporting and assurance of ESG footprint of the supply chain. The proposals expand on the 2021 Business Responsibility and Sustainability Report (“BRSR”) guidelines and propose mandatory assurance of certain KPIs under ESG disclosure. The KPIs contain intensity ratios such as GHG emissions, water consumption, and waste generation. For supply chain, SEBI will introduce a comply-or-explain approach for the top 250 companies starting in 2024, and assurance beginning in 2025. For ESG funds, SEBI proposes that at least 65% of AUM be invested in companies reporting on comprehensive BRSR and provide assurance on BRSR core disclosures. Under the proposed rules, ESG rating providers should also provide a “core ESG rating” based on assured information in addition to their own products.

Despite ending 2022 on a low note, there is optimism for the global sustainable finance market in 2023 as sustainability is still a key issue for investors, issuers and governments and remains closely tied to capital markets.

SEC considers changes to climate disclosure rules The U.S. SEC is reportedly considering easing a set of proposed rules, released in March 2022, which would have  required public companies to make disclosures about their greenhouse gas emissions (“GHG”), climate-related  financial metrics, and climate-related risks.

With the effects of climate change looming, governments and organizations of all stripes need to work with carbon-intensive industries and invite them to participate in global decarbonization efforts. This can, in part, be achieved through sustainability-linked instruments.

Read about the methods investors can use to measure portfolio alignment to net-zero and the importance of not only assessing climate transition plans, but also their governance structure and implementation.

Toshiba Corp receives USD 15.2 billion take-private offer Toshiba has received a USD 15.2 billion buyout offer from a consortium led by investment fund Japan Industrial Partners (“JIP”). The offer was made after the tie-up managed to secure commitments from banks worth USD 10.6 billion, including a commitment line of JPY 200 billion (USD 1.5 bullion) for working capital. The deal, which would see the Japanese electronics maker going private, is subject to board and shareholder approval. Toshiba has set up a special committee, composed of seven outside directors, to assess the offer.

With aspirations to include environmental, social, and corporate governance (ESG) principles as a fundamental part of its business model, FYI Resources Ltd.

Activist investor Nelson Peltz targets Disney seat Trian Partners has filed a proxy calling on Disney shareholders to oppose the reappointment of Michael Froman as director at the 2023 AGM and to replace him with Trian CEO Nelson Peltz. Trian argues that Froman has no corporate experience outside of Disney, accuses the board of having caused financial losses through poor corporate governance, and has criticized Disney’s handling of its 2019 Fox acquisition as well as its failure to establish an effective succession plan. Disney, which has rejected Peltz’s request for a seat, claims that he lacks relevant skills and has no plan to enhance financial performance, while arguing that Peltz’s election would be a “mistake” that would “threaten the strategic management of Disney during a period of important change in the media landscape.” Reuters | CNBC | Trian Partners|

In this blog we provide insights into the best practices for developing a successful ESG program by highlighting two important habits of high-performing companies in Sustainalytics’ universe.

Despite improvements in the quality and quantity of carbon emissions reporting from companies, significant gaps remain. Discover the current state of emissions disclosures, learn the advantages and disadvantages of widely used estimation models, and discover the approach underpinning Sustainalytics' Carbon Emissions Data product.

Former McDonald’s HR Head faces landmark ruling The Delaware Court of Chancery has ruled that corporate officers have the same oversight obligations as corporate directors under Delaware law. The decision paves the way for a shareholder lawsuit filed against former McDonald’s executive David Fairhurst in 2021. Fairhurst, who served as the firm’s Global Chief People Officer from 2015 until his termination in 2019, is accused both of breaching his fiduciary duties by permitting a corporate culture of sexual misconduct and of engaging in sexual misconduct himself. Fairhurst had argued that he could not be sued, citing purportedly precedential rulings that such oversight rests solely with directors

Climate change and adaptation are high on the international agenda. Listen to learn how the outcomes from COP27 and COP15 could influence sustainable finance markets and get a rundown of recent notable market transactions.