EFRAG's implementation guidance for the materiality assessment as of December 2023
In the November meeting of the EFRAG working group on Sustainability Reporting, the group provided an update on the guidance for materiality assessment. This document incorporates comments from previous rounds of revisions, and it is expected to be publicly released once all comments are incorporated and it receives approval.
January 13, 2024
"Who Cares Wins": transforming finance and economics through ESG
The term “ESG” first appeared in a report titled “Who cares wins", published in 2004 under the guidance of the UN Global Compact. The subtitle of the report, “connecting financial markets to a changing world,” highlights its intention to provide guidance for financial institutions on environmental, social, and corporate governance issues which are seen to be closely related to sound financial resource allocation. The report is the output of a joint initiative of 18 leading financial institutions from 9 countries at the invitation of the UN Secretary-General Kofi Annan.
January 5, 2024
Recapping a year of progress in sustainability
2023 is coming to an end, and we want to take stock of the progress in the areas of ESG and business sustainability. For our last blog of this year, we highlight some of our thoughts in four areas: sustainable finance and business sustainability, climate, carbon and data gaps, nature and its realms and services, and disclosures and corporate accountability.
December 15, 2023
The LEAP framework for nature-related financial disclosures
What is the LEAP framework that accompanies the TNFD disclosure recommendations? It stands for “Locate, Evaluate, Assess, Prepare”, and it is a four-step integrated assessment framework for nature-related issues released by the Taskforce on Nature-related Financial Disclosures.
November 16, 2023
Nature-related disclosures: how do TNFD recommendations affect sustainability disclosures?
During Climate Week 2023, The Taskforce for Nature-related Financial Disclosures (TNFD) released its inaugural Recommendations on Nature-related Disclosures. Building on the work of the Taskforce for Climate-related Disclosures (TCFD), TNFD sought to accelerate the integration of nature-related topics in financial disclosures in a similar structure to TCFD.
October 13, 2023
Materiality analysis: what topics do companies disclose in sustainability reports?
Companies in many industry sectors publish annual sustainability reports detailing sustainability-related initiatives and metrics across Environment, Social, and Governance (ESG) dimensions. These reports typically follow one of the voluntary standards, like the GRI or SASB standards. As part of sustainability reporting, a description of the process for materiality analysis and the resulting prioritization of material topics often is the foundation of the disclosure particularly for those companies reporting in reference to or in accordance with GRI standards.
September 14, 2023
Implementation guidance on materiality assessment from EFRAG
EFRAG reviewed the initial draft of the Implementation guidance for the materiality assessment on August 23. This document outlines practical information and FAQ on the materiality assessment. After the initial review, this document will be released for a public commenting period of four weeks, following which the final document will be released after approval.
August 24, 2023
Corporate sustainability bonds as new instruments for corporate debt financing
Since the early 2010s, corporations have increasingly leveraged bonds as a financial tool to fund various sustainability projects. The funding raised from these bonds are earmarked for environmental and climate-friendly projects, such as renewable energy, sustainable infrastructure, resource conservation, or linked to some environmental objectives.
June 8, 2023
Climate risk assessments: understanding and mapping climate risk scenarios
UNEP published its latest Climate Risk Landscape report in March 2023. This is a continuation of reports published in 2020 and 2021, which provided an initial overview of the various publicly available climate risk assessment tools, and reflected on the use experience of the financial institutions.
March 20, 2023
ESG and Sustainability
ESG stands for Environment, Social, and Governance, which is a broad set of topics that cover climate action, carbon accounting, employee relations, social inclusion, executive compensation, board governance, etc.
February 22, 2023
What “material” topics are relevant for consumer goods companies?
Materiality is a debated topic in the ESG debate. This term is originally an accounting concept that says that all items reasonably likely to impact investors’ decision-making must be recorded or reported in a business’s financial statements.
December 13, 2022