The worldwide regulatory compliance for corporates to disclose Environmental, Social and Governance (ESG) footprint is skyrocketing, as governments across the globe take serious action to transform their economies.
While climate change and the regulatory initiatives to put climate commitments into action are front and center to this trend, the whole ESG concept includes a much broader view on a company’s responsibilities. Meanwhile ESG assets are on track to exceed $50 trillion by 2025 – representing more than a third of all global assets under management, so investor pressure to report on ESG initiatives is not letting up. With these mandates come challenges, but also opportunity.
As only one of many examples across the globe, the UK will become the first G20 country to introduce mandatory TCFD-aligned reporting for Britain’s largest companies and financial institutions to disclose on climate-related risks. From 6 April 2022, over 1,300 of the largest UK-registered companies and financial institutions will have to disclose climate-related financial information in line with TCFD recommendations. This will include many of the UK’s largest financial institutions and insurers, as well as private companies with over 500 employees and £500 million in turnover.
Although reporting regulations are most common in Europe, other countries are catching up with around 25 countries that introduced some form of mandates for firms to disclose ESG information, including Australia, China, South Africa, and the United Kingdom. As the urgency and awareness of climate change risks grow, new regulatory disclosures are sure to emerge.
Join us to hear from leading experts from Blackrock & MSCI how they are navigating the evolving world of ESG. During this session, we will make sense of ESG disclosures across the globe, discuss how companies are attracting and retaining capital and outline steps for collecting and transparently reporting ESG data.