This memorandum highlights key recent developments in environmental, social and governance matters of relevance to companies globally.
Key Developments
The Biden Administration continues to move forward with clean energy-related legislation and international initiatives. In June, the U.S. enacted revised procedures for environmental reviews aimed at streamlining the permitting process for major energy projects, entered into an agreement with the UK to expand trade related to the clean energy transition and released further guidance on clean energy tax credits.
EU and UK regulators focus on greenwashing. In early June, European supervisory authorities published reports advancing a common definition of greenwashing and warning that the practice of greenwashing is on the rise in the financial sector. The UK’s advertising regulator has also banned three energy companies’ advertisements on the basis that they may mislead consumers as to the overall balance that green activities play in the companies’ wider activities.
ISSB releases first two sustainability disclosure standards. The International Sustainability Standards Board has released the final text of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. The standards are expected to form a new international baseline for the disclosure of sustainability-related financial information.
