MondayMar 04, 2024 1:00 pm

Stakeholders Welcome New EU Regulations on ESG Ratings

Europe’s investment industry has welcomed a proposed regulation for ESG rating providers as a crucial step toward preventing conflicts of interest in ESG reporting. The proposed regulation is in line with a provisional agreement between member states and the European Union parliament that was struck in early February. They would require ESG ratings providers to provide separate ratings for the three ESG pillars: environmental, social and governance. Alternatively, ESG rating providers that opt for an aggregate ESG rating could also explain how they weighted the three ESG pillars. According to the European Fund and Asset Management Association (“EFAMA”), “much clearer…

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FridayMar 01, 2024 2:00 pm

Why ESG Should Be Treated More Seriously

After decades of frenzied debate about whether corporations should serve society or their shareholders, a historic United Nations (“UN”) paper published in the early 2000s first used the term ESG to refer to Environmental, Social and Governance considerations. Titled “Who Cares Wins,” the report outlined the need for sustainable developments by corporations and highlighted the critical role ESG considerations would play in ensuring the future of humanity and civilized society. Unsurprisingly, the environmental pillar is simultaneously the most critical and challenging consideration to address. Over a century of burning fossil fuels has resulted in significant damage to the atmosphere, throwing…

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