ESG trends have gone beyond being just a trendy terminology and have now suffused the corporate world with great depth. The environmental, social, and governance aspects of sustainability are becoming major considerations for investments, and several regions of the world have imbibed this to varying degrees.
Keeping tabs on the latest trends in ESG laws and regulations is a great way to be in tune with progressive developments. From the fight against greenwashing to sustainable batteries and decarbonization programs, here are the latest news and trends in ESG.
- An Increase In ESG Trends Adoption: Although the North American region seems to have the least percentage of ESG users, this year has seen a better momentum toward adopting ESG trends and sustainability. More investors are starting to cite susta6 issues as deciding factors in investments. At the End of 2021, there were several predictions that ESG would see an increase in 2022, and true to it, the adoption of ESG is fast-growing across North America.
- Greenhouse Offset Credits Mitigate Emissions: Canada launched a credit system for greenhouse gas offsets a few months ago to help with reducing carbon emissions. Prime Minister Justin Trudeau has reaffirmed their commitment to reducing climate-warming emissions by 2030, 45% lower than the current value. This offset system is proposed to be featured in the domestic carbon offset trading market and is also aimed at providing economic opportunities for companies making efforts to reduce emissions.
- Houston decarbonization programs: Houston is home to 40% of publicly traded oil and gas companies and is responsible for 3% of global emissions and 10% of emissions in the United States. McKensey has announced the investment of a hundred million dollars into decarbonization programs in Houston, promoting climate technologies such as the carbon capture utilization and storage CCUS, business building, and energy transition strategy. McKinsey partner Nikhil Ati mentioned that decarbonization would lead to a new economic development chapter while also addressing a critical problem of climate change.
- Environmental Social and governance reporting software: NASDAQ has received its global reporting initiative certification. It is the first-ever provider certified by the renowned GRI for the revised universal and topical standards disclosed in 2021. Certification re-enacts the pledge of the fulfillment of the reporting needs of companies and efficient operation of ESD data to stakeholders.
- Sustainable battery supply chain in North America: There is a collaboration between Volkswagen and Canada to enhance mobility and sustainability through software-driven vehicles. It is to create standardized cell production capacities to deliver 240 gigawatt-hours per year. Volkswagen, in a bid to fulfill its responsibility in the pursuit of climate change, has been intently advocating the transformation to e- mobility for a long time.
- The Fight Against Greenwashing: A situation where funds intend to benefit by deceiving stakeholders about their ESG qualifications is known as greenwashing. The measures put in place by the Security and exchange commission to curb this is a proposal that provides a guideline on how ESG trends funds should market their name and investment practices. Funds incorporating ESG factors and non-ESG factors would be required to describe how ESG is integrated into their investment process. The SEC proposes this measure to standardize disclosure to prevent exaggerated ESG considerations and the chances of misleading investors with a performative ESG without practical cooperation. The SEC Plan is that the proposal will be open to public comment for 60 days.