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ESG Monthly (May 2022)
This month’s highlights:
This month’s highlights: The EU Parliament objects to the inclusion of nuclear and gas in the EU Taxonomy; the US SEC conducts greenwashing probes; China publishes first voluntary ESG disclosure standards; Mirae Asset insights on net zero ‘stocktake’.
Commentary on ESG news and developments:
- In the European Union (EU), members of the European Parliament supported an objection to classifying nuclear and gas energy as environmentally sustainable activities under the EU Taxonomy (Reuters, June 2022).
- In the EU, lawmakers agreed to set a quota for listed companies in all 27 EU member countries to have women take up at least 40% of non-executive board seats, or 33% of executive and non-executive roles combined by mid-2026 (Reuters, June 2022).
- The Basel Committee on Banking Supervision, the primary global standard and policy setter for the banking industry, released a new set of guideline principles for banks and regulators to follow to address climate-related financial risks to the global banking system (Bank for International Settlements, June 2022).
- In the United States (US), the US Securities and Exchange Commission (SEC) is conducting greenwashing investigations against Goldman Sachs having charged BNY Mellon last month for misstated ESG claims for some of its mutual funds (Wall Street Journal, June 2022).
In Asian Pacific markets…
- In China, the Chinese government think tank China Enterprise Reform and Development Society (CERDS) rolled out the first set of Chinese ESG disclosure guidelines, which applies but localizes the international sustainability reporting standard Global Reporting Initiative (GRI) for the Chinese context (The Asset, May 2022).
- In Australia, the Australian Securities & Investments Commission (ASIC) issued a new set of guidelines that cautions and guides superannuation funds from greenwashing (ASIC, June 2022).
- In Thailand, the Securities and Exchange Commission of Thailand (SEC) partnered with CDP to raise awareness of and drive higher levels of environmental disclosures in line with the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD) (SEC, June 2022).
- In Malaysia, Bursa Malaysia Berhad published a second guidebook to promote ESG best practices for public listed companies (Bursa Malaysia, June 2022).
ESG Insights from Mirae Asset:
Net Zero Tracker’s latest ‘stocktake’ of corporate net zero targets
- Net Zero Tracker released the Net Zero Stocktake 2022 Report which assessed the emissions reduction trajectory and net zero plans for the world’s largest 2,000 publicly-traded companies by revenue worldwide.
- Over one-third of these companies have set net zero targets in 2021, up from one-fifth by the end of 2020.
- However, only about 65% have yet to meet minimum procedural standards for target setting, which includes making a pledge, explaining the steps, taking immediate action and reporting at least annually.
- For example, around 40% of companies intend to use the offsets to achieve net zero, which only means 60% have yet to specify whether carbon offsetting is in their decarbonisation strategies.
- Moreover, only 38% of companies cover all Scope 3 emissions in their target setting.
Source: Net Zero Tracker, Daiwa, June 2022
July 05, 2022
Staying Ahead with Mirae Asset’s Latest Insights
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