Help us define, measure and reach a Nature Positive Economy!

As part of the HORIZON project GoNaturePositive! we are bringing clarity to the concept of a "nature positive economy", how to measure it and how to get there. We have our first proposal for this ready and invite all experts, practitioners and generally interested people to give their opinion and share their insights in our public consultation. Share your feedback until the end of november through the website. Scroll a bit down and you'll find the survey link and our concept note in different forms, from lenghty deep-dive to a one pager with 5 key messages!

Thank you and for more info, don't hesitate to contact me!
All the best,

Jomme Desair
Researcher at Research Insitute for Nature and Forest
https://www.linkedin.com/in/jomme-desair/

Understanding financial services for sustainable development is frequently a hard issue, because there are many institutions that have sources oriented towards SDGs, there are many agents which channel these funds and there are many instruments that every one of these usted for this process.

Do you know what can be considered the best effort to organize this complex information?

Is ESG reporting mandatory in Germany?

Yes, ESG reporting has been mandatory for certain companies in Germany since 2017, following the implementation of the CSRD Implementation Act.

This requirement applies to large, capital market-oriented companies, insurance companies, financial service providers, credit institutions, and cooperatives. However, for many other companies, ESG reporting remains voluntary until the end of 2024.

Possible standards for ESG reporting in Germany:

One of the complexities of ESG reporting in Germany is the absence of a universal format. Companies have the flexibility to choose from various German and European standards. Two of the most popular frameworks at the national level are:

German Sustainability Code (DNK): A comprehensive standard widely adopted by German companies.
Global Reporting Initiative (GRI): An internationally recognized framework that provides guidelines for sustainability reporting.
The European Union is introducing mandatory sustainability reporting standards for companies.

These standards, developed by the European Financial Reporting Advisory Group (EFRAG), will apply to all businesses covered by the Corporate Sustainability Reporting Directive. While these standards will provide a framework, it's important to remember that every company's ESG situation is unique.

But, the question is, which companies need to engage in ESG reporting?

Best practices for achieving net-zero in the UK

1. Set clear, science-based targets
The first step towards achieving net zero is setting clear and ambitious targets. Adapting the Science Based Targets initiative (SBTi) frameworks can help you in this scenario.

SBTi helps companies set clear goals to reduce their greenhouse gas emissions. The UK government wants to cut emissions from public buildings by half in 2032 and by three-quarters in 2037.

2. Implement comprehensive carbon footprint measurement
Accurate measurement of carbon emissions is essential for managing and reducing them effectively. Businesses should utilize tools and methodologies for comprehensive carbon footprint measurement. This involves calculating direct emissions indirect emissions from energy consumption, and other indirect emissions across the value chain.

3. Adopt renewable energy sources
Businesses should invest in renewable energy such as wind, solar, or hydropower. Additionally, organizations can purchase renewable energy certificates (RECs) to offset their energy consumption if direct use of renewable energy is not feasible.

ESG Case study: How EnerSys uses GenAI to drive Sustainability

AI is revolutionizing sustainability practices, with EnerSys showcasing how AI tools can significantly enhance efficiency and accuracy in data collection, reporting, and analysis for ESG efforts.

In the recently published Thomson Reuters Future of Professionals 2024 report, more than three-quarters (77%) of professional services respondents said they believe artificial intelligence (AI) will have a high or transformational impact on their work over the next five years. This was 10 percentage points higher than in the 2023 report; and moreover, a resounding 78% of professionals said they believe AI is a force for good.

It appears that this may be the case for sustainability practitioners as they face intense workloads from the explosion of upcoming environmental, social & governance (ESG) regulatory requirements. Christina Sivulka, the global sustainability manager at EnerSys — a leading industrial battery manufacturing and energy storage company — is one of these leaders at the forefront of leveraging AI. In fact, she and her colleagues have been using AI to enhance their company’s sustainability data collection and reporting processes for the last 18 months.

Double Materiality is a concept that has gained significant traction within environmental, social, and governance (ESG) frameworks, particularly for its comprehensive approach to assessing materiality from two distinct perspectives: financial materiality and environmental and social materiality. This dual approach ensures that companies not only consider the financial impacts of their operations on their financial performance but also the impact of their operations on society and the environment, and vice versa.

Double materiality represents a paradigm shift in how companies assess and report on material issues. By considering both the financial impacts of ESG issues and the impacts of their operations on society and the environment, companies can adopt a more sustainable and responsible business model.

This approach not only aligns with the growing emphasis on corporate sustainability but also enhances companies' ability to respond to the evolving expectations of stakeholders and regulators in the ESG landscape.

Cambodian Green Economy Transition: Background, Progress, and SWOT Analysis
by Puthearath Chan

A green economy is not a common economic practice. This leads the governments in many countries to focus on institutional arrangement and policy development. The institutional arrangement is one of the main significant factors, while green economy policies have to be well developed to support stakeholders and put less pressure on local communities. Hence, this research aims to understand green economic development in Cambodia by focusing on institutional arrangements and green economic development policies. Thus, this research’s priority was to evaluate their background and progress, and a comprehensive SWOT (strengths, weaknesses, opportunities, and threats) analysis was conducted based on their progress/transition. This research conducted background, progress, and SWOT analyses based on (i) the government’s documents, including the code, laws, royal decrees, sub-decrees, prakas, policies, strategic plans, roadmaps, and reports; (ii) development partners’ reports from reliable sources, such as UN agencies, UN Programs, ASEAN, the Asian Development Bank, and the World Bank; and (iii) existing literature. This research presented the results and discussed the findings encompassed by political and economic conditions, institutional arrangement and capacities, policy development and coordination, and participation of the public and stakeholders, as well as global green cooperation and funding, which were conditioned by the experiences from the COVID-19 pandemic and the uncertainties resulting from global geopolitical conflicts, such as the Russian–Ukrainian conflicts. Moreover, this research discussed weaknesses against strengths and threats against opportunities to suggest solutions or implications.

The SEC's climate disclosure framework is crucial for evaluating and reporting climate-related risks and opportunities. It encompasses governance, strategy, risk management, and metrics & targets. This framework aims to improve transparency and resilience in the financial system by integrating climate considerations into financial reporting.

‍As the global community grapples with the escalating challenges of climate change, the role of SEC Climate Disclosure in enhancing transparency and resilience in the financial markets has never been more critical. By embracing the principles of ESG and proactively engaging with regulatory developments, businesses and investors can navigate the complexities of climate-related risks and opportunities, build resilience, and seize opportunities for sustainable growth.

Through collaboration, innovation, and transparency, we can harness the full potential of SEC Climate Disclosure to accelerate the transition towards a more sustainable and prosperous future for all.

Sustainability Accounting Standards Board

The Sustainability Accounting Standards Board (SASB) is an independent, non-profit organization that develops industry-specific standards for corporate sustainability disclosure. Founded in 2011, SASB aims to bridge the gap between companies and investors by providing a standardized framework for reporting material ESG factors.

SASB’s standards are designed to be cost-effective for companies to implement and useful for investors seeking to understand and compare the sustainability performance of different organizations.

Why do we need the SASB?
‍The need for the Sustainability Accounting Standards Board arises from the growing recognition of ESG factors as critical drivers of financial performance and risk management. Investors, regulators, and other stakeholders are increasingly demanding transparent and comparable sustainability information.

SASB addresses this need by providing a clear and consistent set of standards that enable companies to disclose material ESG information relevant to their specific industries. This helps investors make informed decisions, enhances market efficiency, and promotes sustainable business practices.