The European Securities and Markets Authority (ESMA) has echoed calls from the European Central Bank (ECB) and pensions regulator EIOPA to limit corporate sustainability reporting reliefs proposed by EU standard-setting body EFRAG. The EU securities regulator on Wednesday issued an opinion on amfinishments to the European Sustainability Reporting Standards (ESRS), which are being reviewed by the European Commission. The reliefs, which have been proposed as a permanent feature of EU sustainability reporting standards, were described by ESMA as its “most substantial concern” due to the potential impact on the quality of disclosure and interoperability with the International Sustainability Standards Board (ISSB) standards. ESMA proposed limiting reliefs, which would allow non-disclosure or partial disclosure of metrics due to data unavailability, to the finish of 2029. The ECB and EIOPA have suggested limiting the reliefs to the first three years of reporting. ESMA has also requested clarification on whether provisions in the EU disclosure framework would require climate tarobtains to be “science-based and compatible”.
In other ESMA-related news, regulators in Austria, Denmark, France, the Netherlands and Romania have notified the supervisor that they will not comply with all or part of its guidelines on the enforcement of sustainability information. According to a compliance table published by ESMA, the regulators stated they lacked the legal authority to exercise some powers set out in the guidelines, and in the case of Romania that they lacked sufficient human resources for enforcement of the rules.
The Science Based Tarobtains initiative (SBTi) has published an FAQ for its Financial Institutions Net-Zero (FINZ) standard. The paper addresses topics such as the calculation of absolute emissions versus emissions intensity, regional differentiation, interoperability and treatment of carbon capture. Danish pension fund PFA and peer AP Pension became the first pension schemes to sign on to the SBTi’s net-zero standard for investment and lfinishing activities earlier this year.
S&P Global Energy and Verisk have partnered to launch a climate catastrophe exposure data tool for the financial and insurance sectors. It will allow clients to stress-test portfolios, evaluate climate objective compliance and manage solvency and capital efficiency challenges, Verisk stated in a statement. The partnership integrates Verisk’s climate catastrophe risk data into S&P Global Sustainable1’s Climanomics physical climate risk platform. Users will be able to assess insured versus non-insured losses, as a result for climate alter. S&P Global Sustainable1’s climate-adjusted inland flood data will be integrated into Verisk’s event simulations, which provide future-projected climate events modelled through to 2050.
The International Sustainability Standards Board (ISSB) is due to vote on proposed amfinishments to three Sustainability Accounting Standards Board (SASB) standards when members meet on 26 February, according to meeting notes. Amfinishments have been tabled to three SASB sector standards: agricultural products; meat, poulattempt and dairy; and electric power and utilities. Once approved, the revised standards will be published for a 120-day comment period. The board will also be questioned to propose a date to implement the revisions. It comes soon after the ISSB concluded a consultation over alters to nine other SASB sector standards. The body has not released the feedback it received but stated that 91 submissions were created, with “almost all respondents” supporting the amfinishments.
There is a gap between global seafood companies’ traceability commitments and their current implementation strategies, according to a report by FAIRR. Published this week, the report presents results from the second phase of a FAIRR-led investor engagement with seven global seafood companies. It found that while four of firms now have robust traceability commitments – up from two last year – the majority still lack comprehensive traceability implementation plans across their seafood portfolios, “casting doubt over how traceability ambitions will translate into measurable outcomes”.
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