A New EU Rule Can Expose Greenwashers
WiredIn 2023, all companies listed on regulated markets in the European Union will begin applying the Corporate Sustainability Reporting Directive, a new rule that will require them to publish, from 2024, detailed information about how they relate to the environment, the treatment of employees, human rights, anti-corruption, bribery, and boardroom diversity. It’s a welcome step toward improving the functioning of a multitrillion-dollar market known as ESG, which has long been troubled by inconsistencies in data quality, reporting standards, and methods used to generate companies’ ESG ratings. Third, companies must expand beyond the existing practice of reporting on how ESG factors impact their business to also report on how their business impacts the environment, society, and governance. ESG ratings agencies asked if they should continue shunning weapons manufacturers or increase those companies’ ESG ratings to reflect their role in defending democracies. The International Financial Reporting Standards Foundation, which sets global accountancy standards, has also created a new International Sustainability Standards Board that is now working to set global standards for ESG reporting.
History of this topic
Unraveling ESG Regulations: A Closer Look At India's Approach
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UK to adopt global sustainability rules to crack down on greenwashing
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