The CS3D Digest #30
Ripple Research
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Welcome to the 30th edition of The CS3D Digest, a dedicated newsletter by Ripple Research and your weekly compass for navigating conversations that matter in the corporate sustainability landscape. Our goal is simple—to keep you informed about the latest developments in the Corporate Sustainability Due Diligence Directive (#CSDDD) space as we further our understanding of it.
Read our previous editions to catch up, and subscribe for future updates!
Today's focus: U.S. requests EU to delay deforestation regulation, Switzerland's financial sector to self-regulate, Australia releases a Sustainable Finance Roadmap, EU regulators propose changes to sustainable investment labels and insights from PwC report on corporate sustainability under CSRD.
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What are we reading?
We've employed our proprietary AI tools to curate the most engaging news about CS3D and related regulations. Our focus extends beyond what's trending at the moment to showcase headlines that are fueling meaningful conversations around the world.
The US has formally requested the EU to postpone a planned ban on imports of cocoa, timber, and sanitary products linked to deforestation, arguing that it would severely impact American producers. In a letter to the European Commission, US Secretaries Gina Raimondo and Thomas Vilsack, along with trade envoy Katherine Tai, highlighted significant challenges faced by US timber and paper industries in complying with the new regulation, which requires proof that products are sourced from deforestation-free areas after 2020. US lawmakers have also voiced opposition, citing impracticalities and potential trade restrictions for products from countries with well-managed supply chains, including the United States. Critics argue that the regulation could disproportionately affect small producers in developing countries, lacking the technology to verify their products' origins and potentially excluding them from EU markets.
The Swiss government has decided to hold off on introducing state regulations to combat greenwashing in the financial sector, deferring to the European Union's ongoing reforms of the Sustainable Finance Disclosure Regulation (SFDR). The Federal Council, noting the importance of the European market for Switzerland, opted to wait until the EU finalizes its amendments to the SFDR before reassessing the need for state-sponsored rules. This reassessment is mandated to take place by the end of 2027 at the latest. In the meantime, Switzerland is allowing the banking, asset management, and pensions industries to self-regulate. The Asset Management Association Switzerland (AMAS) has updated its self-regulation guidelines on transparency and disclosure to prevent greenwashing, which were approved by the Federal Council and will come into effect with a transitional period lasting until January 1, 2027. These guidelines cover sustainable investment objectives, sustainability approaches, accountability, and third-party audits.
Australian Government has released a Sustainable Finance Roadmap to mobilize significant private capital, modernize financial markets, and maximize economic opportunities associated with the country's net zero and sustainability goals. The roadmap is designed to assist investors, companies, and the broader community in making informed decisions during the net zero transition. It outlines a coordinated effort between the government, regulators, and industry to implement sustainable finance initiatives and reforms effectively. Treasurer Jim Chalmers emphasized that the roadmap builds on the government’s existing corporate climate disclosure regime, backed by approximately 900 Australian companies and asset managers managing over $80 trillion. It also identifies priorities such as addressing greenwashing, understanding climate risks and opportunities, and improving access to climate and emissions data.
European Union regulators have proposed extensive changes to the bloc's sustainable investment labeling rules to simplify information for investors and reduce greenwashing risks. The new proposals introduce two voluntary product categories 'sustainable' and 'transition'. 'Transition' products are not yet sustainable but aim to become so over time. The European Commission is reviewing the Sustainable Finance Disclosure Regulation (SFDR) to address issues of greenwashing, which involves making exaggerated claims about the environmental benefits of financial products. The EU's markets, banking, and insurance watchdogs—ESMA, EBA, and EIOPA—highlighted that the current rules are overly complex and recommended that the Commission consider introducing the sustainability indicator to help grade financial products such as investment funds, life insurance, and pension products. The revisions aim to prevent the misuse of Articles 8 and 9 disclosures under the SFDR. Article 8 covers funds with environmental characteristics, while Article 9 targets those directly linked to sustainability. Ultimately, this will ensure that financial products are marketed with clear objectives and criteria, helping consumers better understand the sustainability aspects of their investments.
领英推荐
The PwC Global CSRD Survey 2024 has revealed that approximately three-quarters of companies subject to the EU’s Corporate Sustainability Reporting Directive (CSRD) are integrating sustainability into their decision-making processes. Surveying more than 540 executives across 30+ countries, including 60% from EU-based firms, PwC found that despite high confidence in meeting CSRD obligations, companies face challenges such as data quality and availability. Most companies (74%) currently rely on spreadsheets for sustainability reporting, indicating a significant gap in technological infrastructure. However, there's a growing intent to invest in carbon calculation tools (47%) and sustainability management software (49%) to enhance reporting capabilities. Despite the challenges, companies are preparing to capitalize on the opportunities presented by enhanced sustainability reporting to drive business resilience and stakeholder trust. Implemented in 2024, CSRD mandates detailed reporting on environmental impacts, human rights, social standards, and sustainability risks.
Voices from this week
?? Tiffanie Chan, Policy Analyst at Grantham Research Institute on Climate Change & the Environment , advocates for innovative policy approaches that advance climate action while promoting justice, even in the absence of explicit 'just transition' frameworks.
??Joseph Wilde-Ramsing, Director of Advocacy at SOMO , urges EU lawmakers to closely align CSDDD with OECD Guidelines during the law's transposition into national legislation for maximum effectiveness.
??Sue Duke, VP of Global Public Policy & Economic Graph at LinkedIn , discusses the potential impact of Canada's Sustainable Jobs Act in promoting collaboration across sectors and preparing the workforce for green job opportunities to ensure environmental sustainability and economic prosperity.
??Andrew Griffiths, Director of Policy & Partnerships at Planet Mark , welcomes IFRS Foundation's move to consolidate sustainability reporting standards to simplify the reporting landscape and ensure alignment across other frameworks like GRI, and others.
??Mathieu Vervynckt, Head of Unit Value Chains at Swedwatch , shares a report on the working conditions on South African wine farms while calling for state-owned enterprises to implement rigorous human rights and environmental due diligence throughout their supply chains.
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