A summary of 2023
New regulations, customer success stories and the launch of Ethos updated platform for sustainability data, Atlas. Ethos summarises the prime events during 2023 and wraps up an eventful year in sustainability.
Regulatory advancements in the EU and around the world
???? 2023, the year of CSRD
In January 2023, the Corporate Sustainability Reporting Directive (CSRD) came into force and later in July the mandatory sustainability reporting standards (ESRS) were approved. With the introduction of CSRD, companies need to do a more comprehensive assessment of its material impacts, risks and opportunities through the double materiality assessment. In addition, the sustainability information moves into the management report – which equates sustainability reporting with financial reporting and makes the Board of Directors accountable for the published information.
Guiding our clients in the preparation of their first-ever CSRD report has been a privilege, and we are proud of our customers who have embraced the new directive. Access our webinar series "Build your roadmap to CSRD" for guidance, and for inquiries, contact our Head of Corporate Sustainability, Susanne Winge , at [email protected].
???? SFDR came into force and was revised
The Sustainable Finance Disclosure Regulation (SFDR) has entered into force and in 2023, the first reporting on Principal Adverse Impact (PAI) was conducted by Financial Market Participants (FMPs). SFDR requires FMPs to effectively communicate the environmental and social impacts of their transactions to pertinent stakeholders. Its objective is twofold: to mitigate greenwashing risks and promote transparency and openness in sustainable finance transactions.
The implementation of SFDR has had its challenges regarding e.g., data access and use and purpose of the disclosures. To address the challenges, the EU Commission opened a?consultation?during September-December 2023, and the responses are now being reviewed. Further, in December 2023, the European Supervisory Authorities (ESA) published?a new draft RTS?to the SFDR, which the EU Commission will review coming 3 months. In 2024, we will likely see improvements to the SFDR if and when the consultation responses and draft standards are implemented. Contact our SFDR expert Jennifer Ljungquist at [email protected] to know more.
???? New EU Taxonomy criteria for economic activities were released
In June, the EU Commission approved a new set of EU Taxonomy criteria for economic activities. These are found under the objectives:
The EU taxonomy is a classification system that defines criteria for economic activities that are aligned with a net zero trajectory by 2050 and broader environmental goals other than climate. It will help direct investments towards the economic activities most needed for the green transition. Interested to know more about how aligning with the EU Taxonomy could benefit your company? Reach out to our EU Taxonomy expert Ida Walloe Ahlander at [email protected].
???? Norway leads the way with the country’s Transparency Act, “?penhetsloven”
In June 2023, the deadline for reporting according to the Norwegian Transparency Act, ?penhetsloven, took place. The Act came into force on 1 July 2022 and relates to enterprises' transparency and work on fundamental human rights and decent working conditions. It requires companies to communicate their due diligence work, including what risks have been identified and how these have been managed. Human rights due diligence should be based on the six steps of the OECD and UNGP guidelines, these are: ensure governance and identify, prevent, manage, remedy, and communicate on human rights. A good source of information is?Forbrukertilsynet.
Ethos also hosted a webinar about the Transparency Act, which you can find here.?Contact our Supply Chain Area Lead, Linnéa Waninger , at [email protected] to know more.
???? California promotes climate accountability through new legislation
In October, California passed the “Climate Accountability Package” and followed the trend of promoting transparency in corporate sustainability. The package includes two pivotal bills, "SB 253: Climate Corporate Data Accountability Act" and "SB 261: the Climate-Related Financial Risk Act." These initiatives align with the global trend of implementing stricter sustainability legislation to meet the increasing demand for transparent and sustainable business practices. Both the current European Corporate Sustainability Reporting Directive (CSRD) and California's Climate Accountability Package share the goal of compelling companies to disclose their pollution data. However, in contrast to the European directive CSRD, the bills within the Climate Accountability Package specifically target large companies conducting business in California.
You can read more about the Climate Accountability Package on our website.
?????CSDDD - The due diligence regulation had a provisional deal agreed upon ?
In December, the European Parliament and Council struck a deal. Corporate Sustainability Due Diligence Directive is an EU directive that aims to enhance the protection of the environment and human rights in the EU and globally. If the CSRD gives companies an 'obligation to tell', the CSDDD give them an 'obligation to act' when it comes to due diligence. The provisional agreement now needs to be endorsed and formally adopted by both the European Parliament and the Council. We welcome the CSDDD and are working hard to help our clients put the legislation into practice.
Keep your eyes on our LinkedIn page and our website for upcoming events on CSDDD. In the meantime, you are welcome to contact our Supply Chain Area Lead Linnéa Waninger at [email protected] to know more about the CSDDD and how Ethos can help.
Worth celebrating at Ethos
?? New launch of Atlas – Ethos's digital platform for high-quality sustainability data!
During 2023 our digital data platform Atlas, has undergone an update and after hard work, it is here. The platform is built on 16 years of experience and understanding of the challenges, complexities but also opportunities, of the sustainability universe. It is tailored to support complex organisational structures and aligns with the regulatory requirements of for example CSRD and SFDR. While there are best practices, we know that there’s no “one-size-fits-all" approach. We always combine the platform with our advisors throughout the process, from setup and onboarding, via support, all the way to active use of the finalized data.
During the year we have helped several clients with data-related needs and are ready for the critical CSRD year 2024 with all the requirements that come with the regulation.
Book a demo of the platform if you are ready to accelerate the data collection in your organisation or watch our webinar episode on data collection here. Our Head of Digital Solutions & Analysis, Niklas Vinge, is always keen to chat about data. Contact Niklas at [email protected]. https://atlas.ethos.se/login?redirect=%2F
领英推荐
?? Ethos co-hosted trainings and events on sustainability
This year Ethos had the privilege of co-hosting trainings and events with Aktuell H?llbarhet, Spiltan Fonder, Handelskammaren / Sydsvenska Industri- och Handelskammaren, Regeringskansliet, Utrikesdepartementet, Founders Alliance, Svalner to mention a few.
Selection of topics covered in training during the year: Basics of sustainability, CSRD Board training, Double materiality, CSRD and ESRS, SFDR, EU Taxonomy, ESG risk and analysis, Anti-corruption and governance, Human rights and supply chain.
In need of tailored pieces of training or interested in co-hosting an event with us? Contact our Head of Brand, Amanda Hagberg at [email protected].
??? Important discussions in Almedalen
Ethos' sustainability experts participated in several different seminars and panel discussions during Almedalen. Thank you Techarenan?/ Business Sweden Tele2?Swedbank?DNB?Svensk V?rdepappersmarknad?and?Geelmuyden Kiese Sverige?for inviting us to participate in important discussions around sustainability connected to EU regulations, strategy and innovation. We were also pleased to chair a seminar on sustainable finance together with experts and professionals?Johanna Fager Wettergren?Finansinspektionen,?Nina Ahlstrand?DNB Markets,?Evelina Anttila?Wellstreet,?Emelie Norborg Friberg?Carnegie Investment Bank, and?Urban Funered?Svensk V?rdepappersmarknad. The discussion was moderated by our Head of Sustainable Finance, Jonathan Mill?ng . You can watch the panel discussion here (in Swedish, starts 4:50 in):?https://lnkd.in/d5gA-Agp.
We are already planning for Almedalen 2024, reach out to us if you need sustainability experts for your upcoming panel, as a moderator or keynote speaker. Contact of Head of Brand, Amanda Hagberg at [email protected] to know more.
??? New record of participants at Ethos Autumn Salon!?
In October we held our fourth edition of the Ethos Salon. The occasion has become a platform for learning, sharing and networking around sustainability. This time we gathered around the regulatory developments within sustainability and our guests had the chance to discuss, learn and share valuable insights along their journey to meet all these new sustainability requirements. We look forward to the next Salon!
Customer stories in 2023
It’s thrilling to be working side by side with ambitious clients who are achieving impressive accomplishments within sustainability. Here are two examples of all the clients we are proud to be working with:
?? Tele2 was ranked number one of 500 European companies on Europe’s Climate Leaders 2023 list. The list is compiled by the Financial Times in partnership with Statista , more information can be found here! Ethos is pleased to be working closely with Erik Wottrich, Head of Sustainability, and the skilled team at Tele2!
?? Glentra Capital?closed a successful investment in energyRe – a leading US-based renewable energy company. Ethos is happy to have played a role in this transaction, providing specialized advisory services focused on Environmental, Social, and Governance (ESG) Due Diligence. As we enter 2024 we are dedicated to continuing to support our financial partners in navigating the evolving landscape of sustainable finance.
And lastly, things we remember from the world around us!
???? Ethos at UN Forum on Business and Human Rights
In November, the UN Forum on Business and Human Rights gathered human rights experts from all over the world. Ethos supply chain lead, Linnéa Waninger, participated in Geneva together with Ethos CCO, Andreas T. Filipsson. They gained valuable insights, which will allow us to continue to guide our clients in an ever-increasing human rights regulatory environment.
?? The COP28 agreement
At the COP28 UN summit in November-December, the world agreed to “transition away from fossil fuels” but failed to commit to a full phase-out. UN Climate Change Executive Secretary, Simon Stiell, described the result in his closing speech: “Whilst we didn’t turn the page on the fossil fuel era in Dubai, this outcome is the beginning of the end. Now all governments and businesses need to turn these pledges into real-economy outcomes, without delay”. From a corporate perspective, the urgency to align with global climate goals, transition to renewables, and engage in innovative financial solutions is paramount. Ethos is here to advise and guide corporations on the path towards a green and just transition.
??Universal Declaration of Human Rights turned 75!
In December, we celebrated the 75th anniversary of a significant global commitment, the Universal Declaration of Human Rights. Amid current global challenges such as conflicts, widening inequalities, racism, and climate change, the principles and rights outlined in this declaration provide guiding principles for our collective efforts, ensuring that no one is overlooked or left behind.
Thank you to everyone who has followed us during the year, liked, commented and shared our articles, and to our team and clients who have tirelessly worked for a more sustainable future!
We hope you enjoyed our review and invite you to post your highlights from 2023 in the comments.
Thank you for this year, the Ethos team wishes you a Merry Christmas and a fresh start to 2024! ??