Top 10 ESG Markers - April 2023

The month of April covers the European Union's new sustainability rules impacting over 10,000 foreign companies, Australia’s introduction of the Workplace Gender Equality Bill to promote gender equality and reduce the gender pay gap. The UN General Assembly passed a motion requiring governments to consider human rights impacts of their climate policies, and the International Court of Justice is to deliver an opinion on climate change and the legal consequences countries face for harming the environment. Victoria has launched a new Container Deposit Scheme to reduce litter and increase recycling rates. Finally, a new UN report warns that it may be too late to save the world's glaciers due to climate change.

Again, if I happen to miss some key markers in a particular month. Just drop me some comments, and I will pick them up next month!?

*‘ESG Markers’ – like biomarkers that tell us how healthy our body may be, ESG Markers showing us the big movements in the field of ESG in Oceania and globally.?

So, here are my Top 10 for April 2023, again in no particular order.

Over 10,000 foreign companies to be impacted by EU CSRD Rules

The European Union's new sustainability rules are expected to affect more than 10,000 foreign companies, including many from the US, China and Japan. The rules require companies to disclose their environmental, social and governance practices, and many foreign firms are concerned about the added costs and potential penalties for noncompliance. The EU is taking a leading role in the push for global sustainability standards, and its regulations could influence other countries' policies. The new rules will come into effect from January 2023.

Australian Workplace Gender Equality Bill introduced to Parliament

The Australian Workplace Gender Equality Bill is a piece of legislation aimed at promoting gender equality in the workplace in Australia. The bill requires employers with over 100 employees to report annually on their gender composition and pay equity, as well as their strategies to promote gender equality in the workplace. The aim of the bill is to improve gender equality in Australian workplaces and reduce the gender pay gap. The bill also establishes the Workplace Gender Equality Agency, which is responsible for administering and enforcing the provisions of the bill.

UN General Assembly motion for governments to consider human rights impacts of their climate policies, but tensions emerge on right to a healthy environment

The resolution passed by the United Nations General Assembly will require governments to consider the human rights impacts of their climate policies and take more ambitious action in line with existing international agreements. This will help to ensure that climate policies are not only effective in reducing emissions but also protect the rights of vulnerable communities, who are often the most affected by the impacts of climate change.

Vanuatu's leadership in championing this resolution is commendable. As a small island nation, Vanuatu is particularly vulnerable to the impacts of climate change and has been advocating for urgent action to address the issue. This resolution is a significant step forward in ensuring that climate policies are aligned with human rights and will help to accelerate global efforts to address the climate crisis.

The landmark resolution?now requests the International Court of Justice (ICJ)?to deliver an opinion on climate change and the legal consequences countries face for harming the environment.

The United Nations is facing tension as countries debate the crystallisation of a right to a healthy environment. This right would recognise the fundamental importance of a clean and safe environment to human well-being. Some countries are pushing back against this recognition, citing concerns over national sovereignty and potential economic impacts. However, advocates argue that the right to a healthy environment is essential to addressing the global climate crisis and ensuring a sustainable future for all.

Victoria launches container deposit scheme

The Victorian government has announced the launch of a new Container Deposit Scheme that will allow Victorians to get cash for returning eligible drink containers. The scheme aims to reduce litter and increase recycling rates by providing a financial incentive for people to recycle. The program will begin in 2023 and is expected to reduce litter by up to 44% and create up to 500 new jobs. Customers will receive a 10-cent refund for each eligible container returned to designated collection points across Victoria.

Asset managers file a resolution for greater transparency from Exxon Mobil on net zero plans

LGIM, one of the UK's largest asset managers, and CBIS, a faith-based investment group in the US, have joined forces to demand greater transparency from ExxonMobil regarding their plans to reach net-zero emissions by 2050. The two groups have filed a resolution urging ExxonMobil to disclose more information about their emissions reduction targets, lobbying activities, and climate-related risks. They argue that greater transparency is needed to ensure that ExxonMobil is taking adequate steps to address climate change and transition to a low-carbon economy.

Australian Government to fund sustainable finance taxonomy development

The Australian government has announced that it will provide funding for the development of a sustainable finance taxonomy. The taxonomy is a framework that will help investors and companies to identify and classify sustainable investments and activities. The funding will be provided to the Australian Sustainable Finance Initiative (ASFI) to develop the taxonomy, which will include definitions and criteria for sustainable investments across a range of sectors. The aim of the taxonomy is to provide greater clarity and transparency for investors and companies, and to support the growth of sustainable finance in Australia.

UN report warns that it may be too late to save glaciers & scientists alarmed of rapid ocean warming

A new report from the United Nations warns that it may be too late to save the world's glaciers, which are melting at an accelerating rate due to climate change. The report states that even if greenhouse gas emissions are reduced, many glaciers will continue to melt and contribute to rising sea levels for decades or centuries to come. The loss of these glaciers will have significant impacts on ecosystems, water supplies, and human societies. The report calls for urgent action to address the root causes of climate change and to adapt to the changes that are already underway.

On ocean warming, research shows how the current global warming rate is unprecedented in the past 2,000 years, according to a new study published in the journal Nature. The research team used data from ice cores, tree rings, and other sources to reconstruct temperature records dating back to the Roman Empire. They found that the current rate of warming is much faster than any natural climate variability seen in the past, and that human activities are the primary cause. The study also highlights the urgency of taking action to reduce greenhouse gas emissions and mitigate the impacts of climate change.

EU ‘fit for 55’ climate legislation passed & Deforestation Regulations adopted

The latest EU climate legislation, called "Fit for 55", has several outcomes that aim to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. Some of the key outcomes include expanding the Emissions Trading System to cover shipping and aviation, setting more ambitious targets for renewable energy and energy efficiency, phasing out the use of fossil fuels in transportation, and introducing a carbon border tax. The legislation is intended to accelerate the transition to a low-carbon economy and to position the EU as a leader in the fight against climate change. However, the legislation may also lead to increased costs for consumers and industries, as well as potential trade disputes with other countries.

The EU Deforestation Regulation has also been passed addressing the issue of deforestation and forest degradation linked to products sold on the European market. The regulation requires companies to conduct due diligence to identify and mitigate risks of deforestation and associated human rights abuses in their supply chains.

The outcomes of the regulation include the potential for reduced deforestation and associated environmental and social harms, increased transparency and traceability in supply chains, and improved accountability of companies for their impacts on forests and communities.

The implications of the regulation are significant for companies operating in sectors such as agriculture, forestry, and mining, which have been linked to deforestation. They will need to invest in systems and processes to ensure compliance with the regulation, and could face reputational and financial risks if found to be in violation. The regulation also sends a signal to other countries and markets that demand for deforestation-free products is increasing, which could stimulate action to address deforestation globally.

Asian heat wave worst ever recorded

An extreme heat wave is affecting parts of Asia and breaking temperature records in several countries. The heat wave is being described as the worst ever recorded in April, and climate scientists say it is a sign of the continuing impact of climate change. The high temperatures are leading to concerns about public health and causing disruptions to daily life. Authorities are advising people to stay indoors and take precautions to avoid heat-related illnesses.

UN passes resolution recognising the importance of social enterprises in achieving sustainable development goals

The United Nations has adopted a resolution on social and solidarity economy, recognising the important role that social enterprises and other organisations can play in achieving sustainable development goals. The resolution calls for greater support for social enterprises and other organisations that contribute to the social and solidarity economy, including through access to finance, technical assistance, and policy frameworks. The resolution also emphasises the importance of promoting social and environmental sustainability, as well as gender equality and the empowerment of marginalised communities. This historic moment is a significant step towards greater recognition and support for social enterprises and other organisations working towards sustainable development.