Since March 2023, Carbon4 Finance selected the three or four main news per week in sustainable finance and submitted it with a poll on Linkedin. In order to make this summary, Carbon4 Finance selected the one news which has got the maximum of votes among the others per week and summarised it all per month in this document. This paper does not take into consideration the entire amount of news in the sustainable finance ecosystem and should not be considered as the only source of information. To read more about 2024 news, follow us on Linkedin.
Synthesis of the IPCC sixth assessment report
The IPCC finalized the Synthesis Report for the Sixth Assessment Report during the Panel's 58th Session held in Switzerland. This report provides an overview of climate change knowledge, including its impacts, risks, and strategies for mitigation and adaptation, organized into three main sections: Current Status and Trends, Future Climate Change, Risks, and Long-Term Responses, and Responses in the Near Term.
New set of EU Taxonomy
The European Commission opened a consultation about a New Set of EU Taxonomy criteria for economic activities that contribute substantially to one or more of sustainable use and protection of water and marine resources or transition to a circular economy orpollution prevention and control or protection and restoration of biodiversity and ecosystems.
IEEP calls for excluding biodiversity offsets from the EU taxonomy
The Institute for European Environmental Policy (IEEP) raised concerns on the wording used in the EU Taxonomy that might allow biodiversity offsetting and called for a science-based approach in setting performance standards, urging the inclusion of agriculture and forestry in the criteria.
ISSB issues global sustainability disclosure standards
The ISSB issued inaugural global sustainability disclosure standards, IFRS S1 and IFRS S2, promoting trust in company disclosures, creating a common language for climate-related risks, and meeting global demand for consistent sustainability reporting.
Most sustainable funds not aligned with EU taxonomy
Most European sustainable funds lack EU taxonomy alignment due to insufficient disclosures, with only 1.9% reporting aligned revenue, according to this report published in July.
New Zealand central bank releases climate stress test scenario
New Zealand's central bank, RBNZ, will conduct climate stress tests on major banks, evaluating their exposure to climate risks, including extreme weather events and transition costs. The tests aim to enhance banks' capabilities in managing climate-related risks beyond traditional areas like credit, market, and liquidity.
SFDR article 8/9 future
The European Commission gathered feedback on the Sustainable Finance Disclosures Regulation (SFDR), focusing on its implementation, interaction with other sustainable finance laws, and potential changes in financial product categorization in funds article 8 and article 9, seeking insights from various stakeholders.
ESAs reports on PAIs in SFDR
The European Supervisory Authorities (ESAs) report a second time on voluntary disclosures of principal adverse impacts (PAI) under SFDR, citing improved compliance but noting variations. The report suggests enhanced explanations for non-consideration of PAIs and offers recommendations for the European Commission and National Competent Authorities.
ECB pressure on ESG rating
ECB Executive Board Member Frank Elderson calls for urgent action in sustainable finance, using the analogy of marathon running's "negative splits." Elderson highlights the financial sector's lag in adapting to climate crises, urging banks to manage environmental risks effectively. He emphasizes the need for clear strategies, regulatory consistency, and public-private collaboration.
The TCFD incorporated in IFRS
The renowned Task Force on Climate-related Financial Disclosures (TCFD) concludes its work and is absorbed by the IFRS Foundation, aligning with the consolidation of private ESG reporting standards. The IFRS aims to be a cornerstone for the European reporting framework, while in France, the Accounting Standards Authority introduces an initial guide for ESRS standards application.
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