What we know about ESG Regulations in 2023

Key points and forecasts

In 2023, we are seeing a greater focus than ever on ESG (Environmental, Social, Governance) regulations and their importance in the financial and business world. In the following text we provide an overview of the key aspects and forecasts related to ESG regulations for this year.

Growing importance of ESG regulations

In today’s world, sustainability cannot be ignored. ESG regulations serve as a means to promote transparency and responsibility in the financial and business sectors. They aim to improve the sustainability and ethical performance of companies and investments by protecting investors from “greenwashing” (This is misleading claims about a company and its environmental and social performance.)

Global growth of ESG regulations

Supported by growing concern about climate and social challenges, ESG regulations have grown 155% over the past decade. This growth is expected to continue as markets look for more effective ways to support sustainable business and outcomes.

Key ESG regulations for 2023

 Combining ESG standards and accountability, the EU is setting itself on the path to a sustainable future through four key pieces of legislation. The first – the CSRD – imposes standards for corporate sustainability. The second – the SFDR – provides transparency on sustainable finance. The third – the UCPD – protects consumers from unfair commercial practices, and the fourth pillar, the EU Taxonomy, establishes criteria for determining sustainability in economic activities. ESG regulations are becoming an integral part of business and finance, and their role in tackling climate and social challenges is increasingly essential. For companies and investors who wish to succeed in this sustainable world, understanding and complying with ESG regulations becomes a must. It is important to stay informed and adapt to them to achieve efficiency and credibility in the marketplace.

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