Despite a host of global threats, governments worldwide continue to prioritise ESG investments, recognising the potential to confront unique climate and political challenges.
In this report, experts from GSK Stockmann explain the increasing importance of sustainable finance in Luxembourg’s fund industry and consider the challenges to overcome. In the context of a global shift towards sustainable finance, driven by an ambitious regulatory agenda in the EU, international pressure from lawmakers and scientists, as well as the demand of investors, Luxembourg continues to advance quickly on this topic.
In Switzerland, Pestalozzi reports on the country’s ever-evolving approach to ESG regulation. Underlying the seriousness, sustainable funds accounted for more than half of the total Swiss fund market in 2020, thereby exceeding conventional investment funds for the first time.
Staying in Switzerland, Advestra focuses on the country’s new reporting and due diligence obligations but also notes that further developments are likely.
The new regulations have prompted Bär & Karrer to address five misconceptions among Swiss companies with regard to conflict minerals and child labour.
Turning to European countries that are members of the EU, VdA’s authors analyse the transformative ESG requirements under the EU Taxonomy Regulation. The framework lacks clarity at present but has the potential to contribute to the transition to a low-carbon, sustainable economy.
Arendt & Medernach turns the spotlight away from the environmental issues that have prompted numerous regulations in Europe in recent years and underlines the importance of the ‘S’ in ESG. The writers note that human rights matters and social due diligence are of growing significance in the formulation of corporate strategies.
This theme is also covered by Jipyong, which analyses South Korea’s efforts to modernise its human rights regulation, and explains how domestic businesses have adapted to this new regulatory environment.
Authors from Han Kun highlight the vital role China is playing and will continue to play in the global fight against climate change. China’s government has developed a host of policies to comply with its 2060 carbon-neutral target that businesses should be mindful of.
Organisations across the globe also need to be aware of the increasing trend of litigants seeking to address adverse climate change impacts in court, as noted by Eng and Co. The article covers highly significant cases from several jurisdictions and there can be disastrous consequences for businesses that fail to address their climate-related impacts adequately.
We hope that you enjoy this report on global ESG trends written by international industry leaders.
Click here to read all the chapters from the IFLR ESG Report 2023.
