Regulation
The European Commission's Director General for Taxation and Customs Affairs has announced the Commission's intention to explore options to assist industries affected by the Carbon Border Adjustment Mechanism (CBAM) such as the aluminum and steel sectors. Proposals are expected to be formulated and presented in 2026, following a review of CBAM to be conducted in 2025. The announcement reflects a focus on maintaining the competitiveness of European industry during the energy transition, a priority for the EU President's second term in office.
Standards
The International Organization for Standardization (ISO) has announced the launch of ESG Implementation Principles, a new set of guidance aimed at enabling companies globally to improve their ESG integration, performance, measurement, and reporting. The principles aim to enable more consistent reporting by companies of all sizes and are being released in response to a substantial increase in ESG regulations and scrutiny to support effective, transparent, and reliable sustainability practices.
Supply Chain
CCLA Investment Management has published its Modern Slavery UK Benchmark 2024, which assessed 110 companies in the top 100 UK listed company in the MSCI Investable Market Index 100 for evidence of modern slavery in their supply chains or indicators that forced labor was taking place. The benchmark identified that more UK companies are making disclosures around modern slavery in their operations or supply chains, however, it also identified underperformance in addressing issues once identified.
Companies & Investors
The UN Principles for Responsible Investment (PRI) has released a four-part framework to assist asset owners and managers generate a positive impact through their investment activity. The framework is comprised of the following four steps: (1) determining intention; (2) setting real-world sustainability goals; (3) taking action through a combination of tools; and (4) measuring progress. The focus of the framework is on why and how investors can play an effective role in addressing sustainability challenges proactively.
Statement
"With 80 to 90 per cent of industrial policies discriminating against foreign interests, such measures can undermine the level playing field and place strains on multilateral cooperation."
EBRD Chief Economist Beata Javorcik, November 26, 2024
In its annual transition report released on November 26, the European Bank for Reconstruction and Development (EBRD) reported a global resurgence in industrial policies aimed at protecting domestic interests, threatening international cooperation and potentially harming poorer countries. The report highlights the rapid rise of such policies in both advanced and emerging economies, driven by factors like the green transition and public support for state involvement.
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