ESG Regulations: States and Countries Introduce Laws to Promote Sustainability

In the last two years, governments around the world have introduced a range of new environmental, social, and governance (ESG) regulations aimed at promoting sustainability and corporate responsibility. Here are some of the key regulations:

United States:

1. Climate Risk Disclosure Act - Introduced in March 2021, this bill would require public companies to disclose their exposure to climate-related risks and opportunities.
2. Corporate Transparency Act - Passed in January 2021, this law requires certain companies to disclose their beneficial ownership information to the U.S. Treasury Department.
3. New York Climate Leadership and Community Protection Act - Passed in July 2019, this law requires the state to achieve 100% carbon-free electricity by 2040.

Europe:

1. Sustainable Finance Disclosure Regulation (SFDR) - Introduced in March 2021, this regulation requires financial firms to disclose the environmental and social impacts of their investments.
2. EU Taxonomy - Introduced in July 2020, this regulation defines which economic activities are environmentally sustainable and can be labeled as such.
3. Climate Law - Proposed in March 2020, this legislation would set binding targets for reducing greenhouse gas emissions across the EU.

United Kingdom:

1. Modern Slavery Act - Introduced in March 2021, this law requires large businesses to disclose the steps they have taken to prevent modern slavery in their operations and supply chains.
2. Net Zero by 2050 - In June 2019, the UK became the first major economy to pass a law requiring net zero greenhouse gas emissions by 2050.

Australia:

1. Modern Slavery Act - Introduced in November 2018, this law requires businesses with a turnover of over AUD $100 million to report on the risks of modern slavery in their operations and supply chains.
2. Climate Solutions Fund - Established in February 2019, this fund provides financial incentives for businesses and individuals to reduce greenhouse gas emissions.

As governments around the world seek to promote sustainability and corporate responsibility, ESG regulations are likely to become even more widespread. Companies that prioritize ESG factors and comply with regulations can build trust with stakeholders, improve their brand reputation, and create long-term value for their shareholders.

Over 90 public companies and 70 non-profit organizations use Socialsuite for tracking and reporting on their impact. With the help of our ESG software and expert team, businesses can easily get started on impact reporting, disclose faster, and save money compared to traditional methods. Whether you're new to impact reporting or looking to enhance your current practices, Socialsuite offers the tools and expertise needed to achieve your sustainability goals. Contact us to learn more about our solutions.