Charting the Course

Developments, Reporting Standards, and Emerging Energy Pathways

Introduction

The sustainable business landscape is rapidly evolving, driven by new regulations, reporting standards, and innovative solutions in the energy sector. As investors navigate this complex terrain, they must stay informed and proactive in addressing emerging developments across environmental, social, and governance (ESG) fronts.

Regulatory Updates:

European Union:

- Corporate Sustainability Reporting Directive (CSRD) took effect on January 1, 2024, requiring large companies to provide expansive sustainability disclosures on environmental, social, governance, and value chain impacts.

- The deadline for the EU Commission to publish sector-specific sustainability reporting standards under CSRD has been delayed from June 2024 to June 2026.

- Small and medium enterprises (SMEs) face indirect pressure as suppliers to large companies covered by CSRD. EFRAG has published guidance on voluntary sustainability reporting approaches for SMEs.

Photo by Christian Lue on Unsplash

United Kingdom:

- The UK government aims to make its endorsement decision and create the UK Sustainability Reporting Standards (UK SRS) in Q1 2025, a delay from the initial July 2024 target.

- The Financial Conduct Authority (FCA) will consult on how the UK SRS should apply to UK-listed companies and update the current Task Force on Climate-related Disclosures (TCFD)-aligned reporting requirements.