Decade Sees 155% Surge in ESG Rules, Reshaping Finance

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by KnowESG
KnowESG_Spike in ESG reporting
Image courtesy of Freepik

ESG Book, a leading global authority on sustainability data and technology, has recently unveiled groundbreaking findings. Their latest analysis reveals a staggering 155% surge in global ESG regulations over the past decade, signifying the escalating influence of sustainability-focused policies on financial markets.

The research discloses that a remarkable 1,255 ESG regulations have been implemented worldwide since 2011, far surpassing the 493 regulations established between 2001 and 2010. This represents an astounding 647% surge in ESG regulations from the start of the millennium to the present day.

These remarkable insights were derived from ESG Book's Reporting Exchange, a cutting-edge solution that grants access to up-to-date ESG reporting requirements, standards, and indicators.

As the reporting landscape continues to grow increasingly intricate for corporations and investors, staying abreast of the latest developments and comprehending what, where, and how to report sustainability information has become an arduous and time-consuming task.

Originally developed by the World Business Council for Sustainable Development (WBCSD), the Reporting Exchange has evolved into the world's largest database for ESG policies and regulations. Now accessible through ESG Book's digital platform, the Reporting Exchange offers real-time updates on over 2,400 ESG regulations across more than 80 jurisdictions worldwide.

Within the Reporting Exchange, users can monitor over 100 subjects spanning environmental, social, and governance dimensions, covering a wide range of sectors globally. Notably, the database focuses on four key themes: climate, human rights, biodiversity, and diversity and inclusion.

Additionally, the platform provides access to a vast array of more than 1,700 unique quantitative ESG reporting indicators. These indicators are digitised and mapped according to prominent industry standards and frameworks, such as the Sustainability Accounting Standards Board (SASB), Global Reporting Initiative (GRI), Task Force on Climate-Related Financial Disclosures (TCFD), and Sustainable Finance Disclosure Regulation (SFDR).

Dr. Daniel Klier, CEO of ESG Book, emphasised the significance of ESG regulation and its impact on financial markets. He acknowledged the ongoing debate surrounding its value, with proponents highlighting its role in fostering sustainability and accountability while critics expressed concerns about compliance burdens and potential obstacles to economic growth.

Dr. Klier further emphasised that the surge in ESG regulation is expected to continue as markets increasingly prioritise effective and transparent capital allocation towards sustainable outcomes. Through the Reporting Exchange, ESG Book equips corporations with the necessary tools to navigate the complex global reporting landscape.

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Source: Business Leader


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