31 May, 2023 / Analysis

Sustainable Fitch launches ESG tracker tool

By Laura Miller

Monitors ESG fund requirements and disclosures

Sustainable Fitch launches ESG tracker tool

Sustainable Fitch has launched an ESG standards tracker tool aimed at bringing clarity to the fast-evolving ESG regulatory environment. 

The downloadable Excel Regulations and Reporting Standards Tracker monitors sustainable taxonomies, ESG corporate disclosures, and climate-related corporate disclosures.

It also monitors ESG fund requirements and disclosures, and the main reporting standards.

Sustainable Fitch has also published a report to accompany the new tracker, which has found ESG regulations continue to make headways worldwide in 2023, with sustainable taxonomies, mandatory climate disclosures and ESG fund rules rapidly gaining ground.

Some of the most notable updates since the start of 2023 include progress made on taxonomies in Brazil, Mexico, the ASEAN region, and the EU.

Taxonomies are also increasingly covering the aspect of transition, with differences in approach to certain activities, including coal phase-out timelines, and carbon capture and storage. 

Several regulators, including those in India, Japan and South Korea, have also set their attention on greenwashing and are developing ESG fund rules, and in the EU’s the SFDR Level 2 requirements came into force. 

Mandatory corporate climate disclosures are also making progress in several jurisdictions, including Canada, Hong Kong, and New Zealand.

Market watchers are expected to closely monitor the progress of the US SEC’s climate reporting rule, which has recently been delayed to the third quarter of 2023. The draft UK green taxonomy is also planned to be published in the third quarter.

The final draft of the International Sustainability Standards Board (ISSB) rules are expected late the second quarter of 2023, which will be the first international ESG standard. The integration of the standard by regulators into their local contexts is likely to be closely monitored.

Finally India is reportedly working on a taxonomy, while China is said to be planning to make ESG disclosures mandatory for all firms listed on domestic markets.

A part of the Mark Allen Group.