The world of ESG in 2023 explained

Watch the video interview with Mollie Thornton in ESG Clarity’s February 2023 digital magazine and read the glossary of terms from the video below:

SDR: The UK Financial Conduct Authority’s Sustainability Disclosure Requirements consultation ended on 25 January, with the first proposed rules around fund disclosure expected to be rolled out mid-2023.

Proposed sustainable investment label descriptions and objectives

TCFD: The Taskforce for Climate-related Disclosure has created a framework for company disclosure to help investors understand their climate impact and risk. In 2022 in the UK, compliance with this was rolled out to large corporates and pension schemes, and in 2023 large asset managers and more listed companies fall into areas that need to “comply or explain”.

Roadmap towards mandatory TCFD-aligned disclosures

TNFD: The Taskforce for Nature-related Disclosures is not as advanced as TCFD, but following in those footsteps to help companies disclosure on their biodiversity impact and risk. It is not yet mandated, but testing is taking place and the launch is expected to be announced in the second half of 2023.

Timeline for TNFD

Inflation Reduction Act: This was written into US federal law on 16 August 2022, directing spending towards reducing carbon emissions, lowering healthcare costs, funding the Internal Revenue Service and improving taxpayer compliance.