CSR Reporting Standards

What is Environmental Impact Assessment (EIA)? Environmental Impact Assessment (EIA) is a powerful process that ensures environmental considerations are integrated into project planning and decision-making. In simple terms, EIA predicts the potential environmental effects of proposed projects—before they are carried out. Why is EIA important? ~ Protects the environment from harmful impacts ~ Enhances decision-making by considering environmental, economic, and social factors ~ Promotes sustainable development by improving project designs ~ Involves public participation and transparency The typical EIA process includes: 1. Screening: Does the project need an EIA? 2. Scoping: What impacts should be studied? 3. Impact Analysis: Predict environmental effects. 4. Mitigation: Plan measures to reduce or avoid negative impacts. 5. Reporting: Summarize findings in an Environmental Impact Statement (EIS). 6. Review: Authorities and the public assess the EIS. 7. Decision-making: Approve, modify, or reject the project. 8. Monitoring: Ensure compliance with environmental safeguards. Main Principles: ☞ Early integration into planning ☞ Scientific and objective assessments ☞ Public involvement and transparency ☞ Focus on prevention rather than cure From highways to power plants, EIA plays a vital role in ensuring that development and environmental protection go hand in hand. P.S. Build a future where progress and planet coexist in harmony! #EnvironmentalImpactAssessment #Sustainability #Environment #CivilEngineering #EIA #SustainableDevelopment

🌱 Environmental Impact Assessment (EIA) Process Explained 1. 📌 Proposal Identification The process begins when a project proposal is submitted — like building a factory, dam, highway, etc. 2. 🔍 Screening Authorities decide if the project needs EIA. If it’s small or low-risk ➝ No EIA needed If it’s large or risky ➝ EIA Required Sometimes, an Initial Environmental Examination (IEE) is done to help make this decision. 3. 📢 Public Involvement At multiple points (like here or later), public can raise concerns or give suggestions. Their opinion matters in shaping the EIA. 4. 🧭 Scoping If EIA is needed, this step identifies what to study – air, water, soil, wildlife, people, etc. A Terms of Reference (ToR) is prepared. 5. 📊 Impact Analysis Detailed study of possible environmental impacts of the project — both positive and negative. 6. 🛡️ Mitigation and Impact Management Plans are made to reduce or manage the harmful impacts found in the analysis. 7. 📘 EIA Report Preparation All findings are compiled into a formal EIA Report, including baseline data, predicted impacts, and mitigation plans. 8. 🧪 Review Experts review the EIA report to check if it’s complete, accurate, and addresses all key issues. 9. ⚖️ Decision-making Authorities decide: ✅ Approved ➝ Project can begin with conditions. ❌ Not Approved ➝ Project is rejected or sent back. If rejected, the project can be redesigned and resubmitted. 10. 🚧 Implementation and Follow-up If approved, the project starts — but with regular monitoring to ensure environmental rules are followed. The results also help improve future EIA processes. 🔄 Public Involvement Throughout People can give input at various stages, not just at one point.

Carbon accounting is getting an overhaul. The GHG Protocol just released an update for its new Scope 2 Guidance for corporate emissions reporting. Scope 2 – the emissions from purchased energy – can be measured in two ways: Location-Based:  Measures emissions using the average carbon intensity of the local grid where electricity is consumed. Market-Based: Allows companies to report emissions based on purchasing energy certificates, like Renewable Energy Certificates (RECs). As the graph below shows, there can be huge discrepancies in Scope 2 emissions reporting depending on which of these accounting methods is applied. The market-based method allows reporters to report their emissions for purchased energy, even if the electricity isn't physically delivered to where it's used. Raising questions about accuracy and impact. The new update proposes: - a shift toward hourly and regional matching, meaning your RECs must reflect when and where you actually use electricity - Stricter boundaries for reporting, no more claiming solar from Texas for night-time operations in New York - A new marginal emissions impact metric will let companies still highlight the climate value of clean energy purchases that fall outside new inventory rules However, some warn that these changes could limit investments in renewable energy projects. A draft of the guidance is expected for comment by the end of 2025, with full implementation by the end of 2027. What do you think the GHG Protocol should do about Scope 2? Read the update here: https://lnkd.in/e5xHmpWh

Today, the "Europe Sustainable Development Report 2025" is published. The report assess the status of the #SDGs in 41 European countries. Key Message: "The report demonstrates an overall lag in SDG progress across the EU." The pace of progress on the SDGs has been slowing down in recent years. ▶️ Significant challenges remain related to responsible consumption and production (SDG12). The image below shows the current status - all countries either have major or significant challenges. The report explicitly notes in this context that the EU "generates large negative spillovers, notably via unsustainable consumption and exports." ▶️ The report also identifies "persisting challenges related to environmental and biodiversity goals, including sustainable food and land systems SDG2, SDGs 12-15)." On climate action, all countries either have major or significant challenges. ▶️ On many SDGs, progress is significantly uneven across Europe. One key reason is inequality within countries. The report captures this through a new measure - the "Leave-No-One-Behind" index. The European Commission needs to consider this upsetting status of SDG progress in Europe when thinking about the scope and scale of the upcoming #omnibus simplification package. === Access the full report and data: https://lnkd.in/d-xMxGef #sustainability, #esg, #eugreendeal

Climate-related Financial Disclosures Maturity Map 🌎 Climate-related disclosure is becoming a core expectation in corporate reporting. IFRS S2 introduces a clear structure for reporting climate-related risks, opportunities, and financial impacts, setting a new benchmark for transparency and accountability. The Maturity Map offers a structured view of the required disclosures across governance, strategy, risk management, and metrics. It supports organizations in identifying current gaps and planning the necessary improvements to align with regulatory expectations. In governance, disclosures must define the roles and responsibilities of both the board and management. This includes oversight of climate-related targets, integration into decision-making, and alignment with internal control frameworks and remuneration structures. Strategy disclosures should address how climate risks and opportunities affect business models, financial planning, and strategic direction. A credible transition plan, informed scenario analysis, and clarity on time horizons are essential elements. Risk management requires a clear explanation of how climate risks are identified, assessed, and prioritized. This process must be embedded within the broader enterprise risk framework and supported by appropriate data sources and criteria. Metrics and targets must include comprehensive data on greenhouse gas emissions across scopes, methodologies used, and progress toward defined goals. Disclosures should also reference internal carbon pricing, capital allocation, and external validation of targets. The Maturity Map is designed to guide finance and sustainability teams through the organizational shifts required to deliver complete and decision-useful reporting in alignment with IFRS S2. This tool complements the IFRS S2 standard and supports alignment with cross-industry and sector-specific metrics. Effective use of the Maturity Map can accelerate preparedness and improve the quality of climate-related financial disclosures. Source: Accounting for Sustainability (A4S) #sustainability #sustainable #esg #business #reporting

I highlighted an important topic in this week's June newsletter: the recently released 𝙎𝙪𝙨𝙩𝙖𝙞𝙣𝙖𝙗𝙡𝙚 𝘿𝙚𝙫𝙚𝙡𝙤𝙥𝙢𝙚𝙣𝙩 𝙍𝙚𝙥𝙤𝙧𝙩 2023, which provides an update on the progress of the Sustainable Development Goals (SDGs). Unfortunately, the report presents discouraging results, showing that we are far from reaching our 2030 targets. According to the report, at this halfway point, all the SDGs are significantly off-track. Only 18% of the SDG targets have been achieved, with 67% showing limited or no progress, and 15% even experiencing a regression in progress. 𝙔𝙤𝙪 𝙘𝙖𝙣 𝙖𝙘𝙘𝙚𝙨𝙨 𝙩𝙝𝙚 𝙛𝙪𝙡𝙡 𝙧𝙚𝙥𝙤𝙧𝙩 𝙝𝙚𝙧𝙚: https://lnkd.in/d-yWkeUu Despite these frustrating results, I firmly believe that we can make significant progress, especially in the business sector. Every business has a responsibility to address the SDGs. It's not about cherry-picking the goals we believe we can contribute to; it's about conducting a comprehensive assessment against all 17 SDGs to gain an overview of where we stand and then making conscious decisions. To aid in this process, B Lab, in collaboration with the UN Global Compact, developed a tool called the SDG Action Manager a few years ago. This tool can assist companies in: → 𝗙𝗶𝗻𝗱𝗶𝗻𝗴 𝗮 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴 𝗽𝗼𝗶𝗻𝘁: Identify the most relevant SDGs for your business, understand your current contribution, and determine how to take action. → 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗮𝗻𝗱 𝘀𝗵𝗮𝗿𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗶𝗺𝗽𝗮𝗰𝘁: Analyze your operations, policies, and business models in terms of their potential positive impact and risks related to the SDGs. Communicate your learning journey and the actions you are taking to improve your impact. → 𝗦𝗲𝘁𝘁𝗶𝗻𝗴 𝗴𝗼𝗮𝗹𝘀 𝗮𝗻𝗱 𝘁𝗿𝗮𝗰𝗸𝗶𝗻𝗴 𝗶𝗺𝗽𝗿𝗼𝘃𝗲𝗺𝗲𝗻𝘁: Utilize the dashboard to visualize and monitor progress towards your goals, and leverage the benchmarking feature to compare your progress with other businesses in your industry. → 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗰𝗼𝗹𝗹𝗲𝗮𝗴𝘂𝗲𝘀: Keep track of your progress as a team through a single company dashboard. 𝙔𝙤𝙪 𝙘𝙖𝙣 𝙖𝙘𝙘𝙚𝙨𝙨 𝙩𝙝𝙚 𝙎𝘿𝙂 𝘼𝙘𝙩𝙞𝙤𝙣 𝙈𝙖𝙣𝙖𝙜𝙚𝙧 𝙩𝙤𝙤𝙡 𝙩𝙝𝙧𝙤𝙪𝙜𝙝 𝙩𝙝𝙞𝙨 𝙡𝙞𝙣𝙠: https://lnkd.in/dfRJnU45 As a B Leader and ambassador of the B Corp movement in the #MENA region, I am familiar with the tool and its benefits. If you would like more information or assistance with the tool, feel free to contact me. #sustainabledevelopment #sdgs #collaboration #nadinezidani

𝗪𝗵𝗮𝘁 𝗶𝗳 𝘄𝗲 𝗰𝗿𝗼𝘀𝘀 𝟮°𝗖 𝗯𝘆 𝟮𝟬𝟯𝟳 𝗮𝗻𝗱 𝟮.𝟱°𝗖 𝗯𝘆 𝟮𝟬𝟰𝟴? That’s not worst-case modelling. That’s the average projection across 𝘕𝘈𝘚𝘈, 𝘕𝘖𝘈𝘈, 𝘌𝘙𝘈5 and other leading datasets (𝘍𝘰𝘴𝘵𝘦𝘳 & 𝘙𝘢𝘩𝘮𝘴𝘵𝘰𝘳𝘧, 2025). This changes the game for long-term investors. 𝗧𝗵𝗲 Financial Conduct Authority’𝘀 𝗔𝗕𝗖 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗔𝗱𝗮𝗽𝘁𝗮𝘁𝗶𝗼𝗻 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸 𝗼𝗳𝗳𝗲𝗿𝘀 𝗮 𝘀𝘁𝗿𝗮𝗶𝗴𝗵𝘁𝗳𝗼𝗿𝘄𝗮𝗿𝗱 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵: 𝗔 – 𝗔𝗶𝗺 𝗳𝗼𝗿 𝟭.𝟱°𝗖 But let’s be honest, 1.5°C may be breached by 2026. So, while ambition matters, we must plan for where we’re heading, not just where we hope to stay. 𝗕 – 𝗕𝘂𝗶𝗹𝗱 𝗳𝗼𝗿 𝟮.𝟬°𝗖 Use 2.0°C as your strategic baseline. Design resilience into your Strategic Asset Allocation (SAA), risk models, and mandates across tangible assets, infrastructure, property, fixed income and equity portfolios. 𝗖 – 𝗖𝗼𝗻𝘁𝗶𝗻𝗴𝗲𝗻𝗰𝘆 𝗳𝗼𝗿 𝟮.𝟱°𝗖 Stress test for systemic shocks. Ask: how would our portfolio perform under cascading physical risks, e.g. floods, fires, crop failure, migration, and water stress? And who in our ecosystem is modelling this seriously? 𝗧𝗵𝗿𝗲𝗲 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝘁𝗼 𝗱𝗶𝘀𝗰𝘂𝘀𝘀 𝗮𝘁 𝘆𝗼𝘂𝗿 𝗻𝗲𝘅𝘁 𝗾𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗯𝗼𝗮𝗿𝗱  1. Are our portfolios priced for physical climate risk, not just transition risk?  2. How are our managers building climate resilience into strategies and valuations?  3. What does a 2.5°C contingency plan look like for our fund? 𝗔𝗰𝘁𝗶𝗼𝗻: Add the FCA’s ABC framework to your next Board or Investment Committee agenda. Use it to test your governance, your SAA and your managers. This is no longer about TCFD reporting. It’s about risk, portfolio resilience, and future-proofing outcomes for your members. 𝗥𝗲𝗮𝗱 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗙𝗖𝗔 𝗖𝗙𝗥𝗙 𝗿𝗲𝗽𝗼𝗿𝘁: 𝗠𝗢𝗕𝗜𝗟𝗜𝗦𝗜𝗡𝗚 𝗔𝗗𝗔𝗣𝗧𝗔𝗧𝗜𝗢𝗡 𝗙𝗜𝗡𝗔𝗡𝗖𝗘 𝗧𝗢 𝗕𝗨𝗜𝗟𝗗 𝗥𝗘𝗦𝗜𝗟𝗜𝗘𝗡𝗖𝗘 https://lnkd.in/eYcysQnx #AdaptationFinance #BoardAgenda #ClimateAdaptation #ClimateRisk #CFRF #FCA #ABC #FiduciaryDuty #StrategicAssetAllocation 

The world is changing, is the GHG Protocol following? What is happening from now until 2028? I often hear from potential customers: “These climate and sustainability rules change so much. I’d rather wait and invest when things become stable.” But the reality is waiting is riskier than acting. The Greenhouse Gas Protocol (GHG Protocol) the global baseline for corporate climate disclosure is about to undergo its biggest reset in decades. And it will redefine what credible and compliant emissions reporting looks like. What’s changing (2025–2028): 2025: Land Sector & Removals Guidance (after years of delay) 2026: Drafts of Corporate Standard, Scope 2 & Scope 3 2027: Final versions published 2028: New guidance on Actions & Market Instruments Why it matters: - Tighter rules = less flexibility, more comparability - Scope 3 & carbon market claims under tougher scrutiny - Closer alignment with IFRS Foundation S2 & EU CSRD - Closing loopholes & raising the bar for credibility - Think of this as the IFRS moment for climate disclosure, a reset of the global accounting standards for carbon. What are the top 4 things leaders should do NOW: 1- Audit your reporting: spot weak assumptions in Scope 2 & 3 2- Engage the Board: this is as much governance as sustainability 3- Invest in data & suppliers: stronger data quality = stronger trust 4- Stay close to the process: follow drafts, anticipate impacts early Companies that prepare today will not only survive stricter rules, they’ll win investor trust, attract capital, and lead in credible climate action. This is not disruption, it’s transition. And it’s your chance to turn compliance into competitiveness. A decisive decade for climate action can also be your decisive decade for credible disclosure.

'the data reveals that artisanal mining for cobalt is a very hazardous vocation undertaken for basic survival, involving long hours, subsistence wages, and severe health impacts. The data further reveals that within the surveyed respondents, there is a high rate of forced labour and an almost 10% rate of child labour' Rights Lab, University of Nottingham recent report, Blood Batteries, The #humanrights and #environmental impacts of cobalt mining in the Democratic Republic of the Congo demonstrates the continued issues with cobalt mining. '- 36.8% of respondents met the project’s conservative criteria for forced labour - 9.2% of respondents met the project’s conservative criteria for child labour - 27.7% of respondents began working in artisanal mining as a minor - Not a single respondent was a member of a trade union, as none exist - Not a single respondent had a written agreement for their work . For those #supplychain and #procurement professionals who are able to trace cobalt to source there are potential steps to be taken: 1. Ethical and Responsible Sourcing Ensure traceability from artisanal and industrial mining sites in the DRC to final product, especially for cobalt used in EVs and electronics. Demand transparency from suppliers, require disclosure of sourcing practices, human rights due diligence, and environmental impact assessments. Prioritise suppliers who can demonstrate compliance with international labour standards and reject those linked to exploitative practices. 2. Environmental Stewardship Incorporate geospatial and water toxicity data into supplier evaluations to avoid contributing to ecological degradation. Promote circular economy principles such as battery recycling, reuse, and alternative materials to reduce dependence on high-impact cobalt mining. 3. Compliance and Governance Align with UK Modern Slavery Act, ensure supply chain mapping and annual transparency statements reflect risks in high-impact regions like the DRC. Embed environmental, social, and governance standards into tendering and contract management processes. 4. Practical Procurement Measures Use multi-quote and business case procedures to ensure value for money and ethical sourcing, as outlined in UK finance and procurement policies. Establish KPIs related to ethical sourcing, labour conditions, and environmental impact. Anticipate changes from the Procurement Act 2025 and EU Critical Raw Materials Act that may affect sourcing obligations. For the majority of buying organisations or as consumers this is a very difficult area, but as the report recommends Government's could do a lot more to reduce exploitation: 'Strengthen supply chain transparency and due diligence requirements of consumer-facing tech and EV companies with more robust legislation; laws should include strict and severe penalties as opposed to simple reporting requirements, including a potential import ban;'

How transparent should companies be about their climate impact in the US? Imagine: You’re an investor trying to assess a company’s future. You ask yourself, Are they prepared for the risks of climate change? How do their operations affect the environment, and are they doing anything? Now Imagine you don’t have clear answers because the data is inconsistent or missing. This is the reality many investors have faced for years, but big changes are on the horizon in the U.S. In March 2024, The U.S. Securities and Exchange Commission (SEC) adopted new climate disclosure rules that could reshape how companies communicate their climate risks and actions. These rules aligned with global standards like the Task Force on Climate-Related Financial Disclosures (TCFD) and the Greenhouse Gas Protocol require public companies to report on: -How climate risks affect their strategy and operations. -Greenhouse gas emissions (Scope 1 and Scope 2 for large filers, Scope 3 if material). -Board and management oversight of climate-related risks. -Financial impacts of severe weather and carbon offsets. If implemented, these rules might take effect as early as January 2025. But they’re not without challenges legal battles could shift timelines or outcomes. Meanwhile, California is setting its own pace with new laws, SB 253 and SB 261, targeting large corporations. These laws go even further: -Companies earning over $1 billion must disclose emissions across all three scopes by 2026. -Companies earning over $500 million must publish biennial reports on how climate risks affect their finances and supply chains. Here’s the thing: Scope 3 emissions are notoriously difficult to measure. Yet, they often make up the largest share of a company’s carbon footprint. So, Why does this matter? From my perspective, These regulations aren’t just about compliance. They’re about accountability. They demand that companies be honest and transparent about their environmental impact. And that’s something investors, employees, and consumers increasingly care about. According to a recent survey, 85% of investors consider ESG factors in their decisions. I believe this is where leadership matters most. Leaders who embrace these changes signal that their companies are not just surviving today but preparing for tomorrow. What do you think about these new regulations? Will they push companies to do better or overwhelm them with compliance?