Volition LLP https://volitionllp.com Environment & Finance Sun, 13 Apr 2025 11:50:40 +0000 en-US hourly 1 https://wordpress.org/?v=6.8 https://volitionllp.com/wp-content/uploads/2020/05/cropped-vol-icon-32x32.png Volition LLP https://volitionllp.com 32 32 Countries reach historic deal to cut shipping emissions https://volitionllp.com/countries-reach-historic-deal-to-cut-shipping-emissions/ Fri, 11 Apr 2025 11:34:54 +0000 https://volitionllp.com/?p=6361 Countries reach historic deal to cut shipping emissions after years of intense negotiations. Countries on reached a landmark deal to cut greenhouse gas emissions from global shipping, setting mandatory fuel...

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Countries reach historic deal to cut shipping emissions after years of intense negotiations. Countries on reached a landmark deal to cut greenhouse gas emissions from global shipping, setting mandatory fuel standards and introducing an industry-wide carbon pricing mechanism.

The framework – agreed during the just-concluded meeting of the UN International Maritime Organization (IMO) Marine Environment Protection Committee – aims for net-zero emissions from the sector by 2050 and will be formally adopted in October before coming into force in 2027.

They will apply to large ocean-going vessels over 5,000 gross tonnage, which collectively account for 85 per cent of carbon dioxide emissions from the marine shipping fleet.

IMO Secretary-General Arsenio Dominguez hailed the breakthrough, emphasising the collaborative spirit that led to the deal.

“The approval of draft amendments to MARPOL Annex VI mandating the IMO net-zero framework represents another significant step in our collective efforts to combat climate change, to modernize shipping and demonstrates that IMO delivers on its commitments.”

MARPOL Annex VI refers to provisions in the International Convention for the Prevention of Pollution from Ships, specifically addressing air pollution.

It already includes mandatory energy efficiency requirements for ships and has 108 Parties covering roughly 97 per cent of the world’s merchant shipping fleet by tonnage.

A turning point for the shipping industry

The framework introduces a dual approach: a global fuel standard that will progressively lower the annual greenhouse gas fuel intensity of marine fuels, and a greenhouse gas pricing mechanism requiring high-emitting ships to pay for their excess pollution.

Under the new system, ships that exceed emissions limits will need to acquire remedial units to offset their excess pollution. Meanwhile, vessels operating with zero or near-zero emissions will be eligible for financial rewards, creating a market-driven push toward cleaner maritime transport.

Supporting vulnerable countries

A key element of the new framework is the IMO Net-Zero Fund, which will collect revenues from the carbon pricing mechanism.

These funds will support innovation, research, infrastructure and transition initiatives in developing countries.

It will also be used to mitigate negative impacts on vulnerable nations, such as small island developing States (SIDS) and least developed countries (LDCs), which bear the brunt of both climate change and economic pressures in the shipping sector.

Next steps: Adoption and implementation

The draft regulations will undergo formal adoption in October 2025.

If ratified during the IMO session, as expected, the measures will enter into force in 2027, giving the industry time to adapt to new requirements and invest in alternative fuels and technologies.

The International Maritime Organization

The International Maritime Organization (IMO) is the UN specialized agency responsible for the safety and security of global shipping and the prevention of marine and atmospheric pollution by ships.

Established in 1948 and headquartered in London, it develops international treaties, such as the International Convention for the Safety of Life at Sea (SOLAS) or the International Convention for the Prevention of Pollution from Ships (MARPOL).

Keywords: Shipping Emissions, Carbon Pricing Mechanism, Greenhouse Gas Emissions
Source: UN News, 11 April, 2025
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Extended Producer Responsibility for Packaging https://volitionllp.com/extended-producer-responsibility-for-packaging/ Sat, 14 Dec 2024 19:12:11 +0000 https://volitionllp.com/?p=6341 Draft Environment Protection (Extended Producer Responsibility for Packaging made from paper, glass and metal as well as sanitary products) Rules, 2024 The Ministry of Environment, Forest and Climate Change (MoEFCC)...

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Draft Environment Protection (Extended Producer Responsibility for Packaging made from paper, glass and metal as well as sanitary products) Rules, 2024


The Ministry of Environment, Forest and Climate Change (MoEFCC) has issued the draft Environment Protection (Extended Producer Responsibility for Packaging made from paper, glass, and metal as well as sanitary products) Rules, 2024. Producers, importers, and brand owners who introduce any packaging or sanitary products into the market will be responsible for collecting such packaging or sanitary products. The Extended Producer Responsibility (EPR) targets will be determined based on the type of packaging material. The rules are proposed to come into force on 1 April 2026.

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IFC Partners with Axis Bank to Provide Climate Loan, Blue Finance https://volitionllp.com/ifc-partners-with-axis-bank-to-provide-climate-loan-blue-finance/ Mon, 07 Oct 2024 11:06:20 +0000 https://volitionllp.com/?p=6332 The International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution, is partnering with Axis Bank, one of the largest private sector banks...

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The International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution, is partnering with Axis Bank, one of the largest private sector banks in India, to provide a $500 million loan to help develop a blue finance market and scale up financing of green projects in India.

This is IFC’s first blue investment in India and the first blue transaction by a financial institution in the country.  Blue loans are financing instruments that raise and earmark funds for investments such as water and wastewater management, reduction of marine plastic pollution, restoration of marine ecosystems, sustainable shipping, eco-friendly tourism, and offshore renewable energy.

This transaction is also the largest green financing by IFC in the country. The funding will enable Axis Bank to expand its climate finance portfolio.

With India’s rapid urbanization and economic growth, there is a substantial opportunity to enhance water and energy efficiency. The water and wastewater treatment market size was estimated at $1.6 billion as of 2022 and is expected to reach $3 billion by 2029. Additionally, the green buildings sector presents an investment opportunity of $1.4 trillion by 2030, driven by a need for sustainable infrastructure. Most of these investments need to come from the private sector to offset limited public funding.

Axis Bank on Sustainable Finance

Speaking on the occasion, Amitabh Chaudhry, Managing Director and Chief Executive Officer of Axis Bank said, “With the increasing effects of climate change into the global ecosystem and the growing awareness of environment sustainability, it’s imperative for banks to adopt sustainable lending practices. We are excited to partner with IFC with whom we share a common vision of strengthening standards and lending practices to boost sustainable finance in India. Given Axis Bank’s focus on growing its climate and sustainable finance portfolios, along with its large size, systemic importance, and wide reach, we hope to be a strong and stable partner for IFC in the key focus area of climate finance in India.”

“We are thrilled to announce our inaugural blue loan in India, marking our largest climate finance initiative in the country to date. India serves as an exceptional testing ground for innovative approaches to climate adaptation. This loan will not only catalyze private sector investment in this emerging asset class but also direct long-term funding toward fostering a sustainable blue economy. Additionally, it aims to enhance financing for climate projects across India, with a strong emphasis on green buildings that will mitigate climate change impacts and generate jobs. Partnering with Axis Bank, a like-minded ally, we are committed to propelling India’s sustainable and inclusive growth forward,” said Makhtar Diop, Managing Director of IFC.

Axis Bank’s Milestone on Sustainable Finance

Axis Bank is among the first banks in India to have a board-approved Environmental, Social and Governance (ESG) policy for lending that adheres to IFC Performance Standards. The Bank remains committed to supporting India’s climate agenda with public commitment of incremental financing of Rs 60,000 crores (approximately $7.2 billion) in ESG-aligned sectors by 2030 (from August 2021), of which Rs 30,000 crores (approximately $3.1 billion) of incremental financing was achieved by March 2024.

Axis Bank has been a pioneering issuer of sustainable instruments among Indian financial institutions. It issued Basel III additional tier I bonds in 2021 and senior green bonds in 2016. The bank, with a long-standing history of being a pioneer in sustainable financing, will use IFC’s financing to promote resource-efficient growth and to create jobs, while protecting the critical clean water resources and supporting the nation’s climate goals.

As part of its advisory services, IFC will support Axis Bank in growing its green buildings portfolio, including for affordable housing projects and building capacity for impact reporting. Through this engagement, IFC aims to catalyze the green buildings’ market in India. IFC will also provide a performance-based incentive of up to $2.9 million from the UK-IFC Market Accelerator for Green Construction (MAGC) program aimed at supporting the design and construction of green buildings certified by IFC’s EDGE (Excellence in Design for Greater Efficiencies) green buildings standard.

IFC has built a successful track record in the green finance market and is laying the groundwork for launching and scaling blue finance across the globe. Since 2020, IFC has provided more than $1.9 billion dollars in blue loans and bonds to private institutions around the world.

About IFC

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.

About Axis Bank

Axis Bank is third largest private-sector bank in India. The Bank serves various customer segments, ranging from large and mid-corporates to SMEs and agriculture and retail businesses. As of 30th June 2024, the Bank had 5,427 branches, including extension counters, 15,014 ATMs, and 2,987 touchpoints across India, facilitating the Bank to reach out to a vast population of India with its wide range of products and services. The Axis Group includes Axis Mutual Fund, Axis Securities Ltd., Axis Finance, Axis Trustee, Axis Capital, A.TReDS Ltd., Freecharge, Axis Pension Fund and Axis Bank Foundation.

Source: IFC News, Dated 7 October 2024
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Limited Assurance vs Reasonable Assurance https://volitionllp.com/limited-assurance-vs-reasonable-assurance/ Sun, 03 Mar 2024 17:31:15 +0000 https://volitionllp.com/?p=6313 SEBI mandated assurance of BRSR for companies in phases. We help you understand the types of assurances & differences - reasonable assurance & limited assurance.

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Limited assurance vs reasonable assurance

SEBI mandated assurance of BRSR for companies in phases. We help you understand the types of assurances & differences – reasonable assurance & limited assurance.

Where the client and the practitioner establish that an assurance service is being sought, ISAE 3000 (Revised) provides two options; reasonable assurance and limited assurance.

For a reasonable assurance engagement the practitioner needs to reduce the assurance engagement risk (the risk that an inappropriate conclusion is expressed when the information on the subject matter is materially misstated) to an acceptably low level as the basis for a positive form of expression of the practitioner’s conclusion. Such risk is never reduced to nil and therefore, there can never be absolute assurance.

For a limited assurance engagement the practitioner collects less evidence than for a reasonable assurance engagement but sufficient for a negative form of expression of the practitioner’s conclusion. The practitioner achieves this ordinarily by performing different or fewer tests than those required for reasonable assurance or using smaller sample sizes for the tests performed.

The practitioner uses the same risk basis for planning their work and the same levels of materiality in evaluating the outcome of tests for reasonable and limited assurance engagements. Since the extent of evidence collected for a limited assurance engagement may be limited due to the reduced sample sizes and test coverage adopted, the level of risk of material misstatement remaining is potentially higher than in a reasonable assurance engagement. Hence, the practitioner is not in a position to express the same degree of confidence as in a reasonable assurance engagement.

The conclusion in a limited assurance engagement is accordingly framed in a negative sense: “Based on the procedures performed, nothing came to our attention to indicate that the management assertion on XYZ is materially misstated.” In contrast with a reasonable assurance conclusion which would be formed in a positive sense, i.e.: “Based on the procedures performed, in our opinion, the management assertion on XYZ is reasonably stated.”

Practitioners may be familiar with the limited nature of the work performed in relation to a published review opinion for listed company half-year financial statements. The half-year review is an example of a limited assurance engagement that is conducted by the company’s auditor under ISRE 2410.

These reviews are ordinarily based on inquiry of management and analytical procedures. Analytical procedures typically involve the comparison of actual information against the expectations formed based on the prior year and industry average. The limited nature of the work is justified because the practitioner has a base of history with the client’s previous financial statement audit and an understanding of the client’s control environment which generally helps the practitioner to determine the reliability of the information produced by management.

While there are certain parallels between half-year reviews and other limited assurance engagements conducted under ISAE 3000 (Revised), there are also differences.

Half-year review of financial statements

The half-year review is a defined concept in relation to a clearly defined subject matter, i.e. the financial statements, and for which there is an expectation of a strongly defined internal control environment appropriate for the size and complexity of the client, structure through accounting practices, double entry book-keeping and other checks and balances required by company law and regulation.

The company’s auditor will have obtained a sound understanding of these matters and conducted recent tests of controls and substantive procedures as part of the annual audit. This background therefore reduces the need for detailed tests beyond inquiry, analytical review and other procedures of limited nature.

Limited assurance over non-financial information

In contrast, a non-financial limited assurance engagement may tackle a subject matter which is less well defined and for which the control environment is far less mature and robust. For example, the calculation of a company’s carbon footprint may have been performed by an individual and the results collected on a spreadsheet and supported by files of memorandum information.

The subject matter information is unlikely to be extracted from a double entry bookkeeping system, reducing the possibility of obtaining cumulative evidence through directional testing. Moreover the relationships, if any, between the non-financial subject matter and trends in other internal and external information sources may not have been identified. Accordingly, the comfort the practitioner can obtain from analytical review alone may be greatly reduced.

INTERIM REVIEW OF FINANCIAL INFORMATION LIMITED ASSURANCE OVER NON-FINANCIAL INFORMATION
Comfort sought As interim review has become standard practice for some entities, stakeholders expect a consistent level of comfort from review reports. ISAE 3000 (Revised) is intended to allow greater flexibility for the preparer, user and assurance provider to agree what level of comfort is relevant to the purpose of the information. ISAE 3000 (Revised)  limited assurance reports can convey a wider range of levels of comfort.
Nature of applicable standards ISRE 2410 is relatively prescriptive, including details of enquiries to be made, tests to be performed and tests that are not usually necessary. ISAE 3000 (Revised)  is intended to be applicable to a broad range of subject matters and levels of comfort therefore the standard cannot be prescriptive.
Reporting framework/basis of preparation/criteria GAAP is well-established, relatively consistently applied and familiar to the auditor. Basis of preparation may be newly developed, developed in-house by the entity, not may be unlike others encountered by the assurance practitioner.
Information systems A double-entry accounting system, over which the auditor may have already obtained comfort. Likely to integrated with and reconcilable to other information systems within the entity. May be manual and one-sided. May not be integrated with or reconcilable to other information systems within the entity.
Trends and relationships in subject matter information Likely to be well-observed and understood, including relationships with external data sources, allowing persuasive trend analysis and other substantive analytical review. May not have been observed for long or at all, and/or may not be understood. Trend analysis and other substantive analytical review may be unpersuasive or not possible at all.

The concept of limited assurance allows the assurance provider to accept engagements that provide a range of potential levels of comfort to users of the resulting assurance reports. The only restrictions are that limited assurance should deliver a lower level of comfort than reasonable assurance and that the level of comfort provided should be meaningful.

Because a limited assurance report could represent such a range of levels of comfort, it can be much more important for the assurance practitioner to:

  • ensure there is a good shared understanding of the scope of work agreed with the responsible party and/or users;
  • document the scope of work in an appropriate level of detail in the terms of engagement; and
  • describe the work performed in a plain English in the assurance report.
Reference: The Institute of Chartered Accountants in England and Wales (ICAEW)

BRSR, Core BRSR, BRSR Assurance, Reasonable Assurance, Limited Assurance, SEBI

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Benefits of GCC – Global Capability Center Services https://volitionllp.com/benefits-of-gcc-global-capability-center-services/ Fri, 26 Jan 2024 10:57:28 +0000 https://volitionllp.com/?p=6299 GCCs - Global Capability Centers are strategic units established by MNCs to leverage talent, drive innovation, & enhance operational efficiency in key locations worldwide.

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Benefits of GCC (Global Capability Center Services)

Global Capability Centers (GCCs) are strategic units established by multinational corporations to leverage talent, drive innovation, and enhance operational efficiency in key locations worldwide. These centers serve as hubs for delivering a wide range of specialized services, supporting various business functions across diverse industries.

Key Services Offered by Our Global Capability Centers

1. Business Process Outsourcing (BPO)

GCC offer comprehensive BPO services spanning finance and accounting, human resources, procurement, customer service, and more. Leveraging advanced technologies and skilled professionals, GCCs streamline processes, optimize costs, and enhance service quality for their parent companies.

2. Shared Services

GCCs serve as centers of excellence for shared services, delivering centralized support functions including finance and accounting, HR operations, IT support, procurement, legal services, and compliance. Through standardized processes and scalable service delivery models, GCCs enhance operational efficiency and drive cost savings for their parent organizations.

Benefits of Global Capability Center Services

Cost Efficiency

By leveraging skilled talent pools in strategic locations, GCCs offer cost-effective solutions compared to traditional in-house operations or outsourced services.

Access to Global Talent

GCCs provide access to diverse talent pools with specialized skills, language proficiency, and cultural understanding, enabling companies to meet evolving business requirements and expand their global footprint.

Innovation and Agility

GCCs foster a culture of innovation, collaboration, and continuous improvement, driving agility and enabling companies to adapt quickly to market changes and emerging technologies.

Risk Mitigation

GCCs help mitigate operational and regulatory risks by ensuring compliance with international standards, data security protocols, and regulatory requirements in different geographies.

Strategic Alignment

GCCs align with the strategic objectives of their parent organizations, supporting growth initiatives, market expansion, and value creation through tailored services and solutions.

Volition’s Strategic Approach of Setting up GCCs

Volition specializes in setting up GCCs for firms establishing a Global Capability Center (GCC) is a strategic decision for multinational corporations aimed at leveraging global talent, driving operational efficiency, and enhancing competitiveness. A well-defined strategic approach is essential to ensure the success and effectiveness of GCCs in supporting the parent organization’s objectives.

1. Alignment with Corporate Strategy

  • Define Objectives: Clearly articulate the strategic objectives and goals of setting up a GCC, aligning them with the overall corporate strategy.
  • Assess Business Needs: Conduct a thorough assessment of business needs and identify specific areas where a GCC can add value, such as cost optimization, talent access, innovation, or market expansion.
  • Stakeholder Buy-in: Gain buy-in from key stakeholders, including senior management, business units, and local government authorities, to ensure alignment and support for the GCC initiative.

2. Location Selection and Site Assessment

  • Strategic Location: Evaluate potential locations based on strategic factors such as talent availability, cost competitiveness, infrastructure, geopolitical stability, regulatory environment, and proximity to target markets.
  • Site Assessment: Conduct a detailed site assessment considering factors like real estate availability, facilities, transportation, connectivity, and quality of life for employees.

3. Talent Strategy and Skill Development

  • Talent Acquisition: Develop a comprehensive talent acquisition strategy to attract, retain, and develop skilled professionals aligned with the GCC’s objectives and functional areas.
  • Skill Development: Invest in continuous skill development programs, training, and career growth opportunities to nurture talent and ensure alignment with evolving business needs.

4. Governance and Operational Model

  • Governance Structure: Establish a robust governance framework comprising decision-making processes, reporting structures, performance metrics, and accountability mechanisms to ensure effective oversight and alignment with corporate governance standards.
  • Operational Model: Design an optimal operational model, considering factors such as organizational structure, process standardization, technology enablement, service delivery models (e.g., shared services, outsourcing), and scalability to support future growth.

5. Technology and Infrastructure

  • Technology Enablement: Invest in cutting-edge technologies, digital tools, and infrastructure to support GCC operations, enhance productivity, and facilitate collaboration across geographies.
  • Data Security: Implement robust data security measures and compliance protocols to safeguard sensitive information and ensure regulatory compliance in different jurisdictions.

6. Risk Management and Compliance

  • Risk Assessment: Conduct a thorough risk assessment to identify and mitigate potential risks related to operational, regulatory, legal, cybersecurity, and geopolitical factors.
  • Compliance Framework: Establish a comprehensive compliance framework aligned with local regulations, industry standards, and corporate policies to ensure ethical conduct and regulatory adherence.

7. Change Management and Culture Transformation

  • Change Management: Implement a structured change management approach to facilitate smooth transitions, mitigate resistance, and ensure adoption of GCC initiatives across the organization.
  • Culture Transformation: Foster a culture of collaboration, innovation, and continuous improvement within the GCC, aligned with the parent organization’s values and culture.

Contact us to find out, how we can assist you in setting up GCC for you.

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How does a Social Stock Exchange work? https://volitionllp.com/how-does-a-social-stock-exchange-work/ Sun, 03 Sep 2023 20:04:37 +0000 https://volitionllp.com/?p=6281

A Social Stock Exchange (SSE) is a specialized financial market that connects investors with organizations that have a strong social or environmental mission. These exchanges aim to facilitate impact investing by providing a platform for socially responsible companies and projects to raise capital from like-minded investors. The SSEs instituted to date have functioned across the spectrum of impact funding, from simple grants to innovative finance to impact investment. Here’s how a Social Stock Exchange typically works:

1. Listing and Eligibility:

Social enterprises and organizations interested in raising capital through the SSE must meet specific eligibility criteria that demonstrate their commitment to social or environmental impact. These criteria may include demonstrating a clear social or environmental mission, financial stability, transparency, and governance standards.

2. Investor Participation:

Investors who are interested in supporting socially responsible initiatives can become members of the SSE. They may need to meet certain criteria or align with the exchange’s mission and values. These investors are typically looking to achieve a financial return on their investments while also making a positive impact on society or the environment.

3. Due Diligence:

The SSE conducts thorough due diligence on potential issuers (organizations seeking to raise funds). This process involves assessing the organization’s mission, financial performance, governance, and impact metrics. The goal is to ensure that listed entities are genuinely committed to their social or environmental objectives.

4. Listing and Trading:

After passing the due diligence process, eligible organizations are listed on the SSE. They may issue securities such as shares or bonds. Investors can then trade these securities on the exchange’s platform.

5. Impact Reporting:

Social enterprises listed on the SSE are often required to provide regular impact reports, demonstrating how they are achieving their social or environmental goals. This transparency helps investors understand the real-world impact of their investments.

6. Market Support:

Social Stock Exchanges may offer additional support to listed organizations, such as access to mentorship, networking opportunities, and resources to help them grow and fulfill their mission.

7. Secondary Market Trading:

Investors can buy and sell shares or bonds of listed social enterprises on the secondary market. The exchange facilitates these transactions, allowing for liquidity and price discovery.

8. Investor Engagement:

Some SSEs encourage investor engagement with the listed organizations. This can involve shareholders attending annual meetings or engaging in dialogues about the company’s impact goals and financial performance.

9. Regulation:

Social Stock Exchanges typically operate under the regulatory framework of their respective countries. They must adhere to securities laws and regulations, just like traditional stock exchanges.

10. Impact Measurement and Verification:

SSEs often work with third-party organizations to verify the impact claims of listed entities, ensuring that they are indeed making a positive difference in the intended areas.

 

The primary goal of a Social Stock Exchange is to channel investment capital toward organizations that are working to address social and environmental challenges while providing investors with opportunities to align their investments with their values. It’s worth noting that the specific operations and regulations of SSEs can vary by country and exchange, so it’s essential to research the requirements and offerings of a particular exchange if you’re interested in investing or listing a social enterprise.

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ISSB issues sustainability disclosure standards https://volitionllp.com/issb-issues-sustainability-disclosure-standards/ Mon, 26 Jun 2023 06:41:18 +0000 https://volitionllp.com/?p=6275 ISSB has today issued its inaugural standards IFRS S1 and IFRS S2 - ushering in a new era of sustainability-related disclosures in capital markets worldwide.

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ISSB issues inaugural global sustainability disclosure standards

The International Sustainability Standards Board (ISSB) has today issued its inaugural standards—IFRS S1 and IFRS S2 —ushering in a new era of sustainability-related disclosures in capital markets worldwide. The Standards will help to improve trust and confidence in company disclosures about sustainability to inform investment decisions.

And for the first time, the Standards create a common language for disclosing the effect of climate-related risks and opportunities on a company’s prospects.

The Standards will be officially launched by ISSB Chair Emmanuel Faber at the IFRS Foundation’s annual conference today and through a week of events hosted by stock exchanges around the world, including those in Frankfurt, Johannesburg, Lagos, London, New York, Santiago de Chile; the ASEAN Capital Markets Forum is also hosting a launch event in Singapore.

Emmanuel Faber’s remarks—available to watch live on the IFRS Conference page from 13:30 BST—will focus on the role the ISSB Standards will play in ensuring that companies disclose globally comparable information about sustainability-related risks and opportunities that is decision-useful for investors.

About the Standards

IFRS S1 provides a set of disclosure requirements designed to enable companies to communicate to investors about the sustainability-related risks and opportunities they face over the short, medium and long term.

IFRS S2 sets out specific climate-related disclosures and is designed to be used with IFRS S1.

Both fully incorporate the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

A global baseline

The ISSB developed IFRS S1 and IFRS S2 with the benefit of extensive market feedback and in response to calls from the G20, the Financial Stability Board and the International Organization of Securities Commissions (IOSCO), as well as leaders in the business and investor community.

This support for a comprehensive global baseline of sustainability-related disclosures demonstrates the widespread demand for a consistent understanding of how sustainability factors affect companies’ prospects.

The ISSB Standards are designed to ensure that companies provide sustainability-related information alongside financial statements—in the same reporting package. The Standards have been developed to be used in conjunction with any accounting requirements. They are also built on the concepts that underpin the IFRS Accounting Standards, which are required by more than 140 jurisdictions. The ISSB Standards are suitable for application around the world, creating a truly global baseline.

Adoption of the ISSB Standards

Now that IFRS S1 and IFRS S2 are issued, the ISSB will work with jurisdictions and companies to support adoption. The first steps will be creating a Transition Implementation Group to support companies that apply the Standards and launching capacity-building initiatives to support effective implementation.

The ISSB will also continue to work with jurisdictions wishing to require incremental disclosures beyond the global baseline and with GRI to support efficient and effective reporting when the ISSB Standards are applied in combination with other reporting standards.

Source: IFRS News, 26 June 2023

Contact us to find out how we can assist you with assisting you with the ISSB disclosures.

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Second Environment and Climate Sustainability Working Group (ECSWG) https://volitionllp.com/second-environment-and-climate-sustainability-working-group-ecswg/ Sun, 21 May 2023 19:17:31 +0000 https://volitionllp.com/?p=6269 G20’s Second Environment and Climate Sustainability Working Group (ECSWG) Meeting to be Held in Gandhinagar The Ministry of Environment, Forest and Climate Change is pleased to announce that the Second...

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G20’s Second Environment and Climate Sustainability Working Group (ECSWG) Meeting to be Held in Gandhinagar

The Ministry of Environment, Forest and Climate Change is pleased to announce that the Second Environment and Climate Sustainability Working Group (ECSWG) meeting will be held in Gandhinagar from March 27-29, 2023.

The Second ECSWG meeting will bring together G20 member countries, invitee countries, and international organizations to focus on the global environment and climate change agenda and build on the inputs provided during the first working group meeting. The conference will commence with a side event on Water Resources Management led by the Ministry of Jal Shakti, where G20 member countries will make presentations on best practices in this subject.

On 27th March 2023, the side event of second G20 ECSWG meeting will commence with an introductory note on India’s capability to make WATER everyone’s business focusing on importance of integrated water resource management by Ms. Debashree Mukherjee, Special Secretary, Water Recourses, Ministry of Jal Shakti. The address will be followed by presentations of best practices  on water resources management by twenty G20 members. The best practices shared by G20 members will be compiled into a compendium enabling knowledge exchanges and cross learning.

This will be followed by an excursion to ancient stepwell Adalaj Vav, which will demonstrate the ancient water management practices of India and its long-standing tradition of conserving water resources in an appropriate ambience.

Thereafter, the delegation will visit Sabarmati Siphon structure and Sabarmati Escape.  Sabarmati Siphon is a cross regulator structure constructed on Narmada Main Canal, an incredible feat of engineering where water flows through a huge tunnel built under the bed of the river and continues on the other side. The canal siphon has a water carrying capacity of approx. 900 cubic meters per second. Sabarmati escape, only a half kilometer upstream, having 425 cubic meters per second of discharge capacity, facilitates a safe evacuation of canal in case of emergency.

Afterwards, the delegation will witness the scenic beauty of the Sabarmati River Front.   The Sabarmati Riverfront Development has been envisaged as a comprehensive development of approximately 11 kilometres of length on both the banks of the Sabarmati River. The project approach is to bring about an overall environmental improvement, social upliftment and sustainable development along the Riverfront.

On 28th March 2023, the session will commence with the Inaugural Address by Ms. DarshanaVikramJardosh, Hon’ble Union Minister of State (Railways & Textiles), GOI.

Thereafter, Ministry of Jal Shakti will showcase its major interventions in the field of water resource management through presentations on projects titled NamamiGange, Climate Resilient Infrastructure, participatory Ground Water Management, Jal Jeevan Mission, and Swachh Bharat Mission -Universalization of Water, Sanitation & Hygiene and its effects.  This will be followed by comments/discussions by G20 countries, invitee countries and international organisations.

The organizations under Ministry of Jal Shakti will also put-up stalls on various themes including Atal BhujalYojana, Swach Bharat Abhiyan, Jal Jeevan Mission, NamameGange, Jal Shakti Abhiyan, National Water Mission etc during the meeting showcasing and sharing the high-quality work with the delegates.

Under Biodiversity and Land Degradation theme, the ECSWG will focus on strengthening the roadmap for G20 Global Land Initiative, developing the G20 knowledge and solutions platform, and compiling best practices. For Oceans & Blue Economy, the ECSWG aims to further the principles for a sustainable and resilient Blue Economy, facilitate technical studies on accelerating the transition to a sustainable and resilient Blue Economy, garner support for the G20 Osaka Report on addressing actions against marine litter, and facilitate the Ocean 20 Dialogue. For Circular Economy and Resource Efficiency, the ECSWG will accelerate knowledge exchanges on three sub-themes:

  1. Circular Economy in the steel sector,
  2. Extended Producer Responsibility (EPR) for Circular Economy and circular bioeconomy, and
  3. Seek further inputs on the proposed G20 Resource Efficiency and Circular Economy Coalition (G20 RECEIC).

We look forward to discussing the outline of the communique and seek inputs.

The delegates will have an opportunity to experience Gujarat’s vibrant cultural traditions through specially curated dance and music performances, and will also have the opportunity to taste the local cuisine during their visit.

The 2nd ECSWG meeting is a critical step in fostering the efforts of the G20 countries, invitee countries, and international organizations towards a sustainable and resilient future. The Ministry of Environment, Forest and Climate Change is committed to working with all stakeholders to drive outcomes under each of the priority areas, and to achieve a sustainable and resilient future for all.

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EU sustainability timeline from ESMA https://volitionllp.com/eu-sustainability-timeline-from-esma/ Fri, 03 Mar 2023 14:29:50 +0000 https://volitionllp.com/?p=6239 The European Securities and Markets Authority (ESMA) has played a significant role in promoting sustainability in the European Union (EU). Here is a timeline of some of the key developments...

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The European Securities and Markets Authority (ESMA) has played a significant role in promoting sustainability in the European Union (EU). Here is a timeline of some of the key developments and initiatives from ESMA in this area:

2019: ESMA published its first annual report on sustainable finance, highlighting the increasing importance of sustainability in the EU financial system.

2020: ESMA issued guidelines on disclosure of climate-related risks for investment firms and credit institutions. The guidelines are designed to assist firms in understanding and disclosing their exposure to climate risks, and to enhance the comparability of climate risk information across the EU.

2021: ESMA published its final report on sustainability-related disclosures in the insurance sector, outlining the expectations for insurance companies to disclose information about their sustainability practices and impact.

2021: ESMA also issued draft technical advice to the European Commission on possible delegated acts regarding sustainability-related disclosures in the EU Regulation on sustainability-related disclosures in the financial services sector (SFDR). The draft technical advice provides recommendations on how to implement the SFDR’s provisions, including the required sustainability-related disclosures.

These initiatives demonstrate ESMA’s commitment to promoting sustainability in the EU financial system, and to enhancing the transparency and accountability of companies in their sustainability practices.

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Role of Industry 4.0 in ESG https://volitionllp.com/role-of-industry-4-0-in-esg/ Thu, 02 Mar 2023 17:32:12 +0000 https://volitionllp.com/?p=6229

Role of Industry 4.0 in ESG

Industry 4.0 is playing an increasingly important role in promoting environmental, social, and governance (ESG) principles in the manufacturing industry. ESG is a set of standards that companies must adhere to in order to promote sustainable business practices and ensure that they are socially responsible.

One of the key ways that Industry 4.0 is promoting ESG principles is through the use of smart factories. These factories are designed to be more energy-efficient, with automated systems that can optimize energy usage and reduce waste. This not only reduces the environmental impact of manufacturing but also helps companies to save on energy costs.

Industry 4.0 is also promoting ESG principles through the use of sustainable materials and products. With the integration of IoT and AI, manufacturers can track and monitor the environmental impact of their products throughout their lifecycle. This enables them to identify areas where they can reduce waste, improve energy efficiency, and promote sustainable business practices.

Another way that Industry 4.0 is promoting ESG principles is through the use of automation and robotics. With the use of these technologies, companies can reduce the need for manual labor, which not only improves efficiency but also reduces the risk of accidents and injuries in the workplace. This helps to promote social responsibility and ensure that companies are providing safe working environments for their employees.

Industry 4.0 is also promoting ESG principles through the use of data analytics. With the integration of IoT and AI, manufacturers can collect and analyze data on their supply chain, production processes, and product lifecycle. This enables them to identify areas where they can improve sustainability and reduce their environmental impact.

In conclusion, Industry 4.0 is playing an important role in promoting ESG principles in the manufacturing industry. With the integration of IoT, AI, automation, and robotics, companies can reduce their environmental impact, promote sustainable business practices, and ensure that they are socially responsible. As the world becomes more focused on sustainability and ESG principles, Industry 4.0 will continue to play an important role in promoting sustainable business practices and ensuring that companies are socially responsible.

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