International initiatives attempting to promote better climate practices are hindered by the lack of ambition in corporate ESG transparency. US companies lag behind the ambition of regulators The Securities and Exchange Commissions made headlines in March by proposing new climate disclosure rules for listed companies in the United States. Concretely, large companies would be required to disclose their Scope 1 and 2 GHG emissions, certain financial statements, as well as qualitative and governance information within registration statements and annual reports. The proposed rule has faced resistance from corporate America, with business associations including the U.S. Chamber of Commerce, the Bank Policy Institute, the National Association of Manufacturers and the American Petroleum Institute asking the SEC to scale back on the required disclosures. This reaction is a reflection of how far behind large companies in the US are in terms of ESG transparency. A recent JUST Capital report found that only 57% of the 1,000 largest companies by market capitalization (the Russell 1000 Index) disclose their Scope 1 and 2 emissions. About 43% of them disclose their emissions reductions commitments; 30% disclose Scope 3 emissions from business travel; and only 11% and 7% disclose climate commitments in line with science-based targets for Net Zero by 2050 and 1.5°C temperature rise, respectively. Even Blackrock, an investment firm known for pushing companies in its portfolio to take climate action, wrote a letter to the SEC saying that its proposed rules risked increasing compliance costs for companies and creating confusion for investors. Considering the level of backlash, the SEC will likely have no choice but to reign in its regulatory ambition, keeping the level of ESG commitment in corporate America lower than in other parts of the world. Stricter ESG reporting requirements coming into force in the EU  In the European Union, large companies have been required to report on their ESG performance since 2018, when the Non-Financial Reporting Directive (NFRD) came into effect. The NFRD applies to all public interest companies with more than 500 employees, a balance sheet that exceeds €20 million or a turnover that exceeds €40 million – about 11,700 companies in total. As a result, 100% of companies included in the NFRD disclosed their GHG emissions in 2020, and 74% included their Scope 3 emissions in the report, according to the Climate Disclosure Standards Board.  Now, the EU is preparing to introduce the Corporate Sustainability Reporting Directive (CSRD), an updated version of the NFRD that increases its reach and scope. It is estimated that about 50,000 large and small companies in Europe will have to comply with the CSRD by the time it reaches full implementation in 2026. The new rules will require them to disclose detailed and audited information on their ESG impact, in line with the EU Green Deal and Green Taxonomy. More on this: Your guide to sustainability reporting in the EU Lack of information delays the publication of ESG benchmark in Spain and Italy UK ratings agency Standard Ethics is planning to create a sustainability index for mid-sized Spanish and Italian companies, but has been forced to delay it due to the scarcity of information disclosed. In a press release, Standard Ethics revealed that the publication of the ESG index has been moved from June to November 2022, “due to the additional time required by Standard Ethics’ analysts to complete a correct and more in-depth analysis of the Indices’ potential components given the complexity of locating the necessary public documentation”. Large companies in these countries do have a sustainability index, as they are already subjected to the rules of the NFRD and required to disclose information about their ESG impact. In Spain, the FTSE4Good IBEX Index identifies Spanish companies with leading corporate responsibility practices. Carbon footprint calculation: the first step towards ESG transparency If you are a company that hasn’t yet had to comply with ESG reporting requirements, now is the time to prepare. In order to disclose your emissions, the first step is to calculate them. Check out our guide to calculate your company’s CO2 emissions or get in touch with one of our experts to start the journey. Article written with contributions from Francisco Martín Rubio, head of ESG services at ClimateTrade.

[fusion_builder_container type=”flex” hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”true” min_height=”” hover_type=”none” link=”” border_sizes_top=”” border_sizes_bottom=”” border_sizes_left=”” border_sizes_right=”” first=”true”][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hue=”” saturation=”” lightness=”” alpha=”” content_alignment_medium=”” content_alignment_small=”” content_alignment=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” margin_top=”” margin_right=”” margin_bottom=”” margin_left=”” fusion_font_family_text_font=”” fusion_font_variant_text_font=”” font_size=”” line_height=”” letter_spacing=”” text_transform=”none” text_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””] What can you do to improve sustainability in remote work? More than a year after the Covid-19 virus forced the world into lockdown, a new variant and rising infection rates in Europe are once again pushing people toward remote work. The pandemic led many companies to implement remote working to avoid workplace contagion. Now, employees that have enjoyed this flexibility in the past year expect to maintain it, at least partially, in the future. And with seemingly unending waves of large-scale Covid-19 infections, it appears remote work is here to stay. In terms of sustainability, working from home presents a very clear benefit in avoiding the daily commute and the carbon footprint that goes with it. It is estimated that carbon dioxide emissions from transportation dropped by 15% during lockdown. But remote working is not necessarily as good for the environment as it seems, since it also involves spending a lot of energy on lighting, heating or air conditioning, electronic equipment and many other resources needed to work comfortably from home. One report found that weekday home electricity consumption increased by 20% in the UK during lockdown. A growing environmental awareness has pushed people to develop new habits at home in recent years, such as avoiding waste or reducing energy consumption. For remote work to be more environmentally friendly than office work, these habits need to continue when home becomes the office. So, how can we ensure energy efficiency when working remotely? Reduce energy use The first thing that can be done to reduce the monthly expenditure is to regulate the room temperature to 20ºC in winter and 26ºC in the summer season, comfortable temperatures that don’t require too much energy. Another measure is to switch to low-consumption or LED light bulbs in the house, which is positively reflected in the electricity bill at the end of the month. Choose natural light Make the most of natural light by raising the blinds, opening the curtains and choosing light colours for the walls. This will ensure that you benefit from what the planet naturally offers and avoid putting too much pressure on its resources. Smart Houses: technology as an ally Smart homes are synonymous with monitoring, which can help you know when and where your energy is being spent. With this visibility, you can implement easy changes with a big impact on your energy consumption. Charging intervals If you have devices with a certain autonomy, it is best not to have them always plugged in. Once the battery is charged, disconnect them and keep working until you need to charge them again. If you don’t use it, turn it off In most homes and offices, extension cords and plugs are used to connect various devices to the power grid. Once you have finished your work day, don’t forget to turn off the main switch to avoid consuming unnecessary energy. Renewable energy sources If you have a choice, switch to a renewable energy provider: make the most of renewable energy sources such as solar panels or windmills. You can also implement efficient heating systems such as underfloor heating, and set up energy recycling systems in your home. There are always ways to be more sustainable in our everyday life. Now that you know how to reduce your impact in remote work, we encourage you to do it in other areas of your life. If you are a company looking to calculate carbon footprint after implementing remote work, we can help! Get in touch with our experts. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]