An ESG momentum going along with more regulatory pressure

1. An acceleration of the dynamics to encourage actions in favor of ESG (Environment, Social and Governance).

2. A new European ESG regulatory framework to set guidelines.

3. A real challenge for all players to comply and set actions.
ESG Regulations
ESG Regulations
Minimalistic environmental icons with a character
Why comply with regulations and act for ESG

1. An obligation for companies to submit their publications to an audit by an approved third party.

2. A unique reference framework to manage your ESG strategy, reduce your negative impacts and prevent financial risks.

3. An opportunity to lower your cost of capital by leveraging your commitments to sustainability.
Minimalistic environmental icons with a character
An ecosystem of regulatory frameworks for a growing number of players

Taxonomy is a European regulation classifying activities considered as sustainable, within 6 categories

  • Climate change mitigation
  • Climate change adaptation
  • Sustainable use and protection of water and marine resources
  • Transition to a circular economy
  • Pollution prevention and control
  • Protection and restoration of biodiversity and ecosystems

Companies will have to assess their eligibility and if eligible, align with the objectives. It applies to 12,000 companies to date and 49,000 companies by 2026.

The SFDR is a European regulation in place since March 2021, on the publication of information on the sustainability of financial services (financial markets, management companies, banks and insurance): 

  • Directing capital flows to sustainable investments
  • Promote transparency, comparability and the ESG level of investments
  • Integrate dual materiality into investments => assess ESG impacts on financial performance and the impact of investments on ESG

The NFRD is the forerunner of the CSRD, a 2014 European directive that determines the rules in terms of extra-financial reporting.
Still in place it requires 11,700 companies in the EU to report on:

  • Social issues and working conditions
  • Respect for human rights
  • Anti-corruption policy
  • Diversity in management committees (in terms of age, gender, and academic and professional experience)

A European directive that will bring more transparency, standardize and enrich the accounting directives

  • CSRD shall replace and reinforce NFRD
  • It will enable a better standardization and benchmark of ESG companies performance
  • It will ntegrate the European taxonomy and its 6 environmental objectives

This directive will first apply to 11,700 companies in 2024, then to 49,000 European companies in 2026