This is the message a global securities watchdog is sending as regulators wrestle with the complex task of creating common international standards for corporate sustainability disclosures. To stop companies from “greenwashing” - or painting a flattering picture of their compliance with sustainability goals - standard-setters want to replace the current patchwork of disclosures with a global approach. It is expected to focus on disclosures measuring the impact of sustainability issues on a company. But the EU, which this week began rolling out its own rules on disclosures without waiting for the new board, wants “double materiality” or inclusion of a company’s impact on the environment as well. Maijoor said investors wanted double materiality given that over the longer term a company’s impact on the environment will affect its value.

Source: Standard Digital March 15, 2021 21:00 UTC