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ESG (Environmental, Social and Governance) 2.0 - Thematic Intelligence

Publisher GlobalData
Published Jun 23, 2023
Length 97 Pages
SKU # GBDT18065209

Description

ESG (Environmental, Social and Governance) 2.0 - Thematic Intelligence


Summary

Environmental, social, and governance or ESG is moving into a different era, which we call ESG 2.0. In this second phase, there will be a greater focus on the ‘E’ component, with a shift from a voluntary regime to a mandatory one, driven by government mandates rather than consumer pressure. A host of new environmental laws are in the pipeline, relating to mandatory reporting, carbon pricing, and carbon import tariffs, as well as more state support and investment in clean energy technologies. Companies unprepared for ESG 2.0 face higher costs and lost sales.

Key Highlights

The EU will disrupt global industry by adding more sectors to its emissions trading system and phasing in the world’s first carbon border tax. This is on top of a host of other ESG reporting and due diligence requirements that will apply to both EU and non-EU businesses.

The Inflation Reduction Act (IRA), President Biden’s landmark climate policy, is the largest subsidy for clean energy and climate solutions in US history. It will direct $400 billion to develop US-based clean energy and electric vehicle manufacturing, as well as their supply chains. Anti-ESG states are among the biggest beneficiaries of IRA funding, which may make them more amenable to future climate policies.

Scope
  • It is no longer enough to have an ESG strategy focused on reporting and setting targets for some distant future date. Companies now need to show that they are taking action on ESG issues, especially emissions, across their value chain. This report outlines what companies can expect from ESG 2.0.
  • The report includes analysis of key trends shaping the ESG theme as the world moves from ESG 1.0 to the ESG 2.0 era. These trends are divided into three categories: corporate trends, macroeconomic trends, and regulatory trends.
  • It also includes an overview of global ESG-related policy initiatives, including the main policy plans and packages from the EU, the US, and China.
  • Also included is analysis of GlobalData's signals data, including mergers and acquisitions, venture financing, sustainable bonds, hiring, and social media.
  • The report incorprates GlobalData's ESG framework, designed to help companies build trust with society and set them on a path towards a sustainable future.
Reasons to Buy

ESG 2.0 will be less forgiving of poor ESG performers, especially on environmental issues. Under ESG 2.0 -
  • Companies that fall behind on decarbonization will pay higher costs and lose sales.
  • Companies will be held accountable for ESG performance across their value chain, not just their own operations.
  • ESG-related marketing and communications will attract greater scrutiny from regulators and the anti-ESG movement.
  • Companies that cannot produce robust ESG data, especially emissions data, will struggle to trade internationally, even if they are not covered by mandatory reporting requirements.
  • Companies that cannot provide low-carbon goods and services will miss growth opportunities.
    • Make sure your company is prepared for ESG 2.0 by reading this report.

    Table of Contents

    97 Pages
    Executive Summary
    Thematic Briefing
    ESG 1.0 is over
    ESG 2.0 is mandatory
    Drivers
    Disclosures
    Regulatory scrutiny
    Corporate targets
    Scope of accountability
    Financial impact
    Environmental focus
    Timeline
    Trends
    Corporate trends
    Macroeconomic trends
    Regulatory trends
    Global Policy Overview
    The EU leads on ESG regulation
    A new era for carbon pricing
    Several other EU rules are in the pipeline
    The US leads on government subsidies for clean energy
    US companies cannot ignore global rules
    The anti-ESG movement
    China faces major emissions test and green technology pushback
    China readies for ETS expansion
    The US and EU challenge China’s green technology leadership
    China will have a bigger say in future ESG reporting standards
    ESG Reporting Standards
    Signals
    Mergers and acquisitions
    Venture financing
    Sustainable bonds
    Hiring trends
    Social media trends
    Glossary
    Appendix I: GlobalData’s ESG Framework
    Breaking down GlobalData’s ESG framework
    Environmental
    Social
    Governance
    Environmental factors
    Climate change
    Pollution
    Biodiversity
    Natural resources
    Social factors
    Human rights
    Diversity and inclusion
    Health and safety
    Community impact
    Governance factors
    Corporate structure
    Risk management
    Corruption and bribery
    Ethics
    Appendix II: ESG Disclosure Metrics
    Environmental disclosures
    Social disclosures
    Governance disclosures
    Further Reading
    GlobalData reports
    Our Thematic Research Methodology
    About GlobalData
    Contact Us
    List of Tables
    Table 1: Corporate trends
    Table 2: Macroeconomic trends
    Table 3: Regulatory trends
    Table 4: The EU’s main ESG policy plans and packages
    Table 5: Companies need to prepare for a long list of upcoming ESG-related regulations
    Table 6: EU rules will have a significant impact across a variety of EU and non-EU companies
    Table 7: ESG reporting standards are being adopted globally
    Table 8: Mandatory ESG reporting standards compared
    Table 9: Largest ESG-related deals that have occurred since April 2022
    Table 10: Venture financing
    Table 11: Sustainable bonds
    Table 12: Glossary
    Table 13: Environmental factors
    Table 14: Pollution
    Table 15: Biodiversity
    Table 16: Natural resources
    Table 17: Human rights
    Table 18: Diversity and inclusion
    Table 19: Health and safety
    Table 20: Community impact
    Table 21: Corporate structure
    Table 22: Risk management
    Table 23: Corruption and bribery
    Table 24: Ethics
    Table 25: Environmental disclosures
    Table 26: Social disclosures
    Table 27: Governance disclosures
    Table 28: GlobalData reports
    List of Figures
    Figure 1: The growth of ESG 1.0
    Figure 2: Companies need to prepare for a new phase of ESG
    Figure 3: The ESG story
    Figure 4: A timeline of changes to the EU’s ETS and CBAM
    Figure 5: IRA investments will impact many sectors
    Figure 6: Texas, a leading anti-ESG state, is becoming a renewables powerhouse
    Figure 7: The IRA has spurred investment in renewables and EV and battery plants in the US
    Figure 8: China dominates EV and solar supply chains
    Figure 9: ESG-related M&A rebounded strongly in 2022
    Figure 10: Power and utilities dominate ESG-related deal activity
    Figure 11: Venture capital investors have ramped up their ESG-related investing
    Figure 12: Issuance of green bonds slowed in the second half of 2022
    Figure 13: ESG hiring is likely to resume its upward trend
    Figure 14: ESG-related hiring has increased across every sector
    Figure 15: Greenhushing may be affecting more companies
    Figure 16: GlobalData’s ESG framework
    Figure 17: GlobalData’s ESG framework - The framework covers environmental, social, and governance factors
    Figure 18: GlobalData’s ESG framework for environmental factors
    Figure 19: GlobalData’s ESG framework for social factors
    Figure 20: GlobalData’s ESG framework for governance factors
    Figure 21: Our five-step approach for generating a sector scorecard

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