From corporate net-zero emissions promises to regulatory changes that will make climate-related disclosure practices mandatory for companies, the stage is set for some key environmental, social and governance milestones.
All of this was against the backdrop of natural disasters that scientists say were made worse by the changing climate – from deadly heat waves to wildfires to flooding. The business risks were on full display as the costs tallied in the hundreds of billions of dollars. The catastrophes made environmental activists and the public skeptical that the ESG-related machinations of the business world could have real impact.
Expect other big retirement plans to join the net-zero club this year. There are expectations that Canada Pension Plan Investment Board, which manages $542-billion on behalf of Canadians, will make its position on the matter clear. In December, it said it is shifting its strategy by concentrating on helping high-carbon companies cut their emissions and seeking out new technology for doing so.
Companies could be exempted from disclosing their emissions for any of the three categories if they provide an explanation. Under a second option, only scope 1 would have to be disclosed. Despite the overall step forward on disclosure, there will be pushback from green groups, and even some sustainable finance experts, who demand the full menu of emissions be included.