I am passing this along because currently there are a lot of US and California discussions about climate regulation and ESG, aspects of both of which also are or can be discussed under the “sustainability” umbrella.
Generally I do not write about laws, regulations, rules or standards that are only proposed as I am much more interested in how enacted developments are to be applied, what they say and mean, and helping people in that regard.
While there is uncertainty in the US, and in California, my view is that ESG and climate regulation or aspects thereof, and sustainability, are in fact already here and will continue to develop in the US and California, if for no other reason than that they are already more advanced and are at least in part in operation internationally. “Sustainability” definitely includes climate. “Sustainability” also includes some aspects of social. Whereas in the current literature it might be a bit of a stretch to include governance under the “sustainability” umbrella, given the nature of what governance involves, I do not see how governance could be excluded.
A side comment: I actually do not like the term “sustainability,” as at least to me it implies the negative or a minimalist or a just-getting-by approach or view, and it also fails to describe the specific issue or problem that is at hand. Instead, I prefer a risk management, striving or thriving, growth and success-oriented approach or view. The term climate change” also fails to describe the specific issue or problem that is at hand, but the term “climate change” also probably is here to stay.
For example, regarding sustainability, the following is a link to the news item about the first meeting (July 20-21, 2022) of the International Sustainability Standards Board (ISSB), which is up and operational as part of IFRS – see https://www.ifrs.org/news-and-events/news/2022/07/issb-to-hold-inaugural-meeting-in-frankfurt-20-21-july/
For those of you who are interested, you can either click on the above link, or if you click on the above link you will in part find the following discussion about the developments of the sustainability standards (and also note the references to the already existing Task Force on Climate-Related Financial Disclosures and to the work and standards that have been developed by the Sustainability Accounting Standards Board):
“The proposals―exposure drafts—build upon the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and incorporate industry-based disclosure requirements derived from SASB Standards.
When the ISSB issues the final requirements, they will form a comprehensive global baseline of sustainability disclosures designed to meet the information needs of investors in assessing enterprise value. The ISSB is working closely with other international organisations and jurisdictions to support the inclusion of the global baseline into jurisdictional requirements.
The ISSB is seeking feedback on the proposals over a 120-day consultation period closing on 29 July 2022. It will review feedback on the proposals in the second half of 2022 and aims to issue the new Standards by the end of the year, subject to the feedback.
The proposals have been developed in response to requests from G20 leaders, the International Organization of Securities Commissions (IOSCO) and others for enhanced information from companies on sustainability-related risks and opportunities. The proposals set out requirements for the disclosure of material information about a company’s significant sustainability-related risks and opportunities that is necessary for investors to assess a company’s enterprise value.”
Thanks for reading. Please pass this along to other people who would be interested.
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Best to you,
David Tate, Esq. (and inactive CPA)
- Business litigation and disputes – business, breach of contract/commercial, co-owners, shareholders, investors, founders, workplace and employment, environmental, D&O, governance, boards and committees.
- Trust, estate and probate court litigation and disputes – trust, estate, probate, elder and dependent abuse, conservatorship, POA, real property, mental health and care, mental capacity, undue influence, conflicts of interest, and contentious administrations.
- Governance, boards, audit and governance committees, investigations, auditing, ESG, etc.
- Mediator and facilitating dispute resolution:
- Trust, estate, probate, conservatorship, elder and dependent abuse, etc.
- Business, breach of contract/commercial, owner, shareholder, investor, trade secret, etc.
- D&O, board, audit and governance committee, accountant and CPA related.
- Other: workplace and employment, environmental.
Remember, every case and situation is different. It is important to obtain and evaluate all of the evidence that is available, and to apply that evidence to the applicable standards and laws. You do need to consult with an attorney and other professionals about your particular situation. This post is not a solicitation for legal or other services inside of or outside of California, and, of course, this post only is a summary of information that changes from time to time, and does not apply to any particular situation or to your specific situation. So . . . you cannot rely on this post for your situation or as legal or other professional advice or representation.
Also note – sometimes I include links to or comments about materials from other organizations or people – if I do so, it is because I believe that the materials are worthwhile reading or viewing; however, that doesn’t mean that I don’t or might not have a different view about some or even all of the subject matter or materials, or that I necessarily agree with, or agree with everything about or relating to, that organization or person, or those materials or the subject matter.
Thank you for reading this post. I ask that you also pass it along to other people who would be interested as it is through collaboration that great things and success occur more quickly. And please also subscribe to this blog and my other blog (see below), and connect with me on LinkedIn and Twitter.
My two blogs are:
http://tateattorney.com – business, D&O, audit committee, governance, compliance, etc. – previously at http://auditcommitteeupdate.com
Trust, estate, conservatorship, elder and elder abuse, etc. litigation and contentious administrations http://californiaestatetrust.com
David Tate, Esq. (and inactive California CPA) – practicing only as an attorney in California.