EUROPEAN INSTITUTIONS DEVELOPMENTS
EP: CS3D Update

INTERNATIONAL DEVELOPMENTS
World’s biggest investment fund warns directors to tackle climate crisis or face sack (The Guardian)

EUROPEAN DEVELOPMENTS
Companies and investors calling for ambitious European sustainability reporting standards
An analysis of the EU governance framework for corporate reporting (The European Contact Group)
European discussion on the implementation of the CSRD

NATIONAL DEVELOPMENTS
France: The French High Council of Statutory Auditors could harden its position (Les Echos)
UK: Shell directors personally sued over ‘flawed’ climate strategy (Business & Human Rights Resource Centre)

EVENTS/WEBINARS
OECD Forum on due diligence and responsible business conduct

The EU Alert is available for download here.

Corporate Sustainability: Risk Managers and Internal Auditors must work closer with Boards of Directors

Boards of Directors need to work closer with Risk Managers and Internal Auditors to meet the sustainability challenges facing corporations. Otherwise, there is an increased risk of not meeting legal obligations and market expectations.   “Risk Managers and Internal Auditors are needed for their expertise when it comes to anticipating the effect of double materiality. The two professions can also help the Board in the dialogue with relevant stakeholders. Companies should first assess their level of maturity in terms of overall approach to sustainability”, highlighted Béatrice Richez-Baum, Director General, ecoDa.   EFRAG has just delivered the first set of draft standards for European sustainability reporting (ESRS) to the European Commission. The standards underline the urgency for European corporations to meet the sustainability challenge. At board level, more in-depth knowledge of sustainability issues in business operations becomes imperative.   “As a prerequisite, risk management and internal audit must support the Board and senior management so that strategy, risk management, policies, governance and culture fulfill the requirements and expectations. In turn, the Board and the C-Suite must give internal audit and risk management the means to do this”, added Pascale Vandenbussche, Secretary General, ECIIA.   While new developments regarding enhanced European legislation on corporate sustainability (including EFRAG’s ESRS standards) are emerging, ecoDa representing board members, FERMA representing risk managers and ECIIA for internal auditors describe in a joint paper, why cooperation between the three roles is needed.   “A corporate culture that embraces enterprise-wide risk management is a fundamental factor in determining how organisations approach and deal with sustainability. Managing sustainability requires a mature risk management function and processes. And, with our maturity matrix in the paper we guide organisations to gain a better sense of their sustainability journey”, Typhaine Beaupérin, FERMA CEO.   Embedding sustainability into business operations requires Boards of Directors, Risk Managers and Internal Auditors to cooperate. A clear understanding between the Risk Management and Internal Audit functions must be developed to support the Board, and deliver on sustainability objectives.

It Includes:
EUROPEAN INSTITUTIONS DEVELOPMENTS

CSRD: Consolidated text public
ESMA: Letter on ISSB’ Exposure Drafts
CJUE: Judgement on software in diesel vehicles

INTERNATIONAL DEVELOPMENTS
US: Business Roundtable concerned with the SEC’s disclosure proposal
UN combats greenwashing with new panel (Minerva Analytics)

NATIONAL DEVELOPMENTS
UK: Next steps to reform the UK’s audit and corporate governance framework
UK: Regulator to review impact of ESG ratings on firms (Board Agenda)
Netherlands: The rise of stakeholder committees (Lexology)

ecoDa News

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• ecoDa European Board Diploma: Learn more about this ecoDa brand-new board education programme. Registrations are open;
• 25th of July: ecoDa  call on DNF ISSB topics

The EU Alert is available for download here.

It includes:

Taxonomy: MEPs object to Commission’s plan to include gas and nuclear activities
Coreper: Vote on the provisional agreement on Women on boards
EBA: Guidelines on role and responsibilities of the AML/CFT compliance officer
US: SEC looks at stricter rules for index providers (Financial Times)
Basel Committee: Principles for effective management and supervision of climate-related financial risks
BlackRock doesn’t want to be ‘environmental police’ (Bloomberg)
UN compaign toughens standards for company net-zero plans (Reuters)
A record number of companies are committing to and setting science-based climate targets (STBi)
EU Business Biodiversity Platform: Consultation on biodiversity measurement standards
UK: Plans to curb corporate crime (Financial Times)

• 17th of June: Béatrice Richez-Baum speaking at ESAE event on conflit resolution and governance review in associations;
• 21st of June: ecoDa’s team will meet FESE to discuss the CSDD;
• 24th of June: ecoDa’s Task Force on EFRAG Consultation meeting.

The EU Alert is available for download here.

EUROPEAN INSTITUTIONS DEVELOPMENTS

Corporate Sustainability Due Diligence Directive: Update
European Green Bond Standard: new measures to reduce greenwashing
Ban on products made with forces labour: EP recommendations

INTERNATIONAL DEVELOPMENTS

More shareholders rejecting companies’ executive pay program

NATIONAL DEVELOPMENTS

France: BNP Paribas’ general assembly disturbed by NGOs (Les Echos)
France: Total takes further climate commitments as a result of investors’ pressures (Les Echos)

WEBINAR

EC: Capital Markets Union: investing for a stronger, prosperous and sustainable European Union

ecoDa News

• 23rd of May (11.00 to 12.00 CET): ecoDa and EY will organize a webinar on “How can a focus on governance can help reimagine corporate integrity?“;
• REMINDER: 13-14 July: GNDI Global Conference: Registrations are now open;
• The summary report of ecoDa / Mazars joint webinar on “The impacts of Taxonomy on bank loans and SMEs” is now available;
  

The EU Alert is available for download here.

Cari Associati,
vi segnaliamo il webinar “How can a focus on governance help reimagine corporate integrity?” organizzato da ecoDa insieme a EY e INSEAD Corporate Governance Centre in programma per il 23 maggio alle ore 11:00 – 12:00 CET.

Per registrarti CLICCA QUI.

It Includes:

EUROPEAN INSTITUTIONS DEVELOPMENTS

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Provisional agreement on the Digital Operational Resilience Act
Corporate taxation: Commission proposed tax incentive for equity
New rules on cybersecurity

INTERNATIONAL DEVELOPMENTS

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Climate change: Blackrock steps back (CNBC)
NACD: Comments to the SEC proposed rules on cybersecurity risk management, strategy, governance and incident disclosure

EUROPEAN DEVELOPMENTS

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ecoDa: Reactions to ATAD III

WEBINAR

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SABS Standards Board public meeting

ecoDa News

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• 16th of May: Béatrice Richez-Baum, ecoDa’s DG, speaking at the Legal Committee of the French Institute of Directors;
• 20th of May: Béatrice Richez-Baum, ecoDa’s DG, speaking at a conference organized by PUBLIKA, the internal think tank of the SKEMA Business School in partnership with the ONUDI;
• SAVE THE DATE: 23rd of May (11.00 to 12.00 CET): ecoDa and EY will organize a webinar on “How can a focus on governance can help reimagine corporate integrity?“;
• SAVE THE DATE: 14th of June (6.00 to 8.00pm CET in Brussels): ecoDa and Chapter Zero Brussels invite you to a discussion between policy makers and European board members to discuss the EU Green Deal; You can already express your interest to attend at policy@ecoda.eu;
• REMINDER- SAVE THE DATE: 13-14 July: GNDI Global Conference. To celebrate the 10th anniversary of the GNDI, which ecoDa is part of, the network will be host a 24-hour virtual event, where Abigail Levrau (Chair of ecoDa’s Corporate Governance Dialogue Advisory Committee), Michael Hilb (ecoDa Board Member) and Béatrice Richez-Baum (ecoDa’s DG) will intervene;
• ecoDa is delighted to welcome a new member institute, the Financial Experts Association e.V. (FEA), which represents German and international non-executive directors in supervisory and advisory boards.

The EU Alert is available for download here.