Yesil Buyume International

📈 KPMG's new report shows that ESG Due Diligence is increasingly crucial despite challenger. Here are key findings of the report👇 🧊 In the past 12 to 18 months, dealmakers have reported a rising importance of ESG due diligence, even amidst economic uncertainty and softer M&A activity. 🧊 Contrary to initial expectations, ESG factors continue to gain traction, driven by evolving regulations and stakeholder expectations. 🧊 Leading investors are integrating ESG into their investment theses to drive financial value. They leverage tools like comprehensive baselining, integrated 100-day action plans, and systemic scans for financing sources. 🧊 These strategies enhance investee performance through revenue growth, cost reduction, and investment de-risking, focusing on themes such as decarbonization, recycling, circularity, and supply chain management. 🧊 However, challenges remain: 👉 Scoping: Defining a meaningful and actionable scope for ESG due diligence. 👉 Data Quality: Ensuring high-quality ESG documentation from target companies. 👉 Quantification: Accurately quantifying potential findings. 🧊 Emerging solutions are addressing these challenges, emphasizing the shift from values to value. Despite these advancements, ESG due diligence budgets remain lower than those for financial, commercial, or legal due diligence, limiting the depth of analysis.

📢 Known as the 'Brussels Effect', which we can define as the European Union's power to set regulations, will be felt even more strongly in international trade with the publication of the 'Ecodesign for Sustainable Products Regulation' in the Official Journal of the EU in June 2024. Here are the new ecodesign requirements: 🧊 durability; 🧊 reliability; 🧊 reusability; 🧊 upgradability; 🧊 repairability; 🧊 the possibility of maintenance and refurbishment; 🧊 the presence of substances of concern; 🧊 energy use and energy efficiency; 🧊 water use and water efficiency; resource use and resource efficiency; 🧊 recycled content; 🧊 the possibility of remanufacturing; 🧊 recyclability; 🧊 the possibility of the recovery of materials; 🧊 environmental impacts, including carbon footprint and environmental footprint; 🧊 expected generation of waste.

🎯 Here are the key findings of the newly published "Carbon Prices and Inflation in a World of Shocks" report:👇 🧊 Future carbon prices and the extent of carbonflation are highly uncertain but could potentially challenge monetary stability. Simulated annual carbonflation ranges from 0.2 percentage points with moderate, linear price increases to 1.7 percentage points for a potential carbon price shock in 2027. 🧊 Six sectors are systemically significant for both shockflation and carbonflation: Electricity, Heating and Cooling; Coke and Petroleum Products; Oil and Gas; Real Estate Services; Food and Tobacco Products; and Land Transport. These sectors account for 77-78% of total carbonflation. Additionally, Agriculture and Warehousing are significant for shockflation but not included in our carbonflation simulation. 🧊 The key to preventing both shockflation and carbonflation lies in the energy, housing, food, and transportation sectors. Current macroeconomic stabilization policies, which rely on interest rate hikes and fiscal tightening, need to be rethought. A more targeted approach is necessary, focusing on preventing and containing price spikes in critical sectors. Systemically significant sectors must be monitored, stress-tested, and regulated. Public buffer stocks can help stabilize critical prices and serve as an industrial policy tool, ensuring market stability and encouraging investments. 🧊 Green industrial policy is essential, requiring massive investments to build renewable energy systems, decarbonize transportation, retrofit housing, and green the food system. Public investments should aim to enhance the resilience of these sectors, reducing the risk of shockflation and carbonflation. Outdated fiscal rules must be revised to allow necessary public investments for effective climate change mitigation. A new stabilization toolbox is needed to facilitate the green transformation and navigate a world of economic shocks. #ClimateChange #GreenEconomy #CarbonPricing #Sustainability #EconomicPolicy #IndustrialPolicy #RenewableEnergy #PublicInvestments #Macroeconomics #Carbonflation #Shockflation

🎯 The report prepared by We Mean Business Coalition examines the sustainability reports of companies that have proactively aligned with the #ESRS. Containing valuable information on the application of the double materiality principle, stakeholder analysis, and due diligence, the report serves as a guide for companies that will prepare CSRD-compliant reports for the first time next year. DoubleMateriality.org

🎯 The guide prepared by Mazars is highly useful for understanding the general outlines of the European Union Sustainability Reporting Standards

📢 The following statements in the Strategic Agenda 2024-2025 document published by the EU indicate a weakening of the will to implement the European Green Deal 👇 "On our path to climate neutrality by 2050, we will be pragmatic and harness the potential of the green and digital transitions to create the markets, industries and high-quality jobs of the future. We will provide a stable and predictable framework and create a more supportive environment for scaling up Europe’s manufacturing capacity for net-zero technologies and products. We will invest in ample cross-border infrastructure for energy, water, transport and communications."

🎯 The report published by BSI contains concrete examples for the implementation of the ISO Net-Zero Guidelines. Andrew Griffiths, Policy & Corporate Development Director, eexplains the importance of the guide with the following words: “although Planet Mark started this work before formally adopting the Guidelines, adopting them provides added value by lending credibility through the formal international standards system.”

📢 Here is an example of how to reflect the financial impacts of sustainability and climate risks on a company in accordance with IFRS S1 and S2 from EY's newly published guidance.

🎯 The document published by Deloitte addresses the relationship between the proper functioning of companies' internal control mechanisms and the improvement of their ESG performance. Internal control mechanisms are critical, particularly for the proactive identification of sustainability and climate-related risks and for providing timely responses to these risks.

🎯The integrated report prepared by EDP includes the financial impacts of sustainability and climate risks that are required to be reported according to IFRS S1 & S2 and ESRS. Since the financial impacts of the risks cannot be fully determined, they are preferred to be presented within a range. Source: https://lnkd.in/dwSuix26