The lack of comparability between the three standards is expected to weaken the ability of markets to direct capital to green investments. Getty
The lack of comparability between the three standards is expected to weaken the ability of markets to direct capital to green investments. Getty
The lack of comparability between the three standards is expected to weaken the ability of markets to direct capital to green investments. Getty
The lack of comparability between the three standards is expected to weaken the ability of markets to direct capital to green investments. Getty

Road to Net Zero

Overlapping rules to govern ESG credentials could lead to added costs for companies

Three draft sets of disclosure rules by the EU, the SEC in the US and the G20-backed ISSB are out for public consultation

Reuters

June 18, 2022

  • English
  • Arabic

Three competing plans to curb companies from exaggerating their green credentials could lead to more frustration and costs for businesses, especially starting next year.

More than $3 trillion has flowed into investments specifically touting their environmental, social and governance (ESG) credentials reported under scores of voluntary disclosures, stoking regulatory concerns about greenwashing.

While investors and companies want a single set of mandatory disclosures to aid comparison between companies and keep down reporting costs, three draft sets of disclosure rules are currently out for public consultation from the EU, the US Securities and Exchange Commission and a new G20-backed International Sustainability Standards Board (ISSB).

Companies could apply them in annual reports for 2023 or shortly thereafter, but the speed of rule-making, differences between the standards and political aims to break new ground are raising concerns among those tasked with using them.

Engineers carry solar panels on to the roof of a property in Barcelona in September 2022. Spain and other Mediterranean countries have generated record amounts of power from wind and solar farms. Bloomberg
Engineers carry solar panels on to the roof of a property in Barcelona in September 2022. Spain and other Mediterranean countries have generated record amounts of power from wind and solar farms. Bloomberg
Smoke rises from brick factory stacks in Nahrawan, Baghdad. Tackling emissions from heavy industry is crucial to tackling global warming. Reuters
Smoke rises from brick factory stacks in Nahrawan, Baghdad. Tackling emissions from heavy industry is crucial to tackling global warming. Reuters
A boy stands near a flock of sheep as a sandstorm approaches in the Syrian countryside of Tabqa. Syria is among the countries most vulnerable and poorly prepared for climate change, which is expected to worsen. AFP
A boy stands near a flock of sheep as a sandstorm approaches in the Syrian countryside of Tabqa. Syria is among the countries most vulnerable and poorly prepared for climate change, which is expected to worsen. AFP
Mountains of smouldering rubbish at the Bhalswa landfill in New Delhi, India. Reuters
Mountains of smouldering rubbish at the Bhalswa landfill in New Delhi, India. Reuters
Greenpeace activists take part in a climate change protest in front of the Brandenburg Gate in Berlin in May. AP
Greenpeace activists take part in a climate change protest in front of the Brandenburg Gate in Berlin in May. AP
A man carries water bottles across the heavily polluted Negro River in Manaus, Brazil. About 35 tonnes of rubbish are removed daily from the river. AP
A man carries water bottles across the heavily polluted Negro River in Manaus, Brazil. About 35 tonnes of rubbish are removed daily from the river. AP
A helicopter drops water on a brush fire in California. Bloomberg
A helicopter drops water on a brush fire in California. Bloomberg
UN climate chief Patricia Espinosa speaks on the opening day of the Bonn climate change conference in Germany. Getty
UN climate chief Patricia Espinosa speaks on the opening day of the Bonn climate change conference in Germany. Getty
Activists take part in a demonstration to raise awareness of global warming, during an event to mark World Environment Day in Kolkata. AFP
Activists take part in a demonstration to raise awareness of global warming, during an event to mark World Environment Day in Kolkata. AFP
A helicopter drops water on a bushfire near a residential district in Athens. The fire forced residents to flee. AFP
A helicopter drops water on a bushfire near a residential district in Athens. The fire forced residents to flee. AFP
A gauge measures water levels in the Rio Nambe river, in New Mexico. Ninety per cent of the state is experiencing extreme drought. Getty
A gauge measures water levels in the Rio Nambe river, in New Mexico. Ninety per cent of the state is experiencing extreme drought. Getty
Afghan refugees search for recyclable material from heaps of rubbish in Karachi, Pakistan. AP
Afghan refugees search for recyclable material from heaps of rubbish in Karachi, Pakistan. AP
A climate activist ties herself to the net during the semi-final tennis match between Croatia's Marin Cilic and Norway's Casper Ruud at the French Open in Roland Garros in Paris. AP
A climate activist ties herself to the net during the semi-final tennis match between Croatia's Marin Cilic and Norway's Casper Ruud at the French Open in Roland Garros in Paris. AP
A dance group performs at a climate summit in Stockholm, Sweden. Getty
A dance group performs at a climate summit in Stockholm, Sweden. Getty
US climate envoy John Kerry talks to a delegate at the Stockholm 50 climate summit. Getty
US climate envoy John Kerry talks to a delegate at the Stockholm 50 climate summit. Getty
A boat is stranded during low tide at the Chebayesh marsh in Dhi Qar province, Iraq. Reuters
A boat is stranded during low tide at the Chebayesh marsh in Dhi Qar province, Iraq. Reuters
A woman crosses a polluted river in Dhaka, Bangladesh. EPA
A woman crosses a polluted river in Dhaka, Bangladesh. EPA
A man walks past an abandoned boat in the bed of a drought-affected reservoir on the outskirts of Sana'a, Yemen. EPA
A man walks past an abandoned boat in the bed of a drought-affected reservoir on the outskirts of Sana'a, Yemen. EPA

The “We Mean Business” coalition of 7,000 global companies is calling on the regulators to converge their definitions, terminology and concepts before finalising the rules later this year, and not in the months and years after that.

“It is uncertainty over what will be the outcome of it, and we can see that, especially if companies are dual-listed in the United States and EU, they will have an issue,” said Jane Thostrup Jagd, deputy director for net zero finance at We Mean Business.

“We will end up in a situation which is potentially even worse than what we have financially,” she said, referring to failed attempts at deeper convergence between accounting rules in the US and those from a sister body of the ISSB.

As it stands, the EU rules are the most comprehensive, covering the full range of ESG risks to a company, as well as its impact on both the environment and society.

The ISSB aims to be a global “baseline”, focusing on risks to companies from climate issues, with some consideration of wider factors, while the SEC rules also look at climate risks to companies.

The lack of comparability between the three standards would weaken the ability of markets to direct capital to green investments, said Daniel Klier, chief executive of data company ESG Book, whose clients manage $120tn.

“If you believe in the capability of a financial market to take information as a signal to allocate capital effectively, getting inconsistent signals just weakens the system,” he said.

“The second problem is that you frustrate companies because if you are an international firm, you need to do slightly different disclosures in different jurisdictions, which goes against the entire notion of easing the reporting burden to allow more information into the public domain.”

Mark Spiers, partner at regulatory consultants Bovill, said the different speeds at which the three standards were being written creates challenges for international companies.

“There are so many jurisdictional specific regimes and trying to satisfy all of them will be a Herculean task,” Mr Spiers said.

“It means firms operating [in] many jurisdictions have to continually adjust their systems. And there is a big question as to whether they will start to converge to a common set of standards.”

The ISSB and EU say their officials and those from the SEC are talking regularly.

“The key point here is that we will not get perfect harmonisations,” Ashley Alder, chair of Iosco, the global forum for securities regulators such as the SEC and a driving force behind the ISSB, told a conference this month.

“Nevertheless, we should not have an outcome where you have three competing major standards. They need to be sufficiently interoperable,” Mr Alder said, adding that co-ordination should mean investors having meaningful comparisons between companies.

There are so many jurisdictional specific regimes and trying to satisfy all of them will be a Herculean task
Mark Spiers,
partner at regulatory consultants Bovill

ISSB chair Emmanuel Faber said the board had set up a working group to aid dialogue with China, the EU, Japan, Britain and the US on disclosures.

“Continued engagement by jurisdictions and market participants across the world will be critical,” Mr Faber said.

Saskia Slomp, chief executive of Efrag, the body drafting EU disclosures, said everyone was working towards a common goal.

“There is a willingness to co-operate and move all together ahead, but we have to realise that there are different speeds and different topics,” Ms Slomp told a conference last month.

“The ISSB has now published general principles and a climate change one. We have to do the whole scope, the environment, social, and governance. It is a much wider thing.”

The SEC has left the door open to recognising international disclosure standards, but the EU has only said it will review compatibility international norms after three years.

“These EU standards will build on and will be compatible with global standards,” EU financial services chief Mairead McGuinness said last month.

Marie-Laure Delarue, EY's global vice chair of assurance, said three standards were still an improvement on the scores of private sector sustainability frameworks unveiled in the past.

“I do believe that we have less confusion now than before, because before it was only the private sector, and it was voluntary,” she said.

Whiile you're here
While you're here
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EQureos%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EUAE%0D%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%20%3C%2Fstrong%3E2021%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E33%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3ESoftware%20and%20technology%0D%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3E%243%20million%0D%3Cbr%3E%3C%2Fp%3E%0A
FFP EXPLAINED

What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.

What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.

How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Towering concerns
Traces%20of%20Enayat
%3Cp%3E%3Cstrong%3EAuthor%3A%3C%2Fstrong%3E%20Iman%20Mersal%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20And%20Other%20Stories%3Cbr%3E%3Cstrong%3EPages%3A%3C%2Fstrong%3E%20240%3C%2Fp%3E%0A
School uniforms report
Hotel Data Cloud profile

Date started: June 2016
Founders: Gregor Amon and Kevin Czok
Based: Dubai
Sector: Travel Tech
Size: 10 employees
Funding: $350,000 (Dh1.3 million)
Investors: five angel investors (undisclosed except for Amar Shubar)

Cinco in numbers

Dh3.7 million

The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown

46

The number, in kilograms, that Swarovski’s wedding gown weighed.

1,000

The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]

50

How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday

3,000

The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.

1.1 million

The number of followers that Michael Cinco’s Instagram account has garnered.

CHELSEA SQUAD

Arrizabalaga, Bettinelli, Rudiger, Christensen, Silva, Chalobah, Sarr, Azpilicueta, James, Kenedy, Alonso, Jorginho, Kante, Kovacic, Saul, Barkley, Ziyech, Pulisic, Mount, Hudson-Odoi, Werner, Havertz, Lukaku. 

Groom and Two Brides

Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

Liz%20Truss
%3Cp%3EMinisterial%20experience%3A%20Current%20Foreign%20Secretary.%0D%3Cbr%3E%0DWhat%20did%20she%20do%20before%20politics%3F%20Worked%20as%20an%20economist%20for%20Shell%20and%20Cable%20and%20Wireless%20and%20was%20then%20a%20deputy%20director%20for%20right-of-centre%20think%20tank%20Reform.%0D%3Cbr%3E%0DWhat%20does%20she%20say%20on%20tax%3F%20She%20has%20pledged%20to%20%22start%20cutting%20taxes%20from%20day%20one%22%2C%20reversing%20April's%20rise%20in%20National%20Insurance%20and%20promising%20to%20keep%20%22corporation%20tax%20competitive%22.%3C%2Fp%3E%0A
Basquiat in Abu Dhabi

One of Basquiat’s paintings, the vibrant Cabra (1981–82), now hangs in Louvre Abu Dhabi temporarily, on loan from the Guggenheim Abu Dhabi. 

The latter museum is not open physically, but has assembled a collection and puts together a series of events called Talking Art, such as this discussion, moderated by writer Chaedria LaBouvier. 

It's something of a Basquiat season in Abu Dhabi at the moment. Last week, The Radiant Child, a documentary on Basquiat was shown at Manarat Al Saadiyat, and tonight (April 18) the Guggenheim Abu Dhabi is throwing the re-creation of a party tonight, of the legendary Canal Zone party thrown in 1979, which epitomised the collaborative scene of the time. It was at Canal Zone that Basquiat met prominent members of the art world and moved from unknown graffiti artist into someone in the spotlight.  

“We’ve invited local resident arists, we’ll have spray cans at the ready,” says curator Maisa Al Qassemi of the Guggenheim Abu Dhabi. 

Guggenheim Abu Dhabi's Canal Zone Remix is at Manarat Al Saadiyat, Thursday April 18, from 8pm. Free entry to all. Basquiat's Cabra is on view at Louvre Abu Dhabi until October

Silent Hill f

Publisher: Konami

Platforms: PlayStation 5, Xbox Series X/S, PC

Rating: 4.5/5

The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

List of alleged parties
  • May 15 2020: Boris Johnson is said to have attended a Downing Street pizza party
  • 27 Nov 2020: PM gives speech at leaving do for his staff
  • Dec 10 2020: Staff party held by then-education secretary Gavin Williamson 
  • Dec 13 2020: Mr Johnson and his then-fiancee Carrie Symonds throw a flat party
  • Dec 14 2020: Shaun Bailey holds staff party at Conservative Party headquarters 
  • Dec 15 2020: PM takes part in a staff quiz
  • Dec 18 2020: Downing Street Christmas party 
Saudi National Day
Habtoor interview
BRAZIL SQUAD

Alisson (Liverpool), Daniel Fuzato (Roma), Ederson (Man City); Alex Sandro (Juventus), Danilo (Juventus), Eder Militao (Real Madrid), Emerson (Real Betis), Felipe (Atletico Madrid), Marquinhos (PSG), Renan Lodi (Atletico Madrid), Thiago Silva (PSG); Arthur (Barcelona), Casemiro (Real Madrid), Douglas Luiz (Aston Villa), Fabinho (Liverpool), Lucas Paqueta (AC Milan), Philippe Coutinho (Bayern Munich); David Neres (Ajax), Gabriel Jesus (Man City), Richarlison (Everton), Roberto Firmino (Liverpool), Rodrygo (Real Madrid), Willian (Chelsea).

Women%E2%80%99s%20Asia%20Cup
%3Cp%3E%3Cstrong%3EUAE%20fixtures%3C%2Fstrong%3E%3Cbr%3ESun%20Oct%202%2C%20v%20Sri%20Lanka%3Cbr%3ETue%20Oct%204%2C%20v%20India%3Cbr%3EWed%20Oct%205%2C%20v%20Malaysia%3Cbr%3EFri%20Oct%207%2C%20v%20Thailand%3Cbr%3ESun%20Oct%209%2C%20v%20Pakistan%3Cbr%3ETue%20Oct%2011%2C%20v%20Bangladesh%3Cbr%3E%3Cbr%3E%3Cstrong%3EUAE%20squad%3C%2Fstrong%3E%3Cbr%3EChaya%20Mughal%20(captain)%2C%20Esha%20Oza%2C%20Kavisha%20Kumari%2C%20Khushi%20Sharma%2C%20Theertha%20Satish%2C%20Lavanya%20Keny%2C%20Priyanjali%20Jain%2C%20Suraksha%20Kotte%2C%20Natasha%20Cherriath%2C%20Indhuja%20Nandakumar%2C%20Rishitha%20Rajith%2C%20Vaishnave%20Mahesh%2C%20Siya%20Gokhale%2C%20Samaira%20Dharnidharka%2C%20Mahika%20Gaur%3C%2Fp%3E%0A
While you're here
Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
If you go...

Etihad flies daily from Abu Dhabi to Zurich, with fares starting from Dh2,807 return. Frequent high speed trains between Zurich and Vienna make stops at St. Anton.

HIJRA

Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy

Director: Shahad Ameen

Rating: 3/5

Ain Issa camp:
  • Established in 2016
  • Houses 13,309 people, 2,092 families, 62 per cent children
  • Of the adult population, 49 per cent men, 51 per cent women (not including foreigners annexe)
  • Most from Deir Ezzor and Raqqa
  • 950 foreigners linked to ISIS and their families
  • NGO Blumont runs camp management for the UN
  • One of the nine official (UN recognised) camps in the region
Tips to keep your car cool
  • Place a sun reflector in your windshield when not driving
  • Park in shaded or covered areas
  • Add tint to windows
  • Wrap your car to change the exterior colour
  • Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
  • Avoid leather interiors as these absorb more heat
SPEC%20SHEET%3A%20SAMSUNG%20GALAXY%20S23%20ULTRA
%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%206.8%22%20edge%20quad-HD%2B%20dynamic%20Amoled%202X%2C%20Infinity-O%2C%203088%20x%201440%2C%20500ppi%2C%20HDR10%2B%2C%20120Hz%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%204nm%20Qualcomm%20Snapdragon%208%20Gen%202%2C%2064-bit%20octa-core%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%208%2F12GB%20RAM%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStorage%3A%3C%2Fstrong%3E%20128%2F256%2F512GB%2F1TB%20(only%20128GB%20has%20an%208GB%20RAM%20option)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPlatform%3A%3C%2Fstrong%3E%20Android%2013%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMain%20camera%3A%3C%2Fstrong%3E%20quad%2012MP%20ultra-wide%20f%2F2.2%20%2B%20200MP%20wide%20f%2F1.7%20%2B%2010MP%20telephoto%20f%2F4.9%20%2B%2010MP%20telephoto%202.4%3B%203x%2F10x%20optical%20zoom%2C%20Space%20Zoom%20up%20to%20100x%3B%20auto%20HDR%2C%20expert%20RAW%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EVideo%3A%3C%2Fstrong%3E%208K%4024%2F30fps%2C%204K%4060fps%2C%20full-HD%4060fps%2C%20HD%4030fps%2C%20full-HD%20super%20slo-mo%40960fps%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFront%20camera%3A%3C%2Fstrong%3E%2012MP%20f%2F2.2%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%205000mAh%2C%20fast%20wireless%20charging%202.0%2C%20Wireless%20PowerShare%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%205G%2C%20Wi-Fi%2C%20Bluetooth%205.2%2C%20NFC%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20USB-C%3B%20built-in%20Galaxy%20S%20Pen%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESIM%3A%3C%2Fstrong%3E%20single%20nano%20%2F%20nano%20%2B%20eSIM%20%2F%20nano%20%2B%20nano%20%2B%20eSIM%20%2F%20nano%20%2B%20nano%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColours%3A%3C%2Fstrong%3E%20cream%2C%20green%2C%20lavender%2C%20phantom%20black%3B%20online%20exclusives%3A%20graphite%2C%20lime%2C%20red%2C%20sky%20blue%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20Dh4%2C949%20for%20256GB%2C%20Dh5%2C449%20for%20512GB%2C%20Dh6%2C449%20for%201TB%3B%20128GB%20unavailable%20in%20the%20UAE%3C%2Fp%3E%0A
Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E3.0%20twin-turbo%20inline%20six-cylinder%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3Eeight-speed%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E503hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E600Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh400%2C000%20(estimate)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
Updated: May 30, 2023, 8:41 AM
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