As part of our ongoing climate research efforts, the EDHEC Infra & Private Assets Research Institute tracks regulatory movements related to the ESG space. We have compiled a few highlights from this month for you below.

Ramping up global sustainability efforts:

• In Europe, President Macron’s plan aims to cut France’s emissions by 55% by 2030.
• Meanwhile, the Task Force on Nature-Related Financial Disclosures (TNFD) provided voluntary recommendations for managing nature-related risks and financial disclosures.

The financial sector continues to increase its commitment to sustainability:

• The U.S. Department of the Treasury unveiled the “Principles for Net-Zero Financing & Investment,” encouraging private-sector investment in green initiatives.
• The Hong Kong Monetary Authority (HKMA) issued guiding principles for banks to align with the Paris Agreement in their journey toward a net-zero transition.

Accountability has also been a focus for new legislation:

• California’s Climate Corporate Data Accountability Act, upon enactment, will mandate rigorous carbon emissions reporting for large businesses, raising corporate disclosure standards.
• Concurrently, the European Parliament and Council tackled “greenwashing” through consumer advertising regulations, advocating precise environmental claims.
• The SEC also introduced rules requiring ESG-focused funds to align investments with sustainability factors.
• And lastly, The Carbon Disclosure Project (CDP) underscored the need for more robust corporate disclosures on nature-related risks.

EDHEC Infra & Private Assets will continue to support infrastructure investors with providing robust and granular climate data at an asset-level, especially considering this increased regulatory pressure to report climate-related financial disclosures accurately. To learn more about Climate Data features on infraMetrics®, please visit our website or be sure to attend our dedicated EDHEC Infra Days events.