ESG legislation places a strong emphasis on regulatory and disclosure requirements. Indeed, the obligation to report and disclose ESG data is seen as a strong measure to encourage businesses to operate in a sustainable manner.
Investment firms and certain credit institutions are already under the obligation to disclose information on how they have embedded ESG considerations into the financial products they offer or advise on. Companies with certain minimum turnovers and employees are similarly bound by ESG reporting obligations and audit requirements. They must also implement mandatory ESG standards in certain instances.