Global ESG insights - October 2024

Global

IAIS consultation on climate risk supervisory guidance

On October 28, the International Association of Insurance Supervisors (IAIS) consultation on climate risk supervisory guidance closed. The consultation aimed to enhance the global framework for insurance supervision by addressing climate-related financial risks. It includes new supporting material on supervisory reporting, public disclosure, and supervisory cooperation. The response to the consultation has not yet been published.

TNFD publishes draft guidance on nature transition planning

On October 27, the Taskforce on Nature-related Financial Disclosures (TNFD) published a discussion paper on nature transition plans. This paper provides draft guidance for corporates and financial institutions on developing and disclosing nature transition plans. The guidance excludes climate change and greenhouse gas emissions, focusing instead on other aspects of nature. The TNFD encourages feedback on this draft by February 1, 2025, to refine the final guidance.

Asia

Hong Kong: Sustainable Finance Action Agenda published

On October 21, the Hong Kong Monetary Authority (HKMA) published its Sustainable Finance Action Agenda, outlining eight goals across four areas to support the sustainable finance transition. These areas include achieving net zero in banking operations and financed emissions, investing in a sustainable future, developing Hong Kong as a sustainable finance hub, and making sustainability more inclusive. The HKMA will implement the agenda with further guidance and will review it based on market developments and feedback.

Hong Kong: Waste Disposal (Amendment) Bill 2024

On October 18, the Waste Disposal (Amendment) Bill 2024 was published. The bill aims to align with the Basel Convention’s amendments on the control of transboundary movements of electrical and electronic waste (EEW). This bill will expand the scope of import and export control to cover all EEW under the permit control system. The amendments are set to take effect on January 1, 2025.

Hong Kong: Code of Conduct for ESG Ratings and Data Products Providers 

On October 3, the Hong Kong Code of Conduct for ESG Ratings and Data Products Providers (the Code) was published. This voluntary Code aims to enable providers to showcase transparent practices and enhance information quality for investors. The Code outlines key principles such as good governance, quality assurance, conflict of interest management, transparency, confidentiality, and stakeholder engagement.

Europe

EU: 9 legislative proposals approved under corrigenda procedure

On October 22, the European Parliament approved the final texts of eight proposals for new laws under the corrigenda procedure. The proposals relating to ESG include:

• Regulation on the transparency and integrity of ESG rating activities
• Directive on Ship-source pollution
• Regulation on prohibiting products made with forced labor on the EU market
• Regulation establishing an EU certification framework for permanent carbon removals, carbon farming and carbon storage in products

For more information on the Regulation on prohibiting products made with forced labor on the EU market, see our flash update.

EU: Regulation on the implementation of the Single European Sky

On October 22, the European Parliament adopted the Regulation on the implementation of the Single European Sky. The Regulation aims to make the EU airspace greener by implementing binding air navigation targets and charges to deliver more efficient and greener flights and to encourage fuel-efficient routes, as well as aiming to encourage enhanced competition on air navigation services.

EU: Deforestation-free Products Regulation

On October 16, the European Council approved the proposal to delay the application of the Deforestation-free products Regulation. The European Parliament must also adopt the proposal before it becomes law. If adopted, the application date of the regulation will be postponed by one year, applying from:

• December 30, 2025, for large operators and traders
• June 30, 2026, for micro- and small enterprises

For more information see our flash update.

EU: Platform Workers Directive

On October 14, the European Council adopted the Platform Workers Directive. The Directive aims to ensure that people working through digital labor platforms are granted the correct legal employment status. Companies using algorithms in human resources management will also be required to make their systems more transparent, ensuring they are monitored by qualified staff and that workers have the right to contest automated decisions.

EU: CLP Regulation

On October 14, the European Parliament approved the Classification, Labelling and Packaging of Substances and Mixtures Regulation (CLP Regulation). The CLP Regulation aims to provide more clarity on labeling issues, such as readability and digital labeling. Specifically, the CLP Regulation introduces:

• better and faster processes for all actors to inform on hazards of chemicals placed in the EU market
• improved communication of chemical hazards through simpler and clarified labeling and advertising requirements
• specific rules for refillable chemical products, such as home care chemicals

EU: Ambient Air Quality Directive

On October 14, the European Council adopted the Ambient Air Quality Directive. The new rules will contribute to the EU's objective on zero pollution by 2050 and aims to help prevent premature deaths due to air pollution. EU citizens will be able to seek compensation for damage to their health in cases where EU air quality rules are not respected.

EU: Cyber Resilience Act

On October 10, the European Council adopted the Cyber Resilience Act. The Cyber Resilience Act lays down cybersecurity requirements for the design, development, production and making available on the market of products with digital elements. The Regulation will apply to products that are connected to another device or to a network, with certain exemptions.

EU: Revised Product Liability Directive

On October 10, the European Council adopted the Revised Product Liability Directive (PLD). The new PLD provides a framework for compensation to individuals harmed by unsafe tangible and intangible products. Specifically, the PLD:

• extends the definition of "product" to digital manufacturing files and software
• makes the right to compensation easier by ensuring that an injured person who claims compensation before a national court can request access to relevant evidence
• ensures that consumers are compensated for damages caused by a product manufactured outside of the EU and that the company importing the product, or the EU-based representative of the foreign manufacturer can be held liable for damages

For more information see our flash update.

Middle East

Oman: CBO introduces requirements on sustainable and green financial practices

On October 13, the Central Bank of Oman (CBO) issued instructions to enhance the banking sector’s resilience to climate-related risks. The guidelines emphasize integrating climate risk management into banks’ operations, including governance, strategy, risk assessment, and disclosure. Banks are encouraged to adopt broader ESG factors and participate in sustainable finance initiatives. The instructions apply to all banks in Oman, with implementation plans due by June 30, 2025. Provisions will take effect between immediate implementation and December 31, 2026.

UK

UK: Great British Energy Bill

On October 30, the Great British Energy Bill underwent its first reading in the House of Lords. The Bill seeks to establish Great British Energy as a publicly owned, operationally independent company. Its goals include increasing clean energy production, reducing greenhouse gas emissions, and improving energy efficiency.

UK: Worker Protection (Amendment of Equality Act 2010) Act 2023

On October 26, the Worker Protection (Amendment of Equality Act 2010) Act 2023 entered into force. The Act will require employers to proactively take reasonable steps to prevent the sexual harassment of employees during the course of their employment. Failure to comply with the duty will lead to a potential uplift of up to 25% in compensation awarded for tribunal claims.

For more information see our briefing.

UK: The Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024

On October 24, the draft Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024 were laid before parliament. The extended producer responsibility regime, under the Environment Act 2021, mandates packaging producers to cover the costs of waste management, aiming to reduce packaging use and promote eco-friendly options. The regime’s start was delayed to October 2025.

UK: IoD publishes voluntary Code of Conduct for UK company directors

On October 23, The Institute of Directors (IoD) published a voluntary Code of Conduct for UK company directors. This Code aims to help directors make better decisions and build public trust in their business activities. It is structured around six principles: leading by example, integrity, transparency, accountability, fairness, and responsible business. The Code is applicable to directors of all company sizes and sectors, encouraging boards to publicly commit to it. While voluntary, it provides a framework for ethical and sustainable business practices.

For more information see our briefing.

UK: Data (Use and Access) Bill

On October 23, the new Data (Use and Access) Bill underwent its first reading. The Data (Use and Access) Bill aims to regulate data access and use for public benefit, enhancing economic growth and public services. It includes provisions for customer and business data access, privacy, electronic communications, and health and social care information standards. The Bill also addresses the retention of biometric data, smart meter communication licenses, and the establishment of the Information Commission.

For more information see our flash update.

UK: Company Directors (Duties) Bill

On October 21, Company Directors (Duties) Bill was presented to Parliament. The Bill will amend the Companies Act 2006 to require company directors to balance their duty to promote the success of the company with duties in respect of the environment and the company’s employees. The next stage for this Bill is scheduled to take place on July 4, 2025.

UK: Report on Modern Slavery Act published

On October 16, the House of Lords Modern Slavery Act 2015 Committee published a report reviewing the Modern Slavery Act 2015. The report highlights that the UK has fallen behind other countries in combating modern slavery due to unimplemented reforms, restrictive immigration laws, and a long-vacant Independent Anti-Slavery Commissioner post.

UK: Consultation on decarbonization readiness

On October 15, the Department for Energy Security and Net Zero published its response to the 2023 consultation on carbon capture readiness, now renamed decarbonization readiness (DR). The response confirms that DR requirements will shift from the planning consent process to the Environmental Permitting regime for applications after February 28, 2026. Additionally, the 300 MW minimum capacity threshold for DR requirements will be removed to simplify regulations, eliminate market distortions, and support rapid decarbonization of electricity.

UK: Employment Rights Bill

On October 10, the Government published the Employment Rights Bill, setting out 28 employment law reforms. Some of the key provisions include:

• protection against unfair dismissal from day one
• making flexible work the norm where practical
• flexibility on both sides of zero-hours contracts
• greater protection from ‘fire and hire’
• stronger laws against harassment
• extended entitlement to statutory sick pay

Since published, the Government has published four consultations, seeking views on various aspects of the Bill. These include:

• Making Work Pay: collective redundancy and fire and rehire
• Making Work Pay: the application of zero hours contracts measures to agency workers
• Making Work Pay: creating a modern framework for industrial relations
• Making Work Pay: Strengthening Statutory Sick Pay

For more information on the Bill, see our briefing.

UK: CAA publishes consultation to further develop the UK AER

On October 1, the Civil Aviation Authority (CAA) published a consultation on the future direction of the UK Aviation Environmental Review (AER). The consultation seeks stakeholder input on the overall ambition and aims for the AER, the nature of environmental data reported, and how this data should be presented. Key areas of focus include climate change, noise, air quality, and additional environmental topics such as biodiversity. The consultation is open until December 10, 2024, and responses will inform the development of an AER roadmap to be published by summer 2025.

US

US: EPA Finalizes Cancellation of Pesticide DCPA

On October 22, the U.S. Environmental Protection Agency (EPA) finalized the cancellation of all products containing the pesticide dimethyl tetrachloroterephthalate (DCPA) under the Federal Insecticide, Fungicide, and Rodenticide Act. This decision was based on studies showing thyroid toxicity and potential irreversible harm to unborn babies whose pregnant mothers are exposed to DCPA from handling, entering or working in areas where DCPA has already been applied. The cancellation prohibits the distribution and sale of products containing DCPA, and also prohibits the use of existing stocks of products containing DCPA.

Co-authored by Nathan Handoll (ESG Researcher in Knowledge).

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