B20 Asks G20 to Enact Regulatory Mandate for ESG Framework in 5 Years

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B20 asks for Concurrence on standard definitions/ taxonomies and ESG disclosure, reporting frameworks, and rating standards which are interoperable amongst G20 nations by 2024 Adoption of a common ESG framework by all of G20 nations through country-specific mandates in the next 5 years.

New Delhi (ABC Live): The three days B20 India 2023 meet organized under aegis of India’s Presidency of G20 in New Delhi from 25/08/2023 to 27/08/2023.

The theme for the B20 India 2023 was Responsible, Accelerated, Innovative, Sustainable, Equitable (R.A.I.S.E) Businesses.

In view of the growing significance of industry to adhere to Environment, Social and Governance (ESG) standards, supporting the adoption of ESG in business operations was one of the deliberated subjects of B20 meet.

The B20 released following polices papers after meet;

Inclusive GVCs for Resilient Global Trade and Investment

Future of Work, Skilling and Mobility

Energy, Climate Change & Resource Efficiency

Digital Transformation

Financing for Global Economic Recovery

Tech, Innovation and R&D

Financial Inclusion for Economic Empowerment

ESG in Business

African Economic Integration: An Agenda for Global Business

Environment, Social and Governance (ESG) standards in Business B20 meet recommends following recommendations;

1. To adopt universally adaptable ESG standards and disclosures those are comprehensive, transparent, inclusive, and equitable. 

2. E S G implementation pathways to accelerate adoption of responsible and sustainable processes.

3. Augmenting ESG governance

4. Drive business resilience and disaster management through a robust framework

After B20 meet a Communiqué was issued inscribing the Policy Recommendations to the G20 for consideration during G20 meet, wherein in response to 1st recommendation following action are requested to taken during G20 Summit:

Concurrence on standard definitions/ taxonomies and ESG disclosure, reporting frameworks, and rating standards which are interoperable amongst G20 nations by 2024 Adoption of a common ESG framework by all of G20 nations through country-specific mandates in the next 5 years.

Action warranted for 2nd recommendation;

G20 nations will introduce a regulatory mandate for the adoption of an appropriate framework for disclosures and rating within the next five years.

The public and private sectors will develop criteria to incentivise adoption of sustainable elements in their procurement processes within 2 years of adoption of the above guidelines.

G20 to develop a tech-enabled platform for ESG capacity building, sharing of knowledge and best practices, and research in areas of clean, green, and sustainable technologies by 2025.

Action warranted for 3rd recommendation

G20 nations should within 2 years bring a desirable Governance framework for companies to monitor ESG compliances and integration in their businesses or adopt the G20/OECD Principles of Corporate Governance when it is finally endorsed for implementation B20 should establish a platform with industry experts and policymakers to serve as a common knowledge capacity- building platforms on sharing ESG good practices, success stories on ESG integrations in global value chains, digital interventions, and ethics and integrity by 2025. The proposed platform can be hosted on the G20 website.

Action warranted for 4th recommendation

Business Resilience Planning, based on risk modelling, for disclosure on risk and remedial measures and approval of all projects involving significant infrastructure or resources to be developed and implemented by 2025. Establish a common Centre of Excellence for knowledge sharing on resilience, adaptation and disaster management, including tech- enabled tools for risk detection and adaptation measures, by 2025

To read complete Communiqué issued by B20 click here 

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