A new report from the International Bar Association (IBA)’s Capital Markets Forum and Securities Law Committee provides valuable insights into the growing importance of environmental, social and governance (ESG) considerations in capital market transactions across the world. With input from more than 30 jurisdictions, the IBA Capital Markets Forum and Securities Law Committee ESG survey 2022 (ESG Survey 2022) provides an overview of how different countries regulate ESG disclosures and whether, and to what extent, these disclosures are now mandatory due to prevailing regulatory trends and institutional investors’ demands.
David Flechner, Vice Chair of the IBA Mergers and Acquisitions Subcommittee of the IBA Securities Law Committee, and Partner at Allen & Overy, New York, United States, remarked: ‘This survey is a fantastic example of how the convening power of the IBA can facilitate the production of a cutting-edge analysis across the globe, covering a broad and diversified sample set of leading practitioners ready to share their expertise and insights about the present and future developments in ESG disclosure regulation in global financial markets. It was a delight to work alongside such esteemed peers on the preparation and execution of this valuable initiative and resource.’
ESG disclosures were mandatorily required to be made in the vast majority of jurisdictions reviewed in the ESG Survey 2022, indicating a growing global trend towards greater transparency in ESG reporting. Listed companies and large corporations were reported in the survey as the main addressees of ESG reporting duties, highlighting the importance of this activity for companies which have a significant impact on the environment and society. Another noteworthy finding of the survey was the lack of globally accepted standards for ESG reporting, something which could create challenges for companies operating in multiple jurisdictions and for investors seeking to compare ESG performance across companies.
Rabel Z Akhund, Membership Officer of the IBA Capital Markets Forum, and Founder of Akhund Forbes, Pakistan and Bangladesh, commented: ‘The findings of this survey highlight the growing importance of ESG disclosures in capital market transactions and the need for greater transparency and consistency in ESG reporting. It was a pleasure to work with our colleagues from the IBA Securities Law Committee and the Capital Markets Forum in producing this survey which showcases the depth and breadth of the IBA’s global reach and expertise.’
