Climate | Article
Reforming ESG : a European and Global South perspective
17 January 2025
BY: Simone Borghesi, CONSTANTINI Valeria, D'AMATO Alessio, Ilaria Dibattista, KOUNDOURI Phoebe, LI Qinci, Matteo Mazzarano, STERNER Thomas, Mira Tiwari, Peter Vis, XEPAPADEAS Anastasios
Environment and development economics, 2025, OnlineFirst
The EU's non-financial reporting (NFR) regulations have significant impacts on Global South stakeholders, firms that must report, actors lower in the value chain, and organisations seeking investment from NFR-compliant firms or institutions. This paper sets forth six proposals to improve the global equity and sustainability implications of the EU's NFR from a Global South perspective. The proposals involve (1) developing regulation cooperatively with the Global South; (2) streamlining reporting to enable the regulations to have real effects and limit incorrect accounting; (3) digitalising reporting through accessible technologies for greater accountability and lower administrative burdens; (4) mandating scope 3 emissions accounting and incentivising related investment; (5) anchoring financial institutions' role in ethical investment and bridging Northern and Southern actors; and (6) strengthening citizen data and sustainability literacy to close the circle of incentives, implementation, and impact.
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