illuminem summarizes for you the essential news of the day. Read the full piece on SustainabilityMag or enjoy below:

🗞️ Driving the news: European Union lawmakers have postponed the adoption of the Corporate Sustainability Reporting Directive (CSRD) standards, pushing back the deadline by two years to facilitate companies' adaptation
• Simultaneously, China has introduced new sustainability reporting guidelines for companies listed on its major stock exchanges, mandating comprehensive ESG disclosures, including Scope 3 emissions, by April 2026

🔭 The context: The EU's delay is seen as a setback for transparency advocates, extending timelines for sector-specific European Sustainability Reporting Standards (ESRS) and the inclusion of large non-EU companies operating within the EU
• Conversely, China's move to enforce ESG reporting reflects a significant step towards integrating sustainability into corporate governance, with an emphasis on 'double materiality'—the financial impact of ESG factors on companies and their impact on society and the environment

🌍 Why it matters for the planet: China's new ESG reporting requirements, especially the inclusion of Scope 3 emissions, represent a critical advancement in acknowledging the broader environmental impacts of corporate activities
• This initiative underscores the growing global momentum towards sustainability and the imperative for businesses to disclose their environmental footprints comprehensively

⏭️ What's next: The contrasting approaches between the EU's delay and China's accelerated ESG reporting standards signify diverging paths in global sustainability efforts
• China's guidelines could position its companies as leaders in ESG practices, potentially influencing international standards and encouraging other countries to follow suit
• The global landscape of corporate sustainability reporting is poised for transformation, with significant implications for corporate accountability and environmental stewardship

💬 One quote: "The new reporting standards in China could have a significant impact globally. If already competitive Chinese companies are also seen to be ESG champions, their fortunes could be set to rise even further," highlighting the strategic importance of ESG integration in enhancing corporate competitiveness on the global stage

📈 One stat: According to KPMG’s 2023 Global CEO Outlook, 69% of global CEOs have fully embedded ESG into their business strategies as a value creation mechanism, yet 68% acknowledge that their current ESG progress does not meet stakeholder or shareholder expectations

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