We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Sustainable Finance Lobbying Overview: BusinessEurope appears to have engaged negatively on a number sustainable finance policy streams.
Top-line Messaging on Sustainable Finance Policy: BusinessEurope has supported the need to mobilize investments in line with the Paris Agreement and EU climate goals. On sustainable finance policy, BusinessEurope has cautioned against policies that would restrict investments in or lending to environmentally harmful activities.
Position on Regulated Corporate ESG Disclosure: BusinessEurope has engaged on policy to regulate corporate ESG disclosure, suggesting, in feedback to the Commission in 2019 on the update to the non-binding guidelines on reporting climate-related information, that any new ESG requirements should be voluntary. In 2020, in feedback to the European Commission on the update to the Non-Financial Reporting Directive, BusinessEurope argued against a number of key proposals including the expansion of the scope to a wider set of companies, greater assurance and verification requirements of non-financial data and requirements for companies to disclose how they determine what is material. In feedback to the European Commission in 2022, BusinessEurope advocated against key aspects of the Corporate Sustainability Reporting Directive (CSRD).
Position on Taxonomies: BusinessEurope has been particularly engaged on the taxonomy regulation, reportedly lobbying the European Parliament negotiations in March 2019, arguing against ambitious amendments. In December 2019, BusinessEurope wrote to the trialogue negotiators to argue for weaker thresholds for in-transition activities and against corporate disclosure requirements under the taxonomy regulation. In feedback to the European Commission's consultation on the Renewed Sustainable Finance Strategy in 2020, BusinessEurope once again argued that the taxonomy's criteria were too narrow and opposed the expansion of the scope to cover environmentally harmful activities. In consultation responses and numerous meetings with the Commission in 2021, BusinessEurope was active in pushing to weaken corporate disclosure requirements under the taxonomy. Also in 2021, BusinessEurope advocated against the use of the Do No Significant Harm principles under the taxonomy in public funding programme Horizon Europe.
Position on ESG Labels, Standards and Benchmarks: In feedback to the European Commission's consultation on the Renewed Sustainable Finance Strategy in 2020, BusinessEurope argued that the EU Ecolabel, Green Bond Standard and Climate Benchmarks were "subject to very detailed rules which cumulatively, are detrimental to the successful development of a sustainable economy"
Position on integrating ESG into Investor Duties: In feedback to the European Commission in 2020, BusinessEurope did not support the proposal to improve integration of members’ and beneficiaries’ ESG preferences in IORP II.
Position on integrating ESG into Prudential Regulation: Also in feedback to the European Commission in 2020, BusinessEurope opposed action to integrate ESG risks into prudential regulation. In November 2022, BusinessEurope and the European Banking Federation wrote a joint letter to the European Parliament to oppose suggestions of increased capital requirements for environmentally harmful assets.
Transparency: Business Roundtable’s website lacks a dedicated, clearly identifiable disclosure of its sustainable finance-relevant policy positions and lobbying activities, but relevant positions can be found following a search of the website. It clearly discloses board, committee, and full membership.