The objective of this article is to identify the existing dynamics and clarify the reasoning behind reporting on environmental, climate, and human rights information in search of effective and binding frameworks to enhance transparency. To that effect, this article relates the evolution from a corporate sustainable business focus to reporting on environmental social and governance and increasing corporate accountability. It then expands on defining non- financial information and ESG reporting with regards to recent European Union Regulations (SFDR, Taxonomy) as well as the challenges associated with defining sustainable investments. This article aims to compare and understand the various regulatory strategies and frameworks around the world on environmental, social, and climate-related disclosure. Finally, this article questions the level of reporting on human rights and the relevance of upcoming human rights due diligence laws in the European Union (Corporate Sustainability Reporting Directive) and global initiatives to enhance human rights transparency. In conclusion, this article suggests that an effective reporting framework combines mandatory disclosures, guided reporting rules, and definitions tailored to social and environmental realities to enable companies to demonstrate greater transparency.
Recommended CitationPaco Mengual, Determining an Effective Regulatory Framework for Businesses to Report on the Environment, Climate, and Human Rights, 35 Pace Int'l L. Rev. 224 (2023)
Available at: https://digitalcommons.pace.edu/pilr/vol35/iss2/3