2023—A Pivotal Year in Climate Risk Disclosure and ESG Fund Requirements

In 2022, disclosure and reporting requirements were proposed in both the European Union and the United States for Environmental, Social and Governance (ESG) metrics, but primarily for greenhouse gas (GHG) and climate-related risks. Since the release of these proposals, many industry, non-governmental organization (NGO), and public and governmental positions and interventions have surfaced to promote or counter these proposals. The primary concerns surrounding these proposals focus on the intent and cost of disclosure together with the availability, accuracy, and duplication of Scope 3 data. The schedule to finalize these proposals will make 2023 a pivotal year regarding climate risk disclosure and ESG fund requirements.