Professional insight into unlocking ESG attracted a lot of attention from the members of FIC Serbia. Mr. Nebojša Lukač and Teodora Pasulj from PwC Serbia informed the attendees about the ESG policies that drive changes globally.
Special attention was paid to Human Rights Due Diligence regulations that are evolving globally. On that occasion, it was pointed out that the UN Guiding Principles are the global authoritative standard and the basis of many Human Rights Due Diligence regulations for companies and the states that have to protect Human Rights, which was unanimously endorsed by the UN Human Rights Council in 2011.
Regulation important for ESG implementation includes:
- European Green Deal
- EU Taxonomy
- Corporate Sustainability Reporting Directive – CSRD
- Whistleblowing Directive / Pay Transparency Directive
- Carbon-border adjustment mechanism (CBAM)
- EU Emissions Trading System (EU-ETS)
- Law on Accounting – Non-financial reporting (Article 37. and 38.)
- US Securities and Exchange Commission Proposals to “Improve and Standardize Climate-Related Disclosures to Investors” (SEC, 2022).
- Local regulations at the level of individual countries (Supply Chain Due Diligence law in Germany (“German Act”)).
“In-depth knowledge of ESG regulation is a prerequisite of sustainable and responsible business operations of Serbian companies”, emphasized FIC Serbia Legal Committee Vice President Mr. Nebojsa Lukac PwC Serbia, on today’s FIC Insight into ESG principles which are shaping the world of business. “There are many novelties regarding ESG and Serbian companies should make imminent steps to get familiar with these legislation changes and comply with thereof, irrespective if related to non-financial reporting, protection of whistleblowers, carbon border adjustments mechanisms, and on top of the supply chain management which lays down extensive obligations for companies concerning their own business area, but also their direct and indirect suppliers. Many of the necessary measures require concrete preparation, especially considering that the German Supply Chain Due Diligence Directive is already in force while CSDDD is to be adopted (both having effects on Serbian suppliers),” concluded Mr. Lukač.