SUSTAINABILITY FEED & ADDITIVE MAGAZINE March 2024 65 nations have agreed on its goals, as well as committed to specific targets and standards of accountability. The Paris Agreement is part of the UNFCCC. • The United Nations’ Sustainable Development Goals (SDGs): The SDGs are a set of 17 goals that aim to end poverty, protect the planet, and ensure prosperity for all. They provide a framework for companies to align their business strategies with sustainable development objectives. These goals were adopted by all United Nations Member States in September 2015 as part of the 2030 Agenda for Sustainable Development. • The Task Force on Climate-related Financial Disclosures (TCFD): The TCFD is a voluntary initiative that provides recommendations for companies to disclose climate-related risks and opportunities in their financial filings. The TCFD was founded by the Financial Stability Board (FSB), an international body that monitors and makes recommendations about the global financial system, in December 2015. The TCFD encourages organizations to conduct scenario analysis, which involves assessing the potential financial impact of different climate-related scenarios, including both transition risks (related to policy and market changes) and physical risks (related to climate impacts like extreme weather events). • The International Sustainability Standards Board (ISSB) issued the first two sustainability standards, the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and the IFRS S2 Climate-related Disclosures. They will theoretically become effective on or after January 1, 2024. If jurisdictions challenge or delay bringing them into law, the effective date may well be later. IFRS S1 provides a set of disclosure requirements designed to enable companies to communicate to investors about the sustainability-related risks and opportunities they face over the short, medium and long term. IFRS S2 sets out specific climate-related disclosures and is designed to be used with IFRS S1. Both fully incorporate the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). CONCLUSION China, the US, and India have been, for a while now, the largest polluter nations. However, statistics do not look at the indirect pollution cost of countries that produce abroad for internal consumption. If we take that cost into consideration, it becomes evident that sustainability regulations at both national and international level are crucial for addressing environmental and social challenges. Regulations alone are obviously not enough. Strict enforcement and monitoring are what is going to transform national and supra-national entities, regional authorities, businesses, communities, and individuals into responsible actors.
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