ESG Regulations: Global Update April 2024
As ESG regulations rapidly develop, FTI Consulting is providing a quick summary of need to know updates across the globe.
Eco Taxes
Greenwashing
As ESG regulations rapidly develop, FTI Consulting is providing a quick summary of need-to-know updates from around the globe. This month we cover ecological taxes in Mexico and upcoming anti-greenwashing implementation in the UK.
1. Taxes on Waste and Water come into effect in Mexico
What do I need to know?
- The Financial Code for the State of Mexico implemented two environmental tax laws:
- The Ecological Tax on Waste Disposal, Confinement, and Storage imposes taxes per metric ton of waste that will not be reused or recycled.
- The Tax on Pollutant Emissions to Water charges profiting entities for polluting water, based on the amount of cubic meters polluted and the number of substances polluting the water.
What’s next:
- Companies are expected to comply with the provisions that entered into force April 1, 2024.
2. Anti-greenwashing regulation to be implemented in the United Kingdom
What do I need to know?
- In November 2023, the UK Financial Conduct Authority (FCA) established Sustainability Disclosure Requirements and Labelling Regime (SDR) guidelines for sustainability claims in investment products to ensure transparency and accuracy for investors.
- One critical element of the SDR is the anti-greenwashing rule, which dictates references to sustainability in products be “consistent with… the product”, as well as “fair, clear, and not misleading”. This rule was expected to come into effect when the SDR was published in 2023, but the FCA delayed implementation until May 2024.
What’s next?
- The anti-greenwashing rule will be in effect May 31, 2024, and firms can start to utilize labels with accompanying disclosures on July 31, 2024.
Contact us: For further information on how your business can better navigate emerging ESG regulations, please contact Ben Herskowitz, Senior Managing Director, U.S. at [email protected]
The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals.
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