From Science Matters
By Ron Clutz
Mish writes at his blog based on a report from South China Morning Post
The EU Warns “There is No Escape” from its ESG Environment Madness Excerpts in italics with my bolds and added images. H/T Tyler Durden
The demand for highly paid ESG nannycrats to enforce nonsensical rules is on the rise. This will cause a rippling impact of higher inflation everywhere.
From South China Morning Report: Please note Impending EU Laws on ESG Disclosures Will Be a Matter of Survival for Asian Suppliers.
Impending regulations in the European Union, which is at the forefront on ESG legislation, will soon require tens of thousands of suppliers across the supply chain in Asia to report their ESG performance, said Amfori president Linda Kromjong.
“If you don’t start preparing now, you will be late if and when
the legislation kicks in,” she told the Post.
The Corporate Sustainability Reporting Directive, due to be rolled out next year, will require companies to disclose how sustainability issues, such as climate change, impact their business and how their operations in turn affect people and the planet.
Some 50,000 companies – all large companies and listed small and medium-sized firms – will have to make such disclosures, up from 11,700 large companies and public entities with more than 500 employees mandated under existing legislation. Auditing of the disclosures will be mandatory.
These companies will in turn require their global suppliers to disclose their sustainability data, such as greenhouse-gas emissions, so that they can calculate their own environmental footprints and social risk exposure.
The European Parliament’s environment committee last Thursday backed tougher legislation that will force firms with over 250 staff and annual worldwide turnover of more than €40 million (US$42.8 million), to check and report whether their suppliers within and outside Europe use slave or child labour, or pollute the environment.
Escape From the Madness
‘There is no escape’ from impending European Union rules requiring sustainability reporting, Amfori president Linda Kromjong warns Asian suppliers
Also note that Brussels-based Amfori provides digital tools and training for suppliers to do self-assessments on ESG performance and compare themselves with industry benchmarks, based on international standards.
And you probably can guess what that means
If not, then please make another note: Hong Kong to pay 30 per cent more for ESG jobs as companies fight for talent to meet sustainability targets.
If you don’t think this madness is hugely inflationary, then you just are not thinking at all.
Indeed, we can see where this is going. RegulationFare is like LawFare: The process is the punishment. Ronald Reagan’s observation comes to mind:
In the end, the state directs business to meet state objectives, either through ownership or through agency rules. That brings in the reality described by Trotsky: