Under the new requirements, companies who use IFRS as their...

Under the new requirements, companies who use IFRS as their accounting standard will have to communicate to investors about the sustainability-related risks and opportunities they face over the short, medium and long term. The aim is to improve trust and confidence in company disclosures about sustainability to inform investment decisions.They have to do ESG assessment in many ways and must disclose their assessment to the capital market.

That extra 17 reams of paper would've made a difference if BP had informed the investors about the risks. It would've swayed a lot of investment decision because who wants to take a major risk in putting their money in an oil exploration company who has no safety culture? It would open up to a lot of potential liabilities if things go wrong (and it did go wrong). In a hindsight, perhaps BP might have done something about their safety issue because of the backlash from the capital market.

The idea is to make it more difficult and expensive for companies, who choose to ignore ESG reporting, to source their capital. I'm looking at you, Brazil.