Daniel Nevzat (UK)

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ESAs propose disclosures for fossil gas and nuclear energy investments

On 30 September 2022, the three European Supervisory Authorities (ESAs) published a final report containing draft regulatory technical standards (RTS) regarding the disclosure of financial products’ exposure to investments in fossil gas and nuclear energy activities under the Sustainable Finance Disclosure Regulation (SFDR). The proposed RTS amend the RTS laid down in Delegated Regulation (EU) … Continue Reading

ECB publishes consultation response to the EFRAG’s public consultation on the first set of draft European Sustainability Reporting Standards.

On 29 July 2022, the European Central Bank (ECB) published its response to the European Financial Reporting Advisory Group’s (EFRAG) public consultation on the first set of draft European Sustainability Reporting Standards. The response provides the following general remarks: The ECB strongly supports EU efforts to improve sustainability disclosures. The ECB welcomes the progress made … Continue Reading

The FRC and FCA find significant progress, but further improvement needed under new climate disclosure rules

On 29 July 2022, the Financial Reporting Council (FRC) and Financial Conduct Authority (FCA) published two reports which found that premium listed companies have made significant steps forward in the quality of climate related information provided in their financial reports, but further improvements are needed. The first report provided a review of TCFD-aligned disclosures by … Continue Reading

EBA updates webpage on Joint Regulatory Technical Standards on ESG disclosure standards for financial market participants

On 28 July 2022, the European Banking Authority (EBA) updated its webpage on Joint Regulatory Technical Standards (RTS) on ESG disclosure standards for financial market participants. The webpage now makes note that it has been adopted and published in the Official Journal.… Continue Reading

FMSB: Spotlight review: ESG Ratings

On 20 July 2022, the Financial Markets Standards Board (FMSB) published a spotlight review on ESG ratings. The review aims to facilitate additional disclosure and transparency of ESG ratings’ methodologies and data collection processes, in order to enhance user understanding of ESG ratings and facilitate comparability across rating providers in wholesale financial markets. The review … Continue Reading

Progress Report on FSB Roadmap for Addressing Financial Risks from Climate Change

On 14 July 2022, the Financial Stability Board (FSB) published its first report taking stock on the progress made by standard setting bodies and other international organisations on action taken on the Roadmap for Addressing Financial Risks from Climate Change. The Roadmap, which was published in July 2021, sets out a comprehensive and coordinated plan … Continue Reading

Call for feedback on the draft report by the Platform on Sustainable finance on minimum safeguards

On 11 July 2022, the Platform on Sustainable Finance issued a call for feedback on a draft report on minimum safeguards. The minimum safeguards set out in Article 18 of the Taxonomy Regulation require that companies implement procedures to comply with OECD Guidelines for multinational enterprises and the UN guiding principles on business and human … Continue Reading

ESG – Key regulatory risks for financial services firms in the UK and US and how to manage them

Investors are increasingly seeking sustainable financial products and ESG investing, traditional investing combined with sustainable or otherwise philanthropic aims, has seen huge growth in recent years. Regulated firms are also seeking to improve their own ESG performance more generally to build stronger relationships with their stakeholders, including those who use their services. Whilst the growing … Continue Reading

Call for input to ESAs regarding greenwashing monitoring and supervision

On 30 June 2022, the European Commission published a letter and call for input (dated 16 May 2022) to the European Supervisory Authorities (ESAs) regarding greenwashing risks and supervision of sustainable finance policies. In July 2021 the Commission adopted the ‘Strategy on Financing the Transition to a Sustainable Economy’ which outlined steps, in cooperation with … Continue Reading

FCA Feedback Statement 22/4 ‘ESG integration in UK capital markets’

On 29 June 2022, the FCA published Feedback Statement 22/4 ‘ESG integration in UK capital markets’ (FS22/4). In FS22/4 the FCA provides feedback on the discussion chapter of Consultation Paper 21/18 ‘Enhancing climate-related disclosures by standard listed companies and seeking views on ESG topics in capital markets’ which covered environmental, social and governance (ESG) integration … Continue Reading

TNFD issues second iteration beta framework including initial guidance on metrics

On 28 June 2022, the Taskforce on Nature-related Financial Disclosures (TNFDs) issued version 0.2 of its beta framework for nature-related risk and opportunity management and disclosure. The Taskforce consists of 34 individual members representing financial institutions, corporates and market service providers. This release builds on the first iteration release in March and features TNFD’s approach … Continue Reading

ESMA publishes results of its call for evidence on ESG ratings

On 27 June 2022, the European Securities and Markets Authority (ESMA) published a letter it had sent to the European Commission setting out its findings from its call for evidence to gather information on the market structure for ESG rating providers in the EU. In the letter the ESMA provides a brief introduction to the … Continue Reading

FCA updates CFRF webpage

On 24 June 2022, the FCA updated its webpage on the Climate Financial Risk Forum (CFRF). The webpage now includes a section, setting out climate scenario analysis. The section sets out how, during session 2 of the forum, the CFRF scenario analysis working group started developing an online climate scenario analysis tool, and how, on … Continue Reading

Glasgow Financial Alliance for Net Zero report ‘Financial Institution Net-zero Transition Plans’

On 15 June 2022, the Glasgow Financial Alliance for Net Zero (GFANZ) invited public comment on its draft Net-zero Transition Plan (NZTP) framework for the financial sector. This report identifies and discusses areas that require work to enhance a global pan-sector approach to transition planning, including; adaptation and resilience; carbon credits; data challenges; a just … Continue Reading

Commission letter to chairs of ESAs on amendments to RTS under the SFDR related to product exposure to gas and nuclear activities

On 9 June 2022, the European Commission published a letter it had sent to the chairs of the European Supervisory Authorities (ESAs) concerning amendments to the regulatory technical standards (RTS) under the Sustainable Finance Disclosure Regulation (SFDR). On 6 April 2022, the Commission adopted a Delegated Regulation containing all 13 draft RTS under the SFDR. … Continue Reading

Corrigendum to the Taxonomy Regulation

On 9 June 2022, there was published in the Official Journal of the EU, Corrigendum to Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088. The Corrigendum amends Regulation (EU) 2020/852 by inserting a … Continue Reading

ESAs provide clarifications on key areas of the RTS under SFDR

On 2 June 2022, the European Supervisory Authorities (ESAs) published a statement providing clarification on the draft regulatory technical standards (RTS) issued under the Sustainable Finance Disclosure Regulation (SFDR). The ESAs have issued the statement following receipt of numerous requests for clarification from stakeholders and Member State competent authorities relating to the practical implications of … Continue Reading

ESMA supervisory briefing ‘Sustainability risks and disclosures in the area of investment management’

On 31 May 2022, the European Securities and Markets Authority (ESMA) published a supervisory briefing that is intended to enhance convergence among Member State competent authorities (NCAs) by addressing potential issues arising from the supervision of sustainability-related disclosures as well as the integration of sustainability risks by fund managers and the design of common supervisory … Continue Reading

The UK sustainable finance regime for asset managers: A practical guide

Our latest 20 minute webinar will be taking place on 15 June at 9:00am and will explore the UK sustainable finance regime for asset managers. Sustainable finance regulation continues to be high on the agenda of asset managers and in this 20 minute webinar our financial services team provides an overview of existing UK rules … Continue Reading

ESMA final report on the 2021 CSA on costs and fees

On 31 May 2022, the European Securities and Markets Authority (ESMA) issued a report on the common supervisory action (CSA) on costs and fees for investment funds. The CSA was carried out with Member State competent authorities (NCAs) during 2021. The CSA’s aim was to assess, foster and enforce the compliance of supervised entities with … Continue Reading

Results of the 2021 Climate Biennial Explanatory Scenario

On 24 May 2022, the Bank of England (BoE) published the results of the Climate Biennial Explanatory Scenario (CBES), the first exploratory scenario exercise on climate risk, involving the largest UK banks and insurers. The BoE asked banks and insurers participating in the CBES to use three scenarios to look at how climate related risks … Continue Reading

Commission letter to the ESAs concerning amendments to the RTS under the SFDR

On 6 May 2022, the European Commission published a letter (dated 11 April 2022) which it had sent to the chairs of the European Supervisory Authorities (ESAs) concerning the draft regulatory technical standards (RTS) under the Sustainable Finance Disclosure Regulation (SFDR). The Commission decided to bundle all 13 draft RTS into a single delegated regulation … Continue Reading

Commission adopts disclosure rules on sustainable investments

On 6 April 2022, the European Commission adopted a Delegated Regulation (together with five annexes) containing regulatory technical standards (RTS) for disclosures of sustainability-related information under the Sustainable Finance Disclosures Regulation (SFDR). The RTS specify the content, methodology and presentation of the information to be disclosed, thereby improving its quality and comparability. It also supports … Continue Reading
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