Daniel Nevzat (UK)

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Commission adopts an Implementing Regulation amending the ITS in Implementing Regulation 2021/637 as regards the disclosure of ESG risks

On 30 November 2022, the European Commission adopted an Implementing Regulation amending the implementing technical standards laid down in Implementing Regulation 2021/637 as regards the disclosure of environmental, social and governance (ESG) risks together with Annex 1 and Annex 2. Commission Implementing Regulation (EU) 2021/6372 specifies uniform disclosure formats and associated instructions for the disclosures … Continue Reading

ESMA consults on guidelines on funds’ names using ESG or sustainability-related terms

On 18 November 2022, the European Securities and Markets Authority (ESMA) published a consultation paper containing draft guidelines on funds’ names using ESG or sustainability-related terms. Currently, ESMA has provided some principles based guidance on funds’ names with ESG or sustainability related terms in a supervisory briefing on sustainability risks and disclosures in the area … Continue Reading

ECB sets deadline for EU banks to deal with climate risks

On 2 November 2022, the European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far away from adequately managing climate and environmental risks. The thematic review aimed to check whether EU banks adequately identify and manage climate risks as well as environmental risks such as biodiversity loss. … Continue Reading

Commission announces that new transparency disclosure rules will increase the transparency of financial market actors in gas and nuclear

On 31 October 2022, the European Commission updated the technical standards to be used by financial market participants when disclosing sustainability-related information under the Sustainable Finance Disclosures Regulation. The amendments will require financial market participants to also disclose by way of a simple graph the extent to which their portfolios are exposed to the gas … Continue Reading

ESMA to work on ESG disclosures as a new union strategic supervisory priority

On 27 October 2022, the European Securities and Markets Authority (ESMA) announced that it is changing its Union Strategic Supervisory Priorities (USSPs) to include ESG disclosures alongside market data quality. According to ESMA, this represents an important step in the implementation of its strategy, which gives a prominent role to sustainable finance. The USSPs are … Continue Reading

FCA publishes Consultation Paper on sustainability disclosure requirements and investment labels

On 25 October 2022, the FCA published Consultation Paper CP22/20 on sustainability disclosure requirements (SDR) and investment labels. In the Consultation Paper, the FCA expresses that there are growing concerns that firms may be making exaggerated, misleading or unsubstantiated sustainability-related claims about their products; claims that don’t stand to closer scrutiny (so-called ‘greenwashing’). The FCA … Continue Reading

EBA publishes report on incorporating ESG risks in the supervision of investment firms

On 24 October 2022, the European Banking Authority (EBA) published a report, addressed to competent authorities, on how to incorporate ESG risks in the supervision of investment firms. The Report also provides an initial assessment of how ESG factors and ESG risks could be included in the supervisory assessment of investment firms. The Report should … Continue Reading

Letter from Sam Woods ‘Thematic feedback on the PRA’s supervision of climate-related financial risk and Bank of England’s climate biennial exploratory scenario exercise’

On 21 October 2022, the PRA published a letter it had sent to CEOs of PRA-regulated firms, which provides a summary of capabilities, to which PRA-regulated firms are expected to be able to demonstrate now, on approaches to managing climate risks. The letter sets forth that every firm in scope of Supervisory Statement 3/19 ‘Enhancing … Continue Reading

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
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