On 31 May 2023, the European Supervisory Authorities (ESAs) published their progress reports on greenwashing in the financial sector. In these reports, the ESAs put forward a common high-level understanding of greenwashing applicable to market participants across their respective remits – banking, insurance and pensions, and financial markets. The reports follow a request from the … Continue Reading
On 31 May 2023, the Network for Greening the Financial System (NGFS) published a report taking stock on financial institutions’ transition plans and their relevance to micro-prudential authorities. Building on the conclusions of the previous NGFS report on ‘capturing risk differentials from climate-related risks’ which emphasised the importance of a forward-looking approach to assess climate-related … Continue Reading
On 17 May 2023, the European Supervisory Authorities (ESAs) published consolidated questions and answers on the Sustainable Finance Disclosure Regulation (SFDR) and its Delegated Regulation (Commission Delegated Regulation 2022/1288). The document combines responses given by the European Commission to questions requiring interpretation of Union Law according to Article 16b(5) of the ESA Regulations, which are … Continue Reading
On 17 May 2023, the European Supervisory Authorities (ESAs) published consolidated questions and answers on the PRIIPs key information document. The document combines responses given by the European Commission to questions requiring the interpretation of Union Law according to Article 16b(5) of the ESA Regulations, which are colour coded in blue, and responses generated by … Continue Reading
On 19 April 2023, the Bank of England (BoE) published a speech by its Chief Financial Officer (CFO), Afua Kyei, given at the Institute of Practitioners in Advertising’s Talent and Diversity conference. In the speech, Ms Kyei discusses the topic of diversity, equity and inclusion (DEI) and her personal story of how she became one … Continue Reading
On 19 April 2023, the FCA published a speech by its Director of Retail Banking, David Geale, delivered at the London Institute of Banking and Finance mortgage conference at Congress Centre, London. The speech discusses the FCA’s view of green mortgages. Mr Geale begins by defining a green mortgage, as a mortgage which includes an … Continue Reading
On 19 April 2023, the House of Commons published a letter from the UK Sustainable Investment and Finance Association (UKSIF) thanking the Treasury Sub-Committee on Financial Services Regulations for its invitation to give evidence to the ‘Greenwashing: sustainability disclosure requirements (SDR)’ inquiry. The letter notes that UKSIF and its members continue to be strongly supportive … Continue Reading
On 18 April 2023, the Bank of England (BoE) published a speech by its Executive Director for Financial Stability, Strategy and Risk, Sarah Breedon, given at Chapter Zero’s fourth anniversary dinner. The speech addresses climate action, looking at the collective progress to date in the transition to net zero. Introduction Ms Breedon reflects on a … Continue Reading
On 14 April 2023, the European Securities and Markets Authority (ESMA) published a letter from the European Commission (the Commission) on the Questions and Answers (Q&As) pursuant to article 16b(5) of the founding Regulations of the European Supervisory Authorities (ESAs). The aim of these Q&As is to help financial market participants apply the Regulation, especially … Continue Reading
On 5 April 2023, the European Commission issued a call for feedback on a proposed Delegated Regulation containing a new set of EU Taxonomy criteria for economic activities making a substantial contribution to one or more of the following environmental objectives: sustainable use and protection of water and marine resources, transition to a circular economy, … Continue Reading
On 30 March 2023, the Government published the 2023 Green Finance Strategy. The Green Finance Strategy represents the latest policy blueprint developed by HM Treasury, the new Department for Energy Security and Net Zero, and the Department for Environment, Food and Rural Affairs, aimed at seizing the opportunities and managing the financial risks arising from … Continue Reading
On 30 March 2023, HM Treasury published a Consultation Paper on the future regulatory regime for environmental, social and governance (ESG) ratings providers. The consultation sets out a proposed policy approach for bringing ESG ratings providers into the UK regulatory perimeter, as part of the government’s updated Green Finance Strategy. In the Consultation Paper, HM … Continue Reading
On 29 March 2023, the FCA announced updates on its Sustainability Disclosure Requirements (SDR) and investment labels consultation, including feedback on the proposals and planned timings for the Policy Statement. Due to the “significant response” received to the consultation, the FCA intends to publish the Policy Statement in Q3 2023, and the proposed effective dates … Continue Reading
On 23 March 2023, the FCA updated their webpage on the Climate Financial Risk Forum (CFRF). The webpage has been updated to include further Session 3 guides. Written by industry, for industry, these guides build on the CFRF’s previous publications and aim to continue to contribute to the development of effective practice. The guides focus … Continue Reading
The FCA’s discussion paper DP23/2, which is open for comment until 22 May 2023, sets out a range of proposals to reform the UK regulatory regime for asset managers and funds. The DP follows the government’s conclusion in December 2022 of its Future Regulatory Framework review and is intended to help the FCA decide how … Continue Reading
On 17 February 2023, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2023/363 of 31 October 2022 amending and correcting the regulatory technical standards (RTS) laid down in Delegated Regulation (EU) 2022/1288 as regards the content and presentation of information in relation to disclosures in pre-contractual documents … Continue Reading
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
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
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
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
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
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
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
