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
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
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
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
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
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
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
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
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
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
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
On 4 April 2022, the European Commission issued a targeted consultation on the functioning of environmental, social and governance (ESG) ratings and sustainability factors in credit ratings. The purpose of the consultation is to help the Commission gain a better insight on the functioning of the market for ESG ratings, as well as better understand … Continue Reading
On 30 March 2022, the Platform on Sustainable Finance (Platform) issued a report containing recommendations on the technical screening criteria for the four remaining environmental objectives of the EU taxonomy. The report principally contains recommendations relating to technical screening criteria for objectives 3 – 6 of the Taxonomy Regulation, as well as recommendations to improve … Continue Reading
On 25 March 2022, the European Supervisory Authorities (ESAs) updated their joint supervisory statement on the application of the Sustainable Finance Disclosure Regulation (SFDR). The updated statement includes a new timeline, expectations about the explicit quantification of the product disclosures under Articles 5 and 6 of the Taxonomy Regulation, and the use of estimates. The … Continue Reading
On 9 March 2022, the European Commission adopted a Delegated Regulation (together with Annexes 1, 2 and 3) amending Delegated Regulation (EU) 2021/2139 (the Taxonomy Climate Delegated Act) as regards economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 (the Taxonomy Disclosures Delegated Act) as regards specific public disclosures for those economic activities. … Continue Reading
On 4 March 2022, the European Commission updated its webpage on EU labels for benchmarks (climate, ESG) and benchmarks’ ESG disclosures by providing details of a study on feasibility, minimum standards and transparency requirements of an EU ESG benchmark label. The Commission explains that it is exploring the possibility of introducing a new label which … Continue Reading
On 2 March 2022, the European Banking Authority (EBA) published a report that analyses recent developments and challenges in introducing sustainability in the EU securitisation market. The report examines how sustainability could be introduced in the specific context of securitisation to foster transparency and credibility in the EU sustainable securitisation market and to support its … Continue Reading
On 28 February 2022, the Platform on Sustainable Finance issued a report proposing a structure for a social taxonomy within the current EU legislative environment on sustainable finance and sustainable governance. The current environment consists of: (i) the existing legislation and proposed initiatives on the EU taxonomy; (ii) the proposed corporate sustainability reporting directive; (iii) … Continue Reading
On 21 February 2022, the International Regulatory Strategy Group published a report, ‘ESG Ratings and ESG Data in Financial Services – A view from practitioners’. ESG ratings are an increasingly popular and powerful tool in helping market practitioners assess ESG or sustainability risks and opportunities. This report explores the challenges the market faces in its … Continue Reading
On 15 February 2022, the European Banking Federation, together with the United Nations Environment Programme Finance Initiative, issued a report, “Practical approaches to applying the EU Taxonomy to bank lending”, that explores practical approaches for banks who wish to use the EU Taxonomy. This includes how the EU Taxonomy could be used by banks that … Continue Reading
On 11 February 2022, the European Securities and Markets Authority (ESMA) published its Sustainable Finance Roadmap 2022-2024. In the Roadmap ESMA identifies three priorities for its sustainable finance work: Tackling greenwashing and promoting transparency. ESMA will investigate this issue, define its fundamental features and address it with coordinated action across multiple sectors. Building Member State … Continue Reading
On 27 January 2022, the European Central Bank (ECB) launched a supervisory climate risk stress test to assess how prepared banks are for dealing with financial and economic shocks stemming from climate risk. In its letter to the CEO of a significant institution, the ECB states that the exercise consists of three distinct modules comprising … Continue Reading
On 24 January 2022, the European Banking Authority (EBA) published a final report containing draft implementing technical standards (ITS) on prudential disclosures on environmental, social and governance (ESG) risks in accordance with Article 449a of the Capital Requirements Regulation (CRR). The final report presents the EBA final draft ITS on Pillar 3 disclosures on ESG … Continue Reading
On 24 January 2022, the Platform on Sustainable Finance (Platform) published a report to the European Commission containing its feedback on the draft Taxonomy Complementary Delegated Act – Commission Delegated Regulation (EU) …/… of XXX amending Delegated Regulation (EU) 2021/2139 as regards economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 as regards … Continue Reading
