On 19 September 2023, the Taskforce on Nature-related Financial Disclosures (TNFD) published its recommendations. The TNFD was launched in 2021. It is a global, market-led, science-based, and government-supported initiative with the mission to develop and deliver a risk management and disclosure framework for organisations to report and act on evolving nature-related issues. The aim of … Continue Reading
On 14 September 2023, the European Commission announced that it has launched a targeted consultation and a public consultation to seek feedback on the Sustainable Finance Disclosure Regulation (SFDR). The SFDR, which has been in application since March 2021, sets out how financial intermediaries, such as asset managers, have to communicate sustainability information to investors. … Continue Reading
On 8 September 2023, the Green Technical Advisory Group (GTAG) published the following two reports: The objective of this paper is twofold. Firstly, it provides the GTAG’s recommendations on how activities previously considered environmentally sustainable, i.e., ‘green’, are affected when the UK Green Taxonomy is implemented. Secondly, it covers how taxonomy-aligned activities, products and investments … Continue Reading
On 7 September 2023, the FCA published its response to the International Sustainability Standards Board’s (ISSB) request for information in its consultation on agenda priorities. The ISSB issued the consultation in May 2023, seeking feedback on its priorities for its next two-year work plan following the publication of the first two standards (IFRS S1 and … Continue Reading
On 7 September 2023, the Network for Greening the Financial System (NGFS) published the beta version of its conceptual framework for nature-related financial risks to guide policies and action by central banks and financial supervisors. The framework creates a shared science-based understanding of, and common language for, nature-related financial risks to help central banks and … Continue Reading
On 6 September 2023, the European Central Bank (ECB) published Occasional Paper No 328 – The road to Paris: stress testing the transition towards a net-zero economy. The ECB states that this Occasional Paper contributes to the field of climate stress testing by introducing the following three key innovations: The results of this exercise demonstrate … Continue Reading
On 5 September 2023, the Financial Services Consumer Panel (FSCP) published a final report on financial services firms’ personal data use, in which it considers whether that use is leading to bias and detriment for consumers with protected characteristics. The report addresses the assumption that some groups of consumers are experiencing bias and detriment, related … Continue Reading
On 5 September 2023, the FCA published the terms of reference (ToRs) for its review of the treatment of domestic politically exposed persons (PEPs) by financial services firms. The review is being conducted in compliance with Section 78 of the Financial Services and Markets Act 2023 and follows a letter that the FCA sent to … Continue Reading
On 4 September 2023, the European Central Bank (ECB) published the keynote speech, given by Frank Elderson, Member of the ECB Executive Board and Vice-Chair of the ECB Supervisory Board, delivered at the ECB legal conference. The speech addressed the risks of climate and environment-related litigation for the banking sector. In his speech, Mr Elderson … Continue Reading
On 1 September 2023, the Green Technical Advisory Group (GTAG) published the following reports: The report provides advice on the benefits and implications of adapting the coverage of the UK Green Taxonomy to better reflect the needs of the UK economy, drawing on the experience of the EU and other jurisdictions. The GTAG provides advice … Continue Reading
On 31 August 2023, the Joint Money Laundering Steering Group (JMLSG) published final revisions to Sector 22 (crypto asset providers and custodian wallet providers) in Part II of its Guidance. This includes a new Annex I to Sector 22 relating to cryptoasset transfers. The new guidance relates to the provisions of the Money Laundering, Terrorist … Continue Reading
We have published our latest ESG updater, tracking regulatory developments in the ESG space over the last month. Should you wish to receive the updater please contact Haney Saadah. For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.… Continue Reading
On 10 August 2023, the FCA published Primary Market Bulletin 45. Primary Market Bulletin 45 focuses on the International Sustainability Standards Board’s (ISSB) publication on 26 June 2023 of its first 2 IFRS Sustainability Disclosure Standards (ISSB standards): The FCA welcomes the publication of the two standards which deliver, for the first time, a global … Continue Reading
On 2 August 2023, the Department for Business and Trade (DBT) issued guidance on the UK government’s framework to create UK Sustainability Disclosure Standards (UK SDS) by assessing and endorsing the global corporate reporting baseline of the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB). The UK government is a strong … Continue Reading
On 1 August 2023, the Joint Money Laundering Steering Group (JMLSG) announced a revision to Part 1 Paragraph 5.3.89 of its guidance. The revision has been submitted to HM Treasury for Ministerial approval. Part 1 Paragraphs 5.3.85 to 5.3.91 cover customer due diligence – private individuals – mitigation of impersonation risk.… Continue Reading
On 31 July 2023, the European Commission announced that it had adopted the European Sustainability Reporting Standards (ESRS) for use by all companies subject to the Corporate Sustainability Reporting Directive (CSRD). The Commission has also published: The delegated act adopted by the Commission will be formally transmitted in the second half of August to the … Continue Reading
On 28 July 2023, the European Commission published an interim report on climate resilience dialogue. The Climate Resilience Dialogue, set up by the European Commission, aims to reduce the climate protection gap through facilitating exchanges between insurers, reinsurers, public authorities, and other stakeholders, such as real-estate developers and infrastructure operators, as set out in the … Continue Reading
On 26 July 2023, the Financial Reporting Council (FRC) published a thematic review which assesses the quality and maturity of climate-related metrics and targets disclosures. The review analysed Taskforce on Climate-related Financial Disclosures (TCFD) disclosures from twenty companies’ 2022 annual reports across four sectors – materials and buildings, energy, banks, and asset managers – and … Continue Reading
On 20 July 2023, the European Banking Authority (EBA) issued a consultation on draft templates for collecting climate related data from EU banks. The consultation is part of the one-off Fit-for-55 climate risk scenario which the EBA carries out with other European Supervisory Authorities with the support of the European Central Bank and the European … Continue Reading
We have published our latest ESG updater, tracking regulatory developments in the ESG space over the last month. Should you wish to receive the updater please contact Haney Saadah. For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.… Continue Reading
On 18 July 2023, the Financial Reporting Council issued a call for evidence to inform the proposed endorsement of the International Sustainability Standards Board (ISSB) IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures in June 2023). The call for evidence seeks views on whether application of the ISSB … Continue Reading
On 18 July 2023, the European Banking Authority (EBA) published a decision of 6 July 2023 concerning ad hoc collection by Member State competent authorities (NCAs) to the EBA of institutions’ ESG data. Under this decision ESG data will be collected from large, listed institutions based on their pillar 3 quantitative disclosures on ESG risks. … Continue Reading
On 13 July 2023, the Financial Stability Board (FSB) published its 2023 progress report on the Roadmap for addressing climate-related financial risks. In July 2021 the FSB published a Roadmap to address climate-related financial risks which was endorsed by G20 Finance Ministers. The Roadmap addressed the need for coordinated action with a large number of … Continue Reading
On 10 July 2023, the Lending Standards Board (LSB) published a report on business customers and green finance. The report examines the provision of green finance products for small and medium-sized enterprises (SMEs), finding that while demand for an interest in these products is growing, many smaller businesses still face barriers accessing sustainable financial products. … Continue Reading