On 15 June 2022, the Basel Committee on Banking Supervision (Basel Committee) issued principles for the effective management and supervision of climate-related financial risks. The 18 principles are intended to promote a principles-based approach to improving both banks’ risk management and supervisors’ practices related to climate-related financial risks. They cover corporate governance, internal controls, risk … 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 20 May 2022, the European Parliament Economic and Monetary Affairs (ECON) Committee adopted a report on the European Commission’s (Commission) proposal for a regulation of the European Parliament and of the Council on European green bonds (EuGB Regulation). The EuGB Regulation will introduce a common framework of rules regarding the use of the “European … Continue Reading
On 3 June 2022, the International Platform on Sustainable Finance (IPSF) updated the Common Ground Taxonomy (CGT) Instruction Report and the CGT Table of Activities. The updates follow an earlier consultation that the IPSF ran last year. The CGT is based on the activities currently included in both the adopted EU taxonomy for sustainable activities … 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
On 30 May 2022, the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) published its new work program, detailing its priorities for the next two years. The new work program will be undertaken by four work streams and two task forces: Work stream on Supervision – Chaired by Mr Jamey Hubbs … Continue Reading
On 13 May 2022, the European Supervisory Authorities (ESAs) submitted to the European Commission 10 queries regarding the interpretation of the Sustainable Finance Disclosure Regulation (SFDR) and the Taxonomy Regulation (TR). The queries relate to the following five areas: Principal adverse impact (PAI) disclosures: Whether it is possible for a financial market participant to not … 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 3 May 2022, the European Supervisory Authorities issued a consultation paper seeking input on draft regulatory technical standards (RTS) on the content, methodologies and presentation of information in respect of the sustainability indicators for simple, transparent and standardised (STS) securitisations. The draft RTS do not provide a framework for ‘sustainable securitisation’. Rather they provide … Continue Reading
On 29 April 2022, the Financial Stability Board (FSB) issued a report setting out certain recommendations that are intended to assist supervisory authorities in developing their approaches to monitor, manage and mitigate cross-sectoral and system-wide risks arising from climate change and promote consistent approaches across sectors and jurisdictions. The report: Examines supervisory and regulatory reporting … 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 23 February 2022, the European Commission (the Commission) published a proposal for a Directive on Corporate Sustainability Due Diligence (CSDD or the Directive). This note summarises ten key issues enterprises active in the EU should know about the proposed Directive. 1) Aim of the proposal The proposed CSDD serves a number of purposes. First, … 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 24 March 2022, the Network for Greening the Financial System (NGFS) issued a statement on nature-related financial risks. Among other things the statement notes that on the basis of available scientific evidence, the NGFS is of the view that nature-related risks, including those associated with biodiversity loss, could have significant macro-economic implications, and that … Continue Reading
On 14 March 2022, the European Central Bank (ECB) published its report on banks’ progress towards transparent disclosure of their climate-related and environmental risk profiles. Frank Elderson, Member of the ECB’s Executive Board and Vice-Chair of the ECB’s Supervisory Board, has also delivered a speech on the ECB’s supervisory approach on climate-related and environmental risks. … 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 14 March 2022, the International Organization of Securities Commissions (IOSCO) published its work plan to develop sustainable finance. Among other things IOSCO plans to review the soon-to-be-published IFRS International Sustainability Standards Board (ISSB) Exposure Drafts of proposed climate and general sustainability disclosure requirements, as well as the final standards when they are produced. The … 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
