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Topic: ESG

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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

FCA evaluation report – Supporting innovation in ESG data and disclosures: the digital sandbox sustainability pilot

On 23 June 2022, the FCA published an evaluation report regarding the digital sandbox sustainability pilot. The report provides an overview of the digital sandbox sustainability cohort and discusses the key lessons learned. The FCA also covers its current thinking for the future of the sandbox. The FCA is committed to establishing a permanent operating … 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

Basel Committee issues principles for the effective management and supervision of climate-related financial risks

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

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

Corrigendum to the Taxonomy Regulation

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

Letter from the Department for Business, Energy and Industrial Strategy on the proposed Directive on corporate sustainability due diligence

On 7 June 2022, there was published a letter from the Department for Business, Energy and Industrial Strategy to the Chair of the House of Commons’ Business, Energy and Industrial Strategy Committee. The letter concerns the European Commission’s proposal for a Directive on corporate sustainability due diligence. In the letter the UK Government states that … Continue Reading

European Parliament ECON Committee adopts report on European Green Bonds proposal

 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

IPSF updates Common Ground Taxonomy

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

ESAs provide clarifications on key areas of the RTS under SFDR

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

ESMA supervisory briefing ‘Sustainability risks and disclosures in the area of investment management’

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

NGFS publishes its 2022-2024 work program

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

House of Commons’ Environment Audit Committee call for evidence ‘The financial sector and the UK’s net zero transition’

On 30 May 2022, the House of Commons’ Environment Audit Committee issued a call for evidence ‘The financial sector and the UK’s net zero transition’. The committee invites written submissions addressing any or all of the issues raised in the following terms of reference in relation to decarbonisation initiatives and their impact, by 5 pm … Continue Reading

Results of the 2021 Climate Biennial Explanatory Scenario

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

SFDR queries forwarded to the Commission

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

Update to Green Finance strategy – call for evidence

On 12 May 2022, the government issued a call for evidence to support the development of an update to the UK’s Green Finance Strategy. The call for evidence contains 39 questions on four key objectives: Capturing the opportunity of green finance. Mobilising finance for the UK’s energy security, climate and environmental objectives. Greening the financial … Continue Reading

Transition Taskforce – Call for Evidence on a Sector-Neutral Framework for private sector transition plans

On 11 May 2022, the Transition Plan Taskforce (TPT) launched a Call for Evidence on a Sector-Neutral Framework for private sector transition plans. The consultation asks for feedback on a range of questions regarding the content of a gold standard transition plan. The consultation period closes on 13 July 2022. After this, the TPT will … Continue Reading

Commission letter to the ESAs concerning amendments to the RTS under the SFDR

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

ESAs consult on sustainability disclosures for STS securitisations

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

FSB launches consultation on supervisory and regulatory approaches to climate-related risks

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

Commission adopts disclosure rules on sustainable investments

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

10 things to know about the EU Corporate Sustainability Due Diligence proposal

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

Commission targeted consultation on ESG ratings and sustainability factors in credit ratings

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

Platform on sustainable finance report on technical screening criteria

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
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